JCPenny made a huge announcement this week as they will be closing stores across the country. The company blamed “the growing threat of online retailers” as a major reason for its decision.
The retail store announced they will be closing 100 stores but no word on if the two remaining stores in Columbus will be on the chopping block.
Here’s what JCPenney’s closings mean:
- 13-14 percent of all stores will close saving the company $200 million
- It says stores that close are ones that have underachieved or need cash to meet new standards
- The company is asking for voluntary retirements of 6,000 people and will suspend cash contributions to its pension plan
JCPenny is not the only retail store struggling to keep up with the online competition. Macy’s, Kohls, and Nordstroms have been underperforming and been closing stores nationwide. The only upside for JCPenny is that they outperformed these retail giants.
In order to compete, JCPenny is moving towards optimizing their efforts in the digital space and have worked out a way to incorporate mobile devices to help online shoppers pick up their online purchases.