Penney details stores marked for closing
The ax has fallen: J.C. Penney has released the list of 138 stores it plans to close.
On Feb. 24, the retailer announced it would close 138 stores, along with one supply chain facility in Lakeland, Fla., as it looks to cut costs and focus on growing sales at its best-performing locations. Texas, with nine stores slated to close, and Minnesota, with eight, were the states hit with the hardest. While most of the stores closing are in smaller market, the list includes several higher-profile locations, including the Penney at Palisades Center in West Nyack, New York, and the one at King of Prussia mall, in King of Prussia, Pa.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” Penney CEO Marvin R. Ellison said in February. “It is essential to retain those locations that present the best expression of the J.C. Penney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pick up, exchanges and returns.”
Most of the stores will close in June, Penney said on Friday, and the liquidation process in most will start on April 17.
Approximately 5,000 positions will be impacted by the closings. Penney said is trying to relocate certain “leaders” and will provide outplacement support services for eligible associates.
To see the list of store closings click here.
JLL names new West Coast leasing VPs
Jones Lang LaSalle has announced the hiring of two new vice presidents to handle leasing of third-party-managed retail properties in West Coast markets.
Jonathon LaChance joins JLL from the Lightstone Group, where he specialized in transitioning pure-play online retailers into the brick-and-mortar world. He served as director of leasing and brand curator at bio-nyc.com’s first location in the Chelsea neighborhood of Manhattan. As a senior leasing rep at Rouse, he was responsible for the redevelopment leasing of San Francisco Bay-area malls.
Bob Dishler returns to JLL from four years at GGP, where he leased assets in California, Idaho, Utah, Washington, and Wyoming. He will oversee Rogue Valley Mall and new-to-portfolio assets, while Lachance will handle Salem Center in Oregon and the Palladio at Broadstone and Hilltop Mall in California.
JLL is the third-party property manager for more than 1,000 U.S. retail centers.
Off-pricers in big expansion push
Forget about online. The biggest threat to Macy’s and other department store retailers is coming from bricks-and-mortar.
Speaking at a recent conference in New York City, Macy's CFO Karen Hoguet said off-price retailers have proven a bigger long-term challenge to the company than the Internet, CNBC reported.
Three leading off-price brands — TJX Cos., Burlington and Ross — plan to open a combined total of nearly 300 U.S. stores this year, according to the report.
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