JC Penney announced it will be closing 138 stores and a supply chain facility in Lakeland, FL. The retailer explained the closings were strategically chosen to cut costs in order to focus growing sales at its best-performing locations. Texas and Minnesota were the hardest hit, with 9 and 8 store closures, respectively.
“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” Penney CEO Marvin R. Ellison said in February. “It is essential to retain those locations that present the best expression of the J.C. Penney brand and function as a seamless extension of the omni-channel experience through online order fulfillment, same-day pick up, exchanges and returns.”
What will be the impact to Sephora Inside JC Penney stores? Today there are Sephora locations in over 574 JC Penney stores across the US. Using a smaller square footage footprint than a standard Sephora cosmetics store, each one is located in the middle of a JC Penney store and features the Sephora branding and beauty product assortment. This has been an extremely successful venture for JC Penney and Sephora. Comparing the Sephora Inside JC Penney store list to the list of closings reveals a very small impact to this partnership, with only 5 of the closing stores having a Sephora inside: one each in CT, IL, and MI and two stores in PA.
Sources: Chain Store Age, Sephora.com