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Fate Of Local JCPenny Uncertain As Retailer Plans Closures

JCPenney recently announced 130-140 stores across the country will be closed over the next few months.

According to a press release from the retailer, the company will close not only the stores, but also two distribution facilities. It is unknown if the closings will impact stores in Chautauqua Mall or Dunkirk.

“We understand that closing stores will impact the lives of many hard working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates,” said Marvin R. Ellison, JCPenney chairman and chief executive. “By coordinating the timing of these two events, we can expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures.”

He said the store closures will also allow the business to compete with the “growing threat of online retailers.”

“Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services,” Ellison said. “It is essential to retain those locations that present the best expression of the JCPenney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pick up, exchanges and returns.”

He said even with a reduced store count, the company is positioned to deliver a differentiated department store model that meets the expectations of a digital world.

The total of store closures is approximately 13 to 14 percent of the company’s current footprint. Annual savings are estimated at about $200 million as a result of the downsize.

JCPenney plans to release a full list of closures in mid-March after all personnel impacted are notified. Most stores are expected to close in the second quarter of 2017.

“I have a deep appreciation and respect for our associates who are on the front lines working tirelessly to serve our customers every day,” Ellison said. “Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers.

While any actions that reduce or exclude our presence in communities across the country is always difficult, it is essential that JCPenney continues to evolve in order to achieve long-term growth and profitability and deliver on shareholder value.”

JCPenney currently has over 1,000 store locations in the U.S. and Puerto Rico.

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