JCPenney announced today its plans to close two distribution facilities and 130-140 stores over the next few months. 

  • JCPenney to close stores, distribution centers in 2017
  • Closures part of company's plan to return to profitability
  • Distribution center in Lakeland to close in June

The retail company said the closures are part of their plan to optimize retail operations, advance growth, and drive profitability. 

"We believe closing stores will also allow us to adjust our business to effectively compete against 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. 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," said Marvin R. Ellison, chairman and chief executive officer of JCPenney.

A distribution center in Lakeland will close in early June and operations will transfer to the company's logistic facility in Atlanta, as part of a strategic effort to streamline store support services. 

Associates impacted by the store and distribution center closures will receive separation benefits, including assistance identifying other employment opportunities and outplacement services such as resume writing and interview preparation. 

Some employees will also be eligible for the voluntary early retirement program. 

The company plans to release a full list of planned closures in mid-March. Nearly all impacted 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. Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers," said Ellison. "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."