JCPenney Announces Florida Store Closings

LAKELAND, FL — Tampa Bay area residents concerned JCPenney might close local stores as part of the company’s restructuring can breathe a sigh of relief. The major retailer has announced the 138 stores slated for closing later this year with none in the region on the list. Even so, two locations in Florida, along with the Lakeland distribution center, will shutter in the coming months.

JCPenney announced its plans to scale back brick-and-mortar store locations in February. A listing of the affected stores was not made available until Friday, March 17.

The move is hoped to help JCPenney better compete in the changing marketplace, CEO Marvin R. Ellison said in a February statement.

“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” Ellison said.

Florida’s two impacted stores are located at the Palatka Mall and Jacksonville Regional Shopping Center, the Boston Globe reported on Friday. Liquidation is expected to begin at most of the 138 stores by mid-April. Closings should be completed over the summer, the paper reported.

The store closings are estimated to represent about 14 percent of JCPenney’s current locations, adding up to less than 5 percent of the retail giant’s total annual sales. The stores that will be targeted for closing are those that are underperforming or those that require a large capital investment to align them with JCPenney’s “new brand standard,” the statement noted.

Ellison said JCPenney plans to offer voluntary early retirement to about 6,000 affected employees. Affected employees not eligible for early retirement will receive separation benefits, including assistance in helping them find new jobs, the statement said.

Lakeland’s distribution center will close in early June with operations transferring to the company’s Atlanta facility. The company is already in the process of selling its Buena Park distribution center in California, the statement said.

While up to 140 stores will close, JCPenney said it intends to maintain a large number of brick-and-mortar locations under the restructuring.

“Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services,” Ellison said. “It is essential to retain those locations that present the best expression of the JCPenney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pick up, exchanges and returns.”

The company estimates the store closings will save it about $200 million this year. JCPenney reported annual sales of $12.63 billion in 2016, up from $12.26 billion in 2015, according to Market Watch.

Earlier this year, Macy’s also announced the closing of 68 of its store locations as the trend for department stores to move online continues. Kmart and Sears have also announced store closings over the past year.

To read JCPenney’s full February statement, visit the retailer online.

Photo by Mike Mozart via Flickr used under Creative Commons