JCPenney has announced it will permanently close seven of its department stores in the United States on May 25, 2025. The move is part of an ongoing restructuring strategy designed to help the company adapt to the evolving retail landscape.
JCPenney filed for bankruptcy in 2020, and since then, it has closed more than 200 stores across the country. The company has been steadily working to stabilize operations and reposition itself in a competitive market.
Strategic merger
In January 2025, JCPenney merged with several other well-known retail brands to form catalyst brands, a new conglomerate that includes Aéropostale, Brooks Brothers, and Eddie Bauer. The newly formed group is led by Marc Rosen, the former CEO of JCPenney.
Ongoing retail closures
Despite these efforts, the broader retail sector is facing steep challenges. According to a recent study by Coresight Research, roughly 15,000 stores are expected to shut down across the United States in 2025. This is more than double the 7,325 closures reported in the previous year.
These closures are attributed to factors such as declining foot traffic in shopping malls, the rise of e-commerce, and the expiration of lease agreements. A company spokesperson stated,
“The decision to close a store is never easy.”
However, isolated closures do happen from time to time due to lease expirations, changing market conditions, or other business considerations.”
The affected locations closing on May 25, 2025 are:
- San Bruno, California – The Shops at Tanforan
- Denver, Colorado – The Shops at Northfield
- Pocatello, Idaho – Pine Ridge Mall
- Topeka, Kansas – West Ridge Mall
- Newington, New Hampshire – Fox Run Mall
- Asheville, North Carolina – Asheville Mall
- Charleston, West Virginia – Charleston Town Center
Originally, the JCPenney location at Westfield Annapolis Mall in Maryland was also set to close. However, the company managed to extend its lease through August 31, 2025, temporarily halting liquidation sales at that store.
Broader retail industry trends
JCPenney’s store closures are indicative of a larger trend affecting the retail industry.
According to Coresight research approximately nearly 15,000 retail stores are projected to close in the United States in 2025, doubling the 7,325 closures reported in 2024. This surge is driven by factors such as inflation, cautious consumer spending, and increased competition from online retailers like Temu and Shein.
Major retailers, including Macy’s, Big Lots, Walgreens, and Party City, have also announced significant store closures as they navigate the challenges of the current retail climate. Despite these difficulties, some retailers like Walmart, Costco, Home Depot and Target continue to perform well by adapting to changing consumer preferences and investing in technology.
Impact on employees and customers
The closure of these JCPenney stores will affect both employees and customers. The company has committed to supporting affected associates with transition resources, including severance packages and benefits. For customers, clearance sales are ongoing at the closing locations, offering significant discounts until the final day of operation.
As JCPenney continues to adjust its business model and store footprint, the company remains focused on providing value and quality to its customers through its remaining locations and online platforms.
