JCPenney To Shutter LI Store This Year

LAKE GROVE, NY - The JCPenney store in the Smith Haven Mall will be closing this summer, a company spokesperson confirmed.

The local department store will be closing on July 5.

"This decision is the result of an ongoing review of our store portfolio, which includes assessing locations that may not meet our required financial targets or represent an opportunity to capitalize on a beneficial real estate asset," spokeperson Dana Harrington said in a statement. "It's never easy taking actions that directly impact our valued associates and customers, however we feel this is a necessary business decision."

According to Harrington, eligible associates who do not transfer to another JCPenney location will receive separation benefits.

All impacted associates may participate in a three hour on-site career training class, at no cost to the associate, which offers tips on resume writing, answering interview questions and more.

In a press release, the company announced that total net sales for the 2018 fourth quarter decreased 9.5 percent to $3.67 billion compared to $4.05 billion for the fourth quarter last year.

As a result a total of 18 JCPenney stores across the U.S., including the Lake Grove store, will be shutting down in 2019. In addition, 9 ancillary home and furniture stores will be closing this year as well.

The company did not say what other stores are closing.

"The stores identified for closure either require significant capital, are minimally cash flow positive today relative to the Company's overall consolidated average or represent a real estate monetization opportunity," the press release reads. "Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity."