Will JCPenny Closures Impact the Hudson Valley?
On Friday, JCPenny announced they are closing up to 140 stores. Will the growing trend of Hudson Valley retail store closures continue?
JCPenny told investors on Friday it will close anywhere from 130 to 140 stores and two distribution centers over the next few months. The closures amount to 14 percent of the company's locations. Thousands will likely lose their jobs.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” Marvin R. Ellison, chairman and chief executive officer of JCPenney, stated. “Our decision to close stores will allow us to raise the overall brand standard of the Company and allocate capital more efficiently."
The company won’t announce the planned closures until mid-March after staff is notified. Nearly all of the impacted stores will close in second quarter of 2017.
“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," Ellison said.
It’s unclear at this time how the announcement will affect the Hudson Valley JCPenny locations. Currently, the area is home to three locations: the Poughkeepsie Galleria in Poughkeepsie, Crystal Run Mall in Middletown and the Palisades Center in West Nyack.
“Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers," said Ellison. "I have a deep appreciation and respect for our associates who are on the front lines working tirelessly to serve our customers every day.”
The company said that around 6,000 eligible employees will be allowed to join a “voluntary early retirement program.”
The announcement continues a recent trend of retail stores closing their doors. In the past few months, Hudson Valley Sears, Macy's and Kmart locations closed down.