Retail Watchers

buckguy wrote: ↑February 4th, 2023, 6:23 am During the prime store closure period of the year (low inventory, fewer people paying attention), they closed 3 stores, all in small markets. It's probably the least significant store closing news from them in years--so few stores and they continue the theme of continuing the departure from small markets.

Broadly speaking retail store closure activity so far in 2023 has been much lower than expected in my opinion.

We do have some chains like Rite Aid and Bed Bath and Beyond with the ongoing closures, but some of the suspects I expected mass store closure announcements from, those have yet to materialize.

I am sure many chains planned closures, but the landlords probably gave them a deal on rent to make them stay. The JCPenney at Sunvalley Mall in Concord, California threatened to leave a couple of years ago, but the mall made JCPenney a deal.

The landlords are afraid right now. If stores close, the malls could be in danger of closing as well. Previously mall owners in California thought that they could just convert to condominiums, but right now tons of condominiums sit empty. No one wants to buy them.

The city that I live in has demolished so many stores and restaurants to build tall condo towers. They are mostly empty right now. These ugly condo towers just sprouted out here in the suburbs and they sit empty. People want houses with yards. Why pay almost a million dollars for a tiny condo when you can get a full sized house?

The old Longs Drugs Flagship in Walnut Creek, California was supposed to be demolished for condos, but CVS is still limping along. The CVS even remodeled recently. This CVS is confident that it will not get kicked out for a long time.

Retail is profitable now for landlords. Condo conversions are a bad investment right now.

Another closure has been announced in Austintown, Ohio:

https://www.wkbn.com/news/local-news/jc ... he-valley/

So far this year, it seems like the small markets are the ones JCPenney is closing.

It's a small store in secondary shopping area, originally built for Strouss' which was the local May chain. I'm surprised it didn't close long ago.

Due to a required filing with the bankruptcy proceedings and creation of a real estate trust, the Dallas Morning News got a peek into JCPenney's financials, separate from their mall real estate and brand owning parents.

Shout out to Maria Halkias for even thinking of looking into this direction. It was a good one.
JCPenney returns to its roots to shake retail 'road kill' map
Yes, the chain remains on message of "we are working to retain our current customer."

JCPenney posted a profit of $173 million on revenue of $5.44 billion, down from a profit of $312 million on sales of $5.58 billion in the same months of 2021, according to a January filing. Rosen said men’s and women’s apparel were strong. Excluding beauty, sales were flat as consumers were hit by inflation.

Honestly they seem to be a stronger mid-tier department store than Kohl's at this point. At least JCPenney seems to finally know what it is doing.

The fact that they are profitable is interesting.

They have clearly stabilized their operation. I still don't think they are doing very well and don't think what they are doing will work long term.