JCPenney confirms store closures in 8 states – These are the stores affected by the U.S. closures in 2025

JCPenney has announced upcoming store closures across eight states, unrelated to its recent merger with Catalyst Brands. As the retailer faces declining sales due to macroeconomic challenges, it has decided to shutter several locations by mid-2025. While the company states these closures represent less than 2% of its overall store count, the decision signals ongoing struggles in the retail sector.

Reasons behind JCPenney’s store closures

JCPenney has cited multiple factors contributing to its decision to close stores, including economic challenges and shifting consumer behavior. Key reasons include:

• Declining Sales: The retailer’s financial reports highlight a drop in revenue, largely attributed to macroeconomic pressures and evolving shopping habits.
• Market Changes: Some locations have become less profitable due to changing demographics, local economic shifts, and decreased foot traffic.
• Lease Expirations: JCPenney has stated that store closures sometimes occur due to lease agreements ending and not being renewed.
• Retail Industry Trends: The broader retail landscape has seen an increase in closures, with an estimated 15,000 stores shutting down in 2025—more than double the 7,325 expected in 2024.

Which JCPenney locations are closing?

According to a report from MSN, the following JCPenney locations are set to close by mid-2025:

California

• San Bruno: The Shops at Tanforan, 1122 El Camino Real

Colorado

• Denver: The Shops at Northfield, 8568 E 49th Ave.

Idaho

• Pocatello: Pine Ridge Mall, 4201 Yellowstone Ave.

Kansas

• Topeka: West Ridge Mall, 1821 SW Wanamaker Road

Maryland

• Annapolis: Annapolis Mall, 1695 Annapolis Mall Road

North Carolina

• Asheville: Asheville Mall, 3 S Tunnel Road

New Hampshire

• Newington: Mall at Fox Run, 50 Fox Run Road

West Virginia

• Charleston: Charleston Town Center, 401 Lee Street E

JCPenney’s real estate strategy and future outlook

Beyond store closures, JCPenney’s real estate portfolio is significantly shifting. Hilco JCP, LLC, an affiliate of Hilco Real Estate, recently placed 121 JCPenney properties on the market. These properties span across 35 states and total over 16 million square feet.

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• High-Value Locations: Many of the listed properties are located in major metropolitan areas, including Austin, Miami, Houston, Los Angeles, and New York City.
• Focus on the Sunbelt Region: Approximately 50% of these properties are in high-growth Sunbelt states, reflecting a shift in retail strategy.
• Long-Term Leasing Strategy: The company is evaluating its real estate assets to optimize profitability and align with changing consumer demand.

JCPenney’s bankruptcy and merger with catalyst brands

JCPenney has faced financial challenges for years, culminating in a Chapter 11 bankruptcy filing in May 2020. The retailer was later acquired by Simon Property Group and Brookfield Asset Management Inc., helping it stay afloat.

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In January 2024, JCPenney announced a merger with retail store operator Sparc to form Catalyst Brands, a new retail giant. While the recent closures are unrelated to this merger, they highlight the company’s ongoing efforts to stabilize its operations and streamline its store footprint.