J.C. Penney Postponing Liquidation Sales, Store Closings
J.C. Penney has postponed liquidation sales and closure dates for the 138 stores it planned to shutter this year because shoppers are actually coming to the stores. "Ever since the company announced its store closure list, those stores have seen better-than-expected sales and traffic," J.C. Penney spokeswoman Daphne Avila told CNBC. "This isn't an uncommon response when you announce a store closure. Local shoppers will come out for a variety of reasons — some out of nostalgia and some who are just looking for a great deal.” The liquidation sales will now begin on May 22 instead of April 17, and closure dates have been postponed six weeks to July 31.
Total Retail’s Take: Would you look at that! The goal of the store closures is to cut costs and allow J.C. Penney to focus more on profitable stores. However, increased traffic to the stores tabbed for closure have given J.C. Penney pause. Postponing the liquidation sales and store closures will allow the department store chain to avoid margin-killing pricing, therefore increasing profits (or reducing losses) a bit more. J.C. Penney expects the store closures to save it some $200 million a year, which will help it whittle down the $4.3 billion it has in long-term debt.