A number of brands are already looking to capitalize on JCPenney's mass store closures. Around the country, major stores are opening in JCPenney's old locations.
Hobby Lobby is looking to open in a former JCPenney store in Ukiah, California. A Jagalchi Korean food complex has opened in Daly City’s Serramonte Center, where the JCPenny used to be.
Target is looking to take over JCPenney's spot in Southeast Idaho's Pine Ridge Mall.
It comes amid news that the retailer will be closing eight stores across various states this year. The company, established in 1902 and known for selling items such as clothing, jewelry, and beauty products, has joined the growing roster of brands compelled to reduce their outlets due to challenging financial circumstances.
Full list of JCPenney's stores closing
- The Shops at Tanforan in San Bruno, California
- The Shops At Northfield in Denver, Colorado
- Pine Ridge Mall in Pocatello, Idaho
- West Ridge Mall in Topeka, Kansas
- Westfield Annapolis Mall in Annapolis, Maryland
- Fox Run Mall in Newington, New Hampshire
- Asheville Mall in Asheville, North Carolina
- Charleston Town Center in Charleston, West Virginia
Other brands facing similar predicaments include Macy's, which plans to shut down 150 branches over the next few years, and craft firm Joann, which informed customers it was ceasing operations entirely.
In addition, Walgreens has verified plans to close 500 stores, while Party City and CVS have also fallen prey to the recent wave of store closures, leaving a 'stain' on US cities. Concerns are mounting that Donald Trump's trade wars could further exacerbate the economic downturn in the coming year.
Loyal JCPenney customers expressed their disappointment on social media after the closures were announced in February. However, some have since called on their fellow shoppers to support the brand and others by making purchases in-store.
This comes as Macy's is just one among many stores shutting down, as retailers confront a 'bloodbath'.
One concerned shopper wrote: "Why are so many stores really closing? Everywhere I shop, many mall stores."
Another implored their fellow consumers: "People! We need to shop in person at our local stores! Buying online is causing stores to close! Shop in town and meet your neighbors!" An additional comment from a social media user was: "This! Shop local! ! ! Not online!" And yet another person emphasized: "Preach it daily! Keep our local stores. They support the schools and churches! We need human connections for a better society."
Regarding JCPenney's closures, a spokesperson was quoted by Axios saying, "While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year... The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes or other factors."
Coresight Research has forecasted that roughly 15,000 stores are expected to close in 2025, almost doubling the closures from last year. In a glaring disparity, only an estimated 5,800 new stores are slated to open, indicating a minor decrease from the previous year's launch numbers.
A slew of well-known retailers, such as Kohl's, Bargain Hunt, Big Lots, Walgreens, Macy's, and Starbucks, are trimming their store fleets. Some have even succumbed to Chapter 11 bankruptcy to stay afloat.
This trend further echoes the consequences of JCPenney's Chapter 11 bankruptcy declaration in May 2020, resulting in a drop from roughly 850 locations to about 650. Despite these challenging times, the company's CEO Marc Rosen remains optimistic about the prospective benefits of its tie-up with Sparc, stating the merger will empower both companies to "leverage [their] resources and best-in-class industry talent to grow [their] brands further."