Update: Employees at the Oxford J.C. Penney location confirmed a CNBC report that outgoing stores will close later than originally announced. The 138 locations were set to begin liquidation on April 17, but will now begin on May 22. The official closing of the stores has been pushed back from June to July 31.
Citing improved sales since the announcement, J.C. Penney spokeswoman Daphne Avila told CNBC that this type of situation is common when stores begin the process of downsizing.
“This is not an uncommon response when you announce a store closure. Local shoppers will come out for a variety of reasons — some out of nostalgia and some who are just looking for a great deal,” Avila said.
Our original report on the closing of the Oxford J.C. Penney can be read below.
Back in March, a list of 138 stores closures was announced by J.C. Penney. Among the department store closures will be the location here in Oxford, which currently resides in the old Oxford Mall shopping center. Over 900 locations will remain open, but the Oxford location is part of a company-wide downsize to focus their efforts on stores that bring in more revenue.
A release from the company reads: “Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity. Once cycled, these closures are expected to be net income neutral.”
The 138 closing locations makeup 13 percent of J.C. Penney’s portfolio but account for just five percent of total annual revenue and zero percent of its net income.
Low sales combined with the increasing amount of online shopping taking place, the chain found it to be more cost-effective to enhance their online presence while keeping high traffic stores open.
“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” the release said. “It is essential to retain those locations that present the best expression of the J.C. Penney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pickup, exchanges and returns.”
Four other Mississippi locations will close including stores in Greenville, Meridian, Corinth and Columbus.
The closing locations will begin liquidation on April 17, which will see sales throughout the store. The doors will close for the final time in June 2017.
For the full list of store closures, click here.
Steven Gagliano is a writer for HottyToddy.com. He can be reached at email@example.com.
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