To absolutely no one's surprise, JCPenney announced earlier this month that it will close “underperforming” 33 stores (while still opening one in Brooklyn) this year.
The closures will result in a $65 million savings for the still-struggling retailer. And most observers expect that after a less-than-spectacular holiday season, many retailers will announce store closures in coming weeks.
The real question is what the landlords will do to replace this anchor or other major closures? With few department store opportunities left, some developers are getting inventive, including PREIT, which is losing a Penney at its Exton Square Mall in Chester County, PA. The project will be redeveloped when an existing Kmart location is recaptured in 2016.
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