• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

by February 20, 2025
by February 20, 2025

The new year for brick-and-mortar retailers is picking up right where 2024 left off, as a slew of stalwart brands are set to shutter dozens of store locations amid shifting consumer patterns.

The latest crop of closures are being led by fabrics and crafts retailer Joann, which said this week it was shuttering 500 locations in 49 states as part of a second go-around in Chapter 11 bankruptcy reorganization.

“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,’ the company said in a statement. ‘A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”

Joann first filed for bankruptcy protection last March to address a heavy debt load, shrinking revenues and what it described as an “uncertain consumer environment.” It announced another Chapter 11 filing last month, this time with the goal of finding an entity to acquire all of its assets.

‘The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,’ it said in a release accompanying its latest filing.

Meanwhile, JCPenney separately said this week it was closing a handful of stores, with an initial batch of eight to go under depending on “expiring lease agreements” and “market changes.” 

“While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year,” the company said in a statement.

JCPenney emerged from bankruptcy in 2020; last month, it announced it was merging with the group that operates other retail brands, including Aéropostale and Brooks Brothers.

In the first nine months of its current fiscal year, JCPenney’s adjusted earnings tumbled nearly 64% to $66 million.

Those results reflect an overall physical retail environment that continues to deteriorate. According to Coresight Research, as many as 15,000 retail locations could close this year, nearly doubling the count for 2024, which were already the most since 2020, the first year of the Covid-19 pandemic.

“Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024,” Coresight Research CEO Deborah Weinswig said in a release last month. “Last year we saw the highest number of closures since the pandemic. Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted, and we continue to see a trend of consumers opting for the path of least resistance.’

She said customers are running out of patience for stores that are ‘constantly disorganized, out of stock, and that deliver poor customer service.’

‘We have seen Shein and Temu capture market share as consumers choose to shop online to save time, money, and avoid frustration,’ she said.

In the first weeks of 2025, Coresight was already tracking about 30% fewer openings and more than triple the number of closures compared with the same period last year.

Other closures announced late last year or planned for 2025 include Party City, Big Lots, Kohl’s and Macy’s.

This post appeared first on NBC NEWS

0 comment
0
FacebookTwitterPinterestEmail

previous post
Tesla’s law firm drafts Delaware bill that could salvage Musk pay package
next post
Lloyds share price climbs despite 20% profit drop: what analysts are saying

Related Posts

GMS stock jumps 29% on takeover interest from...

June 20, 2025

Japan’s rice price surge: what’s driving it and...

June 20, 2025

Foxconn and Nvidia to deploy humanoid robots in...

June 20, 2025

US stocks climb higher at open: Dow jones...

June 20, 2025

Apollo backs £4.5bn loan for delayed Hinkley Point...

June 20, 2025

Audi weighs $4.6 billion US plant amid tariff...

June 20, 2025

Tesla stock gains ahead of robotaxi launch: analyst...

June 20, 2025

BofA raises STOXX 600 target amid resilient global...

June 20, 2025

XRP price stuck under $3: can it finally...

June 20, 2025

Elon Musk confirms Tesla Robotaxi pilot launching in...

June 20, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Despite Tariffs, Inflation Remained Low in May

    June 27, 2025
  • PBS and NPR: A Free Press Doesn’t Need a Government Budget Line 

    June 27, 2025
  • Trump v Powell: The Credibility Cost of Politicized Monetary Policy

    June 27, 2025
  • Consumer IoT Products are Priced 44% Higher on Average Than Similar Non-Connected Products

    June 27, 2025
  • Morse Micro Wi-Fi HaLow Technology Receives Matter Certification

    June 27, 2025
  • Nordic Semiconductor acquires Memfault, launches the first complete chip-to-cloud platform for lifecycle management of connected products

    June 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,642)
  • Editor's Pick (171)
  • Investing (185)
  • Stock (1,062)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Asia-Pacific markets mixed as Japan inflation data,...

February 21, 2025

Africa to drive 20% of global LNG...

April 29, 2025

Brazil’s Méliuz joins Bitcoin trend, buys 45.72...

March 6, 2025