JCPenney announces closures of 130-140 stores

[wnetmacman]

In regards to the "funky P" logo, that was on a store at the Viewmont Mall in Scranton, Pa which was built around the same time as that store in the post above. That signage survived on the building until at least mid-1980 when we moved from the area. I also seem to recall a freestanding funky P on the outer sides of the second level. It was actually quite a sight to behold when it was lit up after dark. As far as I know, that store is still around today but presumably with much more current signage (or maybe not-who knows.)

Looking at Google Maps, it's using the black 1971 logo. No Funky P anywhere.

[Super S]

Supposedly, there are no plans to close the Kelso store:

http://tdn.com/news/local/jcpenney-won- ... dbbac.html
(Sorry in advance about this newspaper's very annoying multiple pop-up ads)

I find this somewhat hard to believe as there are wide open empty spaces in areas of the store. But what do I know....

[Super S]

Is this the "P" logo you're referring to? It was used on new stores in the late '60s, for sure, as I remember it at the new store at Sunvalley Mall in Concord, CA, built around '68.

The one I am talking about is here:

http://www.andrewturnbull.net/log/stuff ... g_5238.jpg

The store I am referring to has the "P" in an oval on the side of the building. On stores it usually did not have the oval. On the front it has the current logo.

[SamSpade]

So, I finally found the quote I was looking for about these closures:

either require significant capital to achieve the Company’s new brand standard or are minimally cash flow positive today relative to the Company’s overall consolidated average

. . . represent less than 5 percent of the company’s total annual sales and roughly 0 percent of net income.

(emphasis mine)
I was intrigued as stories came out about all these smaller community closures, many of these buildings were actually leases, despite being JCPenney stores for almost their entire life so far. The ones in shopping plazas or small malls I can understand, but it's surprising to me that some of these 'Main Street' locations, such as 4 of the 5 Oregon stores, were leased properties and had time on their leases.

Links to stories in Oregon or Washington about petitioning the retailer to reconsider:
Two loyal customers fight to save (Snohomish) JCPenney
JCPenney's set to close its doors (La Grande)
Business owners dismayed by closure (La Grande)
Our View: Loss of Store Difficult to Overcome (La Grande)
JCPenney to Close Downtown Pendleton Store
National Retailer A Fixture in Downtown (Astoria)
JCPenney Closure: It's Like Losing A Friend
Astoria City Council Hopes to Stop JCPenney Closure
Letter To the Editor: Stop Penney's Closure (The Dalles)

[Super S]

So, I finally found the quote I was looking for about these closures:

either require significant capital to achieve the Company’s new brand standard or are minimally cash flow positive today relative to the Company’s overall consolidated average

. . . represent less than 5 percent of the company’s total annual sales and roughly 0 percent of net income.

(emphasis mine)
I was intrigued as stories came out about all these smaller community closures, many of these buildings were actually leases, despite being JCPenney stores for almost their entire life so far. The ones in shopping plazas or small malls I can understand, but it's surprising to me that some of these 'Main Street' locations, such as 4 of the 5 Oregon stores, were leased properties and had time on their leases.

Links to stories in Oregon or Washington about petitioning the retailer to reconsider:
Two loyal customers fight to save (Snohomish) JCPenney
JCPenney's set to close its doors (La Grande)
Business owners dismayed by closure (La Grande)
Our View: Loss of Store Difficult to Overcome (La Grande)
JCPenney to Close Downtown Pendleton Store
National Retailer A Fixture in Downtown (Astoria)
JCPenney Closure: It's Like Losing A Friend
Astoria City Council Hopes to Stop JCPenney Closure
Letter To the Editor: Stop Penney's Closure (The Dalles)

One has to wonder if JCPenney (if they can somehow turn things around) could eventually open new standalone stores in some of these areas. Astoria in particular has seen a lot of new retail development nearby in Warrenton, including a new Costco, a Walmart coming, Home Depot, as well as most of the new car dealerships building new facilities. The Dalles, Pendleton, and LaGrande do not have many direct competitors and I could see a smaller version of a standalone store possibly being workable. JCPenney has been known to leave some areas and eventually return, two I know of are Nampa, Idaho and Yakima, WA.

[buckguy]

They're not exactly in a store building mode and clearly these are locations that aren't contributing to cashflow, which is something they need.

[Super S]

They're not exactly in a store building mode and clearly these are locations that aren't contributing to cashflow, which is something they need.

True, but in some instances people will shop at newer, larger stores if they have a decent selection. Some chains do build new stores even when they are struggling...JCPenney has built a number of new standalone stores in recent years. But I don't think they have built any since the Ron Johnson fiasco.

[storewanderer]

Some of those newer standalone stores are actually closing in this round of closures. I don't think those worked out too well for them.

The more I think about it, seriously, the more I think a merger with Kohl's might actually work out well for both parties here...

[Super S]

Some of those newer standalone stores are actually closing in this round of closures. I don't think those worked out too well for them.

The more I think about it, seriously, the more I think a merger with Kohl's might actually work out well for both parties here...

Maybe, maybe not. The two chains have similar , but not exactly the same, product mix. There are also many stores in close proximity to one another, and in some cases, both are anchors in malls. There would be a lot of vacant spaces and the elimination of a competitor.

It seems like in more recent mergers, the problems of one chain rub off on the other and prices don't reflect the combined stores buying power.

[rwsandiego]

Some of those newer standalone stores are actually closing in this round of closures. I don't think those worked out too well for them.

The more I think about it, seriously, the more I think a merger with Kohl's might actually work out well for both parties here...

Maybe, maybe not. The two chains have similar , but not exactly the same, product mix. There are also many stores in close proximity to one another, and in some cases, both are anchors in malls. There would be a lot of vacant spaces and the elimination of a competitor.

It seems like in more recent mergers, the problems of one chain rub off on the other and prices don't reflect the combined stores buying power.

To me, a large part of JCPenney's issues (aside from the disaster that was "jcp" and Ron Johnson) is that it has tried to be a Kohl's clone. Penney's used to sell a wide variety of merchandise and even pre-Ron Johnson began upgrading its products. It became a place when a guy like myself who clocks in at 6'4" with 37" sleeves and 37" inseam could buy a suit, a pair of jeans, or a leather jacket. The fashions were often basic, but for work or for outerwear they were fine. Then, the merchandise quality started to diminish and it was no longer on par with the house brands associated with "better" stores. Instead, it was on par with Kohls and sometimes Target. Then they shifted special sizes online, save for a few stores that continued carrying them, and their store fleet became shabby and worn-looking. There was no reason to shop there anymore.

What made me think about this was a recent occurrence when I was attending a work event. It was supposed to be business casual, but at the last minute (like the Friday before the event on Monday) it was decided we should all be in black suits or solid gray jackets and black slacks. No blue, no olive, no tan, no brown. I do not own a black suit and my gray suit is patterned. The one and only place that had a gray jacket in stock at a store in my size was, you guessed it, JC Penney. After getting to the very unkempt store, the salesperson was very helpful and we both agreed the jacket was a perfect fit. I received many compliments on the outfit. Honestly, I was surprised by the quality.

If Penney's can take that success story and replicate it across the chain, AND improve their stores, they might be able to survive and even thrive. For their sake, and the sake of their employees, I hope they can.