Early Friday morning, 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 make up 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 pick up, 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 steven.gagliano@hottytoddy.com.
