JCPENNEY has confirmed a significant expansion in its operations after announcing closures in four states.
The shopping center retailer has been trying to recover from financial problems since the 2010s.
With the growing popularity of e-commerce options and online ordering through giants like Amazon, some brick-and-mortar stores have started to take hits.
JCPenney was one of them – and after the devastating blow to personal shopping caused by the coronavirus pandemic, it filed for bankruptcy in May 2020.
Around 175 store closures followed, while two companies – Brookfield Asset Management and Simon Property Group – purchased the retailer in September of the same year.
Since then, JCPenney has continued efforts to restructure and eliminate more underperforming stores, even aiming to open new locations in the future and expand its online offerings.
Read more about store closures
In August last year, the company confirmed that it would conduct a $1 billion reinvestment strategy to improve its business prospects.
ONE-TIME UPDATE
Plans to that end may be closer to being put into practice after JCPenney confirmed that $40 million of the $1 billion investment would be put into its distribution center in Reno, Nevada, for a Press release.
The center is a whopping 1.67 million square feet, and the upgrades promise to improve the efficiency of online ordering through what’s known as the Joey Pouch rating system.
New packaging equipment and an automated sorter with label printing capabilities are part of the technologically advanced system, along with updated software and several other unique features.
JCPenney executives promised that employees’ jobs at the Reno facility would not be lost and would potentially improve by offering better staffing flexibility due to the Joey Pouch rating system.
JCPenney CEO Marc Rosen emphasized in the press release that the distribution center change would drastically improve the brand’s deliveries and logistics.
“We look forward to experiencing its impact for our customers, associates and company as we honor our commitment to making every day count for our customers,” said Rosen.
“When we announced our billion-dollar investment strategy last year, this is exactly the type of upgrade we envisioned for our supply chain.”
TURNING OFF
While the supply chain upgrade is exciting for JCPenney and its customers, the brand confirmed at least four store closures in June across four states.
Alabama, Texas, Maine and Maryland will see JCPenney store closures in popular malls.
Why are JCPenney stores closing?
JCPenney made headlines after it was reported that the chain will close several stores in the coming months.
The department store chain, which was already expanding, has faced falling sales and has struggled to attract new customers.
The emergence of online shopping has reached physical stores and shopping centers.
When the Covid-19 pandemic struck, retailers, including JCPenney, suffered another blow that proved fatal for many.
The retailer’s financial difficulties came to a head in May 2020 when it filed for bankruptcy protection with debts of about $4 million.
The subsequent restructuring saw a series of closures as the retailer embarked on a new strategy for sustainable growth.
175 stores closed across the country between 2020 and 2021.
However, even after being purchased, the company continues to struggle with sales, especially as consumers tighten their belts due to the high cost of living and inflation.
JCPenney’s latest fourth-quarter net sales fell to $2.3 billion, a 5.9% year-over-year decline, while net income fell 8.9% to $41 million.
Stores in Alabama, Texas and Maine will cease operations by September 22, 2024, according to the company.
The Maryland store will remain open until an undetermined date in 2025.
The US Sun has compiled a detailed list of JCPenney closing locations.
About 663 stores remain in the United States when the brand had more than 800 before the pandemic.
Other similar retailers have suffered serious blows this year.
Express filed for bankruptcy in April with plans to close more than 100 locations.
Rue 21 also filed for Chapter 11 and sold all of its remaining assets, permanently closing its remaining stores.
This story originally appeared on The-sun.com read the full story
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