J.C. Penney has released the list of 138 stores it plans to close in an effort to cut costs and grow sales at its strongest locations.
The release comes a few weeks after Penney's said it would close up to 140 stores this year, after similar decisions from Macy's and Sears. Between the companies' four biggest chains, which include Sears' Kmart brand, more than 300 big-box stores will go dark this year alone.
The closures highlight the pressures on traditional department stores, which are losing market share to off-price competitors and Amazon. They also underscore the deteriorating economics at lower-quality shopping centers, whose risk of failure rises when an anchor tenant exits.
"We believe closing stores will allow us to adjust our business to effectively compete against the growing threat of online retailers," J.C. Penney CEO Marvin Ellison said in a statement in February.
The company said at that time that most of its closures would occur in the second quarter. Liquidations will start April 17, it said Friday.
Penney's expects to save roughly $200 million a year by exiting these locations, which contributed less than 5 percent of its annual sales. It plans to invest in its best stores and digital operations while whittling down $4.3 billion in long-term debt.
Roughly 5,000 jobs will be affected by the closures, Penney's said Friday. At the time of its initial announcement, the company said it would provide some 6,000 employees with a "voluntary early retirement program," depending on their age and tenure. Eligible employees have until March 31 to decide whether they will accept the package, a spokeswoman said.
In addition to that offer, Penney's said Friday that it is trying to relocate certain leaders and will provide outplacement support services for eligible workers.
The moves will result in a pretax charge of roughly $225 million in the first half of fiscal 2017.
In addition to its store closures, Penney's is shutting down one supply chain facility in Lakeland, Florida, and relocating another in Buena Park, California.
Wall Street is already speculating that more closures could be ahead. At a recent meeting with analysts in New York City, Penney's said it is testing the rollout of Sephora beauty shops and home appliances in its smaller stores. Those categories have been fueling sales growth at the company's bigger locations.
Cowen and Co. analyst Oliver Chen warned if the tests are not successful, Penney's may need to close additional stores in the future.
More closures are already expected at Macy's. The chain has so far announced just 68 of the 100 locations it plans to exit, and said last month that the remainder of those stores will go dark "over the next few years."
List of JC Penney upcoming store closures
Mall/Shopping Center | City | State |
---|---|---|
Auburn Mall | Auburn | AL |
Tannehill Promenade | Bessemer | AL |
Gadsden Mall | Gadsden | AL |
Jasper Mall | Jasper | AL |
Military Plaza | Benton | AR |
Chickasaw Plaza | Blytheville | AR |
Riverview Mall | Bullhead City | AZ |
Downtown Bishop | Bishop | CA |
Sunwest Plaza | Lodi | CA |
The Village at Orange | Orange | CA |
Hilltop Mall | Richmond | CA |
Fort Morgan Main St. | Fort Morgan | CO |
Glenwood Springs Mall | Glenwood Springs | CO |
St. Vrain Centre | Longmont | CO |
Broadway Plaza | Sterling | CO |
Connecticut Post Mall | Milford | CT |
Jacksonville Regional Shopping Center | Jacksonville | FL |
Palatka Mall | Palatka | FL |
Dublin Mall | Dublin | GA |
Macon Mall | Macon | GA |
Milledgeville Mall | Milledgeville | GA |
Gateway Plaza | Thomasville | GA |
Tifton Mall | Tifton | GA |
Downtown Decorah | Decorah | IA |
Crossroads Mall | Fort Dodge | IA |
Penn Central Mall | Oskaloosa | IA |
Quincy Place | Ottumwa | IA |
Snake River Plaza | Burley | ID |
Eastland Mall | Bloomington | IL |
Fulton Square | Canton | IL |
Village Square Mall | Effingham | IL |
Freestanding | Macomb | IL |
Peru Mall | Peru | IL |
Northland Mall | Sterling | IL |
Centerpointe of Woodridge | Woodridge | IL |
FairOaks Mall | Columbus | IN |
Connersville Plaza | Connersville | IN |
Huntington Plaza | Huntington | IN |
Jasper Manor Center | Jasper | IN |
Logansport Mall | Logansport | IN |
Chanute Square | Chanute | KS |
Downtown Great Bend | Great Bend | KS |
Hutchinson Mall | Hutchinson | KS |
Freestanding | Lawrence | KS |
Winfield Plaza | Winfield | KS |
Cortana Mall | Baton Rouge | LA |
Park Terrace | DeRidder | LA |
North Shore Square | Slidell | LA |
Berkshire Mall | Lanesborough | MA |
Easton Marketplace | Easton | MD |
Rockland Plaza | Rockland | ME |
Lakeview Square Mall | Battle Creek | MI |
Delta Plaza | Escanaba | MI |
Westshore Mall | Holland | MI |
Copper Country Mall | Houghton | MI |
Birchwood Mall | Kingsford | MI |
Midland Mall | Midland | MI |
Cascade Crossings | Sault Ste. Marie | MI |
Central Lakes Crossing | Baxter | MN |
Five Lakes Centre | Fairmont | MN |
Faribo West Mall | Faribault | MN |
Irongate Plaza | Hibbing | MN |
Hutchinson Mall | Hutchinson | MN |
Red Wing Mall | Red Wing | MN |
Downtown Thief River Falls | Thief River Falls | MN |
Freestanding | Winona | MN |
Maryville Center | Maryville | MO |
Leigh Mall | Columbus | MS |
Southgate Plaza | Corinth | MS |
Greenville Mall | Greenville | MS |
Bonita Lakes Mall | Meridian | MS |
Oxford Mall | Oxford | MS |
Capital Hill Mall | Helena | MT |
Sidney Main Street | Sidney | MT |
Albemarle Crossing | Albemarle | NC |
Boone Mall | Boone | NC |
Eastridge Mall | Gastonia | NC |
Blue Ridge Mall | Hendersonville | NC |
Monroe Crossing | Monroe | NC |
Becker Village Mall | Roanoke Rapids | NC |
Prairie Hills Mall | Dickinson | ND |
Buffalo Mall | Jamestown | ND |
Downtown Wahpeton | Wahpeton | ND |
Fremont Mall | Fremont | NE |
Downtown McCook | McCook | NE |
Platte River Mall | North Platte | NE |
Rio Grande Plaza | Rio Grande | NJ |
The Boulevard | Las Vegas | NV |
Dunkirk-Fredonia Plaza | Dunkirk | NY |
Westfield Sunrise | Massapequa | NY |
Palisades Center | West Nyack | NY |
Findlay Village Mall | Findlay | OH |
New Towne Mall | New Philadelphia | OH |
Richmond Town Square | Richmond Heights | OH |
St. Mary's Square | St. Marys | OH |
Altus Plaza | Altus | OK |
Ne-Mar Shopping Center | Claremore | OK |
Ponca Plaza | Ponca City | OK |
Pioneer Square Shopping Center | Stillwater | OK |
Astoria Downtown | Astoria | OR |
Grants Pass Shopping Center | Grants Pass | OR |
La Grande Downtown | La Grande | OR |
Downtown Pendleton | Pendleton | OR |
The Dalles Main Street | The Dalles | OR |
Columbia Mall | Bloomsburg | PA |
Clearfield Mall | Clearfield | PA |
King of Prussia Mall | King of Prussia | PA |
Philadelphia Mills | Philadelphia | PA |
Bradford Towne Centre | Towanda | PA |
Lycoming Mall | Pennsdale | PA |
Willow Grove Park | Willow Grove | PA |
Citadel Mall | Charleston | SC |
Town 'N Country | Easley | SC |
Palace Mall | Mitchell | SD |
Northridge Plaza | Pierre | SD |
Watertown Mall | Watertown | SD |
Yankton Mall | Yankton | SD |
Greeneville Commons | Greeneville | TN |
Knoxville Center | Knoxville | TN |
County Market Place | Union City | TN |
Athens Village Shopping Center | Athens | TX |
Borger Shopping Plaza | Borger | TX |
Heartland Mall | Early | TX |
El Paso Downtown | El Paso | TX |
Marshall Mall | Marshall | TX |
McAllen Downtown | McAllen | TX |
University Mall | Nacogdoches | TX |
King Plaza Shopping Center | Seguin | TX |
Bosque River Center | Stephenville | TX |
New River Valley Mall | Christiansburg | VA |
Tanglewood Mall | Roanoke | VA |
Pilchuck Landing | Snohomish | WA |
Pine Tree Mall | Marinette | WI |
Marshfield Mall | Marshfield | WI |
Richland Square Shopping Center | Richland Center | WI |
Rapids Mall | Wisconsin Rapids | WI |
Foxcroft Towne Center | Martinsburg | WV |
Downtown Sheridan | Sheridan | WY |
Source: Source: JC Penney