Department store chain JCPenney announced plans to rationalize its fleet of stores, closing 140 underperforming units to redirect funds into top stores and online operations. The company operates about 1,000 stores nationwide.
For its part, mall landlord PREIT said the Penney anchor at its Willow Grove Park mall, in Abington Township, Pa., will close, while 13 other stores in its portfolio will remain open. The firm is already busy marketing the space to other users, CEO Joe Coradino said on an earnings call with investors.
Penney's investors had hoped that the retailer could benefit from the store reduction plans of its rivals Sears and Macy's. The three department stores share anchor duties at several properties across the country. But it looks like specialty retailers, big-box stores and the internet will benefit in markets where all three chains are shuttering stores.
Chains such as Kohl's and Macy's are learning how to retain market share after closing stores. JCPenney hopes it can do the same.