MANCHESTER, NH – JC Penney Company on Friday announced it would be closing 130-140 retail stores over the next few months. No immediate word about the fate of the nine JC Penney stores in New Hampshire, including the Mall of New Hampshire store in Manchester.
The company, based in Plano, TX, said it was “implementing a plan to optimize its national retail operations as part of the Company’s successful return to profitability.”
Under the plan, the company will close the stores along with two distribution centers in an effort to “align the company’s brick-and-mortar presence with its omnichannel network,” to boost revenue.
The Company plans to release a full list of planned closures in mid-March pending notification of all affected personnel. Nearly all stores affected by the downsizing plan are expected to close in the second quarter of 2017.
“We understand that closing stores will impact the lives of many hard working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates. By coordinating the timing of these two events, we can expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney.
“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,” said Ellison.
As a result of the store actions, JCPenney will close a distribution center located in Lakeland, Fla. in early June, at which time operations will transfer to the Company’s logistics facility in Atlanta as part of a strategic effort to streamline store support services. The Company also is in the process of selling its supply chain facility in Buena Park, Calif. in an effort to monetize a lucrative real estate asset.
Eligibility for the Voluntary Early Retirement Program (VERP) will generally include home office, stores and supply chain personnel who met certain criteria related to age and years of service as of Jan. 31. Approximately 6,000 associates are eligible for the program. The Company’s qualified pension plan will remain in a well-funded status post VERP.
“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,” said Ellison. “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.”
You can read the company’s full statement here.
