With the monumental success of online shopping sites, many ‘brick and mortar’ businesses are feeling the pain. Last year, the one-time world’s largest toy store, Toys ‘R Us, filed bankruptcy, resulting in the closure of all of its stores in the United States.
Other lesser-known businesses continue to bite the dust on a weekly basis, but today’s announcement is sure to hit thousands of people where it hurts. One of the world’s favorite retailers is downsizing.
Mega department store J.C. Penney just announced that they are moving forward with closing additional locations, as a result of meager holiday sales numbers.
“J.C. Penney said on Tuesday it plans to close three more stores by spring, on the heels of its announcement that its sales fell during the critical holiday shopping season.”
The popular merchandise outlet said on Tuesday, “it plans to close three more stores by spring, on the heels of its announcement that its sales fell during the critical holiday shopping season.”
“In a news release, the struggling retailer revealed its same-store sales dropped 3.5 percent on an adjusted basis for the nine-week period ended Saturday.
“It’s unclear where the store locations are, although it’s expected to include more details when it reports its full fourth-quarter results on Feb. 28.”
The company, for now, is not admitting defeat but, instead, calls it a prudent business decision. The three stores targeted in the Spring are closing for one of two possible reasons. They are quick to emphasize that this move does not reflect the overall financial health of the company.
Fox Business reports, “According to the company, it’s part of a broader initiative to assess its brick-and-mortar store portfolio.
“That includes determining whether some locations don’t meet the required financial target, or if they represent a chance to capitalize on prime real estate.”
So, will your favorite J.C.P. be closing next? It’s too soon to tell, but the company is hopeful that by making these minor adjustments now, they can avoid a company-wide crisis in the future.
J.C.Penney has been one of the many long-standing businesses that are suffering from the growing pains of exploding e-commerce companies like Amazon.
“Over the past two years, J.C. Penney has struggled with lagging sales -- largely a result of the rise in e-commerce behemoth Amazon -- eventually closing 140 stores across the country.”
But Penney’s is not the only store to suffer - not by any means. Their 140 store closes in two years are a mere fraction of the 12,000 total retail locations that closed in 2018.
Stay tuned. It's not over yet...not by a long shot!