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Photo: iStock / ablokhin
JCPenney is planning to close eight stores in the U.S. by the middle of 2025, as consumers continue to gravitate online for their preferred mode of shopping.
According to Axios, the department store chain will be shuttering one store in each of eight states — California, Colorado, Idaho, Kansas, Maryland, North Carolina, New Hampshire and West Virginia. In total, JCPenney has more than 650 locations across the U.S.
In January, JCPenney merged with the SPARC Group, the parent company for Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica. JCPenney told Axios that its store closures are not related to restructuring from that merger, instead blaming "market changes," in addition to expiring lease agreements at a handful of locations.
The recent struggles brick-and-mortar retailers have faced are expected to continue in 2025, with Coresight Research projecting at least 15,000 store closures across the sector by the end of the year, more than double 2024's total of 7,325. Among that group is JCPenney competitor Macy's, which is closing 66 stores in 2025, as part of a plan to shutter a third of its locations by the end of 2026. Other companies planning mass closures this year include Party City, Kohl's and Big Lots.
According to Statista, revenue in the e-commerce market is projected to reach $1.34 billion in 2025, with online sales expected to show an annual growth rate of 8.22% in the next four years, resulting in a projected market volume of $1.84 billion by 2029.
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