JCPenney has announced plans to shutter eight more stores in 2025, continuing a trend of consolidation that reflects the broader struggles of traditional brick-and-mortar retail. The closures come as the U.S. retail sector faces ongoing challenges from shifting consumer habits, e-commerce growth, and economic pressures.
Retail Sector Faces Continued Contraction
The decision to close stores aligns with a wider pattern seen across the retail industry. Coresight Research estimates that around 15,000 retail stores could close in 2025, more than doubling the 7,325 closures recorded last year. Meanwhile, new store openings are projected to decline from 5,970 to 5,800.
Large retailers, including Kohl’s, Bargain Hunt, Big Lots, Walgreens, Macy’s, and Starbucks, have all announced plans to downsize their physical footprints. The retail sector continues to undergo significant shifts, with businesses adjusting to changing shopping behaviors and an increased reliance on e-commerce.
JCPenney Store Closures in 2025
The eight JCPenney locations set to close in 2025, according to Axios and business consultancy SB360, include:
California
- The Shops at Tanforan – San Bruno
Colorado
- The Shops at Northfield – Denver
Idaho
- Pine Ridge Mall – Pocatello
Kansas
- West Ridge Mall – Topeka
Maryland
- Annapolis Mall – Annapolis
North Carolina
- Asheville Mall – Asheville
New Hampshire
- Mall at Fox Run – Newington
West Virginia
- Charleston Town Center – Charleston
JCPenney has not attributed these closures to its recent merger with Sparc Group, a retail operator. The company announced in January that the two would join forces under the newly formed Catalyst Brands, which aims to leverage shared resources and expertise to strengthen its retail portfolio.
The Long-Term Outlook for JCPenney
JCPenney has been in a prolonged period of restructuring since filing for Chapter 11 bankruptcy protection in May 2020. The company has reduced its store count from around 850 locations to approximately 650. The upcoming closures reflect its ongoing efforts to streamline operations and maintain profitability in an evolving retail landscape.
Despite recent financial challenges, CEO Marc Rosen expressed optimism about the company’s direction, citing the Sparc merger as an opportunity to “leverage our resources and best-in-class industry talent to grow our brands further.”
Industry analysts remain cautious about the company’s ability to compete in a changing market. Neil Saunders, managing director at GlobalData, noted that while JCPenney’s management is making efforts to stabilize the business, progress remains difficult. “It all feels like they’re trying to run up a fast-moving down escalator right now,” he told Retail Dive in December.
This article was published in BBC.
