In 2025, iconic American retailer JCPenney is once again in the spotlight — but not for a new launch or partnership. Instead, the company has announced the closure of seven more stores across the United States by May 25, 2025, continuing a multi-year trend of downsizing its brick-and-mortar footprint.

Although not surprising to retail analysts, this decision has reignited discussion on the evolving state of the retail sector, especially the struggles of traditional department stores in an increasingly digital-first world.

This article breaks down the latest store closures, the reasons behind them, and the broader implications for shoppers, investors, and retail trends in America.

Confirmed JCPenney Store Closures (May 2025)

The following seven stores are confirmed to permanently close by May 25, 2025:

1. The Shops at Tanforan – San Bruno, California
2. The Shops at Northfield – Denver, Colorado
3. Pine Ridge Mall – Pocatello, Idaho
4. West Ridge Mall – Topeka, Kansas
5. Mall at Fox Run – Newington, New Hampshire
6. Asheville Mall – Asheville, North Carolina
7. Charleston Town Center – Charleston, West Virginia

An eighth store, Westfield Annapolis Mall in Maryland, was also initially listed for closure. However, due to a lease extension, it will remain operational through August 31, 2025, pending further review.

Why Is JCPenney Closing These Stores?

The current closures are part of a broader strategic plan to optimize profitability and align operations with evolving customer behavior. These closures are not a signal of bankruptcy, but rather a targeted move to cut underperforming locations and improve overall efficiency.

Key reasons behind the decision:

• Declining Mall Footfall: Most of the closing stores are located in malls that have experienced substantial drops in foot traffic, driven by changing consumer habits and declining mall relevance.
• Digital Shift: Consumers are shopping online more than ever. Department stores like JCPenney — once anchored in mall culture — now struggle to compete unless they adopt omnichannel models with strong digital capabilities.
• Cost Management: Many of the closing locations were no longer economically viable. Rent, utilities, and payroll costs were outweighing the sales generated at these outlets.
• Post-Bankruptcy Realignment: Since its 2020 Chapter 11 bankruptcy filing, JCPenney has been focused on right-sizing its store portfolio. This latest move is part of the long-term restructuring initiated after its acquisition by Simon Property Group and Brookfield Asset Management, under the SPARC Group umbrella.

JCPenney’s Evolution Since 2020

JCPenney once operated over 1,000 stores across the country. As of early 2025, it maintains just over 600 operational outlets, with most located in mid-size cities and suburban hubs.

Following its acquisition, the company outlined a strategy focusing on:

• Improving the in-store shopping experience
• Developing a modern and responsive e-commerce platform
• Partnering with private labels and lifestyle brands
• Streamlining operations to eliminate loss-making units

While the pandemic accelerated closures for many retailers, it also forced JCPenney to adopt a leaner operating model that includes both physical and digital integration.

Impact on Shoppers and Employees

For customers near the affected locations, liquidation sales are already underway. Discounts range from 40% to 90%, covering categories like clothing, home goods, kitchenware, and seasonal décor.

Key points to note:

• Gift cards and coupons remain valid, even at stores marked for closure.
• Some locations may have final sale policies, so returns might not be accepted — customers should check terms before purchase.
• Store fixtures and equipment may also be part of the clearance sale.

For employees, the outlook varies. Some may be offered transfers to nearby locations, while others will unfortunately face layoffs. JCPenney has stated that it will assist employees during the transition, but the details of severance or support packages have not been publicly disclosed.

Industry Context: Is This the New Normal?

JCPenney’s ongoing downsizing is part of a larger shift across the retail industry. Department stores — once the anchor tenants of every major shopping mall — have seen their influence wane.

According to research firm Coresight, over 45,000 physical retail stores could close in the U.S. over the next five years. Chains like Macy’s, Kohl’s, Sears, and Nordstrom are all reevaluating their physical footprints in response to the e-commerce boom and changing consumer habits.

Even luxury retailers are exploring showroom-style stores and digital-first strategies to remain profitable.

Investor Takeaways

Investors should view these closures through a long-term strategic lens. While short-term revenue from these locations will drop, cost savings and operational efficiencies could support healthier margins.

Areas to monitor:

• REIT Exposure: Mall-focused REITs with JCPenney as a tenant — such as Simon Property Group — may experience marginal revenue hits, especially in smaller markets.
• Digital Expansion Metrics: The real success of JCPenney’s strategy will depend on how much growth it can generate through its website, mobile app, and fulfillment capabilities.
• Brand Partnerships: The company has shown interest in reviving its brand through collaborations. If executed well, this could help recapture younger and more fashion-forward customers.

What Does It Mean for Local Communities?

In smaller cities, JCPenney often represents one of the last remaining full-service department stores. Its closure means fewer shopping options and job losses, particularly in regions already economically vulnerable.

This has a ripple effect:

• Reduced mall traffic overall, which can hurt other tenants
• Lower tax revenue for local governments
• Increased reliance on online shopping, which may not be ideal in areas with poor logistics or delivery infrastructure

It also raises the question of what happens to the large physical spaces left behind — a problem many mall operators are still struggling to solve.

Looking Ahead: Is This the End for JCPenney?

Not yet. While the headlines may suggest decline, JCPenney is very much still in the game. The company is working toward a hybrid future where select physical stores coexist with a stronger digital presence.

It is also experimenting with new store formats, smaller footprints, and better use of customer data to personalize offerings.

What remains to be seen is whether JCPenney can execute these changes quickly and meaningfully enough to remain relevant — especially as younger generations gravitate toward digitally native brands.

Final Thoughts

JCPenney’s 2025 store closures reflect a deep and ongoing transformation within the American retail sector. This isn’t just about one chain closing a few stores — it’s about the end of an era for department store culture as we knew it.

As legacy retailers reinvent themselves, the winners will be those who embrace digital, control costs, and build loyalty in new ways. For JCPenney, this moment is pivotal — adapt fast or fade slowly.

Disclaimer

The information provided in this article is for educational and informational purposes only. It does not constitute investment advice, financial advice, or any other professional guidance. Paisonomics and the author are not responsible for any losses, decisions, or actions taken based on the content of this article. Readers are advised to conduct their own research or consult a certified financial advisor before making any investment-related decisions.