RETAIL stores nationwide are struggling, coping with the rise of online shopping, declining foot traffic at brick-and-mortar locations, and inflation-weary, cash-strapped consumers. The latest retail giant to face store closures is JCPenney, as the once-booming department store chain , facing declining sales and struggling to entice new customers, has continued to shutter locations nationwide. In the 2000s, JCPenney began experiencing stagnant or declining sales.
Other major retailers, especially discount stores like Target and Walmart , continued to expand and entice customers. Meanwhile, online shopping began growing at a rapid rate, leading to the decline of malls and brick-and-mortar retailers nationwide. Covid-19 proved to be the "final nail," with "virtually all of its stores closed amid a nationwide lockdown," as reported by Britannica Money .
Most of JCPenney's store closures began after the company filed for Chapter 11 bankruptcy protection in May 2020. That same month, JCPenney "began a store optimization strategy to better position the Company for sustainable, profitable growth." This ultimately led to 175 store locations closing nationwide, starting in 2020 and through 2021.
Even after being bought out of bankruptcy at the end of 2020, JCPenney continued to face declining foot traffic and sales, at retail stores and online. JCPenney's latest Q4 net sales dropped to 2.3 billion, a 5.
9% year-over-year decline, while the chain's Q4 net income fell 8.9% to $41 million.
