JCPenney to pare down store fleet
February 24, 2017,
Plano, Texas – Add JCPenney to the list of retailers who’ve decided they have more stores than they need in the age of e-commerce.
Penney announced this morning it will close 130-140 stores over the next few months. Also on the block: a distribution center in Lakeland, Fla., and the retailer’s supply chain facility in Buena Park, Calif. The latter will be relocated.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” said chairman and ceo Marvin Ellison.
He noted that 75% of Penney’s e-commerce orders touch a physical store in some way – including ship from store or in-store pickup for online orders. Stores remain an important ingredient in JCPenney’s strategy, he added.
“It is essential to retain those locations that present the best expression of the JCPenney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pick up, exchanges and returns," said Ellison.
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