JCPenney Closing One Maryland Store

EASTON, MD — One Maryland location is among 138 JCPenney stores closing nationwide this year.

The JCPenney store in the Easton Marketplace in Easton is the lone Maryland location included in the coming shutdown.

The company plans to maintain a large number of brick-and-mortar locations under the restructuring, including the shop at the White Marsh Mall.

“Maintaining a large store base gives us a competitive advantage in the evolving retail landscape," CEO Marvin R. Ellison said in a statement. Stores offer personalized beauty products, special sizes and affordable private brands, he said.

The CEO said that the locations selected to remain in business were model stores.

“It is essential to retain those locations that present the best expression of the JCPenney brand..." Ellison said in a statement.

He noted online order fulfillment, same-day pick up, exchanges and returns were critical services.

The Texas-based company announced last month it was closing brick-and-mortar stores and several distribution centers across the country to better compete in a changing marketplace where online shopping has become common.

"We are pleased with the double-digit growth of jcpenney.com and how leveraging our brick-and-mortar locations is enabling us to offset the last-mile delivery cost," the company said in a statement.

“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” Ellison said last month.

The 138 stores slated for closure are estimated to represent about 14 percent of JCPenney’s current locations, adding up to less than 5 percent of the retail giant’s total annual sales. The stores targeted for closing were underperforming or would require a large capital investment to align them with JCPenney’s “new brand standard,” according to a statement from the company.

JCPenney said liquidation at the 138 stores closing will begin April 17. Most of the affected stores will shut their doors in June.

The closings will affect a reported 5,000 jobs nationwide.

The company said it is working to relocate leaders and provide outplacement support services for eligible employees.

The company estimates the store closings will save it about $200 million this year. JCPenney reported annual sales of $12.63 billion in 2016, up from $12.26 billion in 2015, according to Market Watch.

— By Patch editors Deb Belt and Sherri Lonnon

Photo by Mike Mozart via Flickr used under Creative Commons.