JC Penney announcement highlights troubled times for some retailers

LAS VEGAS - JC Penney plans to shutter as many as 140 stores by June. It is unknown if any in the Las Vegas valley will be impacted.

There are five stores in Las Vegas. You will find the retailer at Meadows Mall, the Boulevard Mall, the Galleria at Sunset Mall, on Rainbow Boulevard between Alta Drive and Charleston Boulevard and on Grand Canyon, just south of Flamingo Road.

JC Penney is just the latest traditional retailer to make an announcement regarding closures. There's been a downward spiral of shopping mall stores in the past year.

JC Penney plans to offer buy outs to about 6,000 of its employees.

"I'm surprised because JC Penney has been around a long time," said shopper Mary Hickey.

The retailer is joining some of its department store rivals. They're downsizing, too, in an era where online shopping is clearly winning.

"I'm concerned because, I mean, because again, it's jobs, it's jobs and we need the jobs and we need the permanent kind of jobs," said shopper Annette Eccles.

The department store chain hasn't revealed how many jobs it'll cut.

"Especially here in Vegas, because like they're not the casino jobs, they're not the transient who come in, rent a place, work for a while and leave," said shopper Annette Eccles.

"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," said JC Penney CEO Marvin Ellison.

JC Penney expects to save $200 million in annual costs.

The cuts come amid mounting challenges for department stores across the country like Macy's and Sears.
Big box stores that are shutting their doors to shed costs.

"I'm not from here. I'm from Sharon, Pennsylvania," said shopper Amy Reeves. "And our mall is closing. Macy's and Sears are closing right now and I've seen today that 160 JC Penney's are closing. I think ours will close because there's nothing left in our mall."

Ellison says fast-fashion retailers and discounters like TJ Maxx have undermined their business.

In response, they want to overhaul their entire product. The stores that will close will be announced in mid-March.

 


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