Those in love with the retail department store, JCPenney are not surprised but also still on the edge of their seats following the announcement that JCPenney has planned to close over 100 of its stores across the nation. It is being predicted by analysts that other big retailers will be following suit before the year has come to an end.
The reason behind the closing is the growth of online retailers.
Gordon Gough of Ohio Council of Retail Merchants doesn’t believe big box retailers have lost their purpose.
Gordon Gough, who is a part of the Ohio Council of Retail Merchants commented, “Consumers still want to feel and touch certain items is on line shopping going to be bigger and bigger sure but brick and mortar will still have a valuable place.”
With JCPenney’s making the decision to close, that means the company will save about $200 million. The stores that are on the chopping block, are the ones who have not reached sales goals. The company has sent out a request to its employees for voluntary retirement, 6,000 employees to be exact.
JCPenney’s decision comes after competitors like Sears, Kmart and Macy’s who have closed 218 stores between them nationwide.
Now don’t be worried because the closing of the stores, doesn’t mean the brand will come to an end. The company has reported outperforming rivals: Kohl’s, Nordstrom, and Macy’s.
With online retailers like Amazon, who saw a revenue growth of $100 billion over the past 10 years, it’s having an impact on retailers like JCPenney’s.
The retailer is hoping to become more competitive with the online market. JCPenney’s is preparing to give its employees in the stores mobile devices that will enable them with the capability to check out shoppers who are online who have selected to pick up the orders in the store.