By Arlenys Tabare
Jun 19, 2024, 2:52 PM EDT
The United States department store chain, JCPenney announces store closures for this year due to decline in discretionary spending by consumers and the transition that the market has been making to online sales for some years.
High competition with major retailers and stagnant sales are other factors that have been putting pressure on the company to the grand closing of this year after navigating through quite turbulent times, since it filed for Chapter 11 bankruptcy protection in 2020.
Between 2020 and 2021, JCPenney had to close 175 stores nationwide, while continuing to face strong obstacles; However, financial problems led to sales declining and net income falling 8.9%.
Despite the financial difficulties, in a statement a JC Penney spokesperson had expressed that “customers continue to deal with economic uncertainty and seek value more than ever. We remain optimistic about a recovery in the second half and we are well positioned to continue providing value to our customers year-round while that happens,” he said.
But, of the 2,000 locations they had throughout the country, According to the company, there were 846 left in 2020 after multiple closures. However, there are currently 660 locations remaining operational across the United States. This year’s closures will occur in Alabama, Texas, Maine, Maryland.
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