JCPenney Announces Plans to Close 130-140 Stores Nationwide
The parent company of another local Sioux Falls business has announced that is closing numerous locations.
Following in the footsteps of such retail giants as Sears/Kmart and Macy's, as well as restaurants Noodles & Company and Outback, JCPenney has announced that it will be closing 130-140 stores over the next few months.
JCPenney did not release a list of the stores to be closed and we do not know if the closures affect stores in Sioux Falls or South Dakota.
JCPenney said it was closings the brick and mortar stores to better compete in the online retail world. Marvin R. Ellison, chairman and chief executive officer of JCPenney, explained:
We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers. 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. 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 said that affected approximately 6,000 employees will be given the option of entering the company's Voluntary Early Retirement Program. The remaining effected employees will receive "separation benefits, which includes assistance identifying other employment opportunities and outplacement services such as resume writing and interview preparation."
I have a deep appreciation and respect for our associates who are on the front lines working tirelessly to serve our customers every day. Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers. While any actions that reduce or exclude our presence in communities across the country is always difficult, it is essential that JCPenney continues to evolve in order to achieve long-term growth and profitability and deliver on shareholder value.
We will update this story once a list of stores is released.