The Wall Street Journal reports Landlords Relish—or Fear—J.C. Penney Store Closings.

Real-estate executives said J.C. Penney could announce as few as 20 or as many as 200 stores will close. Shopping center owners will also be assessing how sustainable the company’s plan is for the remaining stores.

J.C. Penney said it prefers stores between 70,000 and 90,000 square feet, a sweet spot that enables it to display all its merchandise without having excess space, say property executives who spoke with the retailer. Some stores are as big as 150,000 square feet.

As with Sears, landlords are welcoming or dreading a J.C. Penney closing based primarily on how likely they are to find a preferable replacement.

Those with better-located shopping centers are eager for J.C. Penney (and its decades-old leases) to exit so they can attract higher-paying tenants. J.C. Penney pays as little as $3 a square foot in gross rent. Landlords say that they can get more than four times the rent for some of the spaces.

But owners of struggling malls are considering rent reductions to keep the chain from leaving. The department store’s departure could also allow other mall tenants to seek rent concessions or close their stores before their leases end without penalty.

No Reason for Being

What exactly does J.C Penney offer as a reason for being?


I cannot come up with anything. More importantly, nor can the market.

J.C. Penney Monthly Chart

Image placeholder title

J.C. Penney Looks Terminal

How many stores will J.C. Penney close in 2019? That's the wrong question.

Here's the right one: Can J.C. Penney survive at all?

For whatever reason, or no reason at all, millennials and generation Z abandoned the store.

It's a store with no reason for being. Unless it finds a reason for being, and quickly, it's destined to go the way of Sears, Montgomery Ward, and Payless.

Mike "Mish" Shedlock

Retail Grinds to a Halt as 47,000 Stores Close

As stores shutter and business grinds to a halt, what are the store owners supposed to do?

Supersaturation and Store Cannibalization: McDonald’s to Close 700 Stores

McDonald’s is closing 700 stores this year, 350 of which took place first quarter. That sounds like a lot but it pales in comparison to the 32,500 stores in the chain.

Only the Strong Survive: JCPenney, Payless, LifeWay to Close 3,000+ Stores

The weak keep getting weaker. Another 3,000 stores will bite the dust and mall vacancies are at an 8-year high.

Study Says 20% of Mall Space Should Close to Achieve 2006 Productivity

One of the lingering economic debates concerns productivity growth.

Mind the Gap, It Closed Bearishly On Wednesday

The gap down on Monday filled on Wednesday, then stocks sank into the close. This was a very bearish event.

Spotlight on WHO Historical Controversies

The World Health Organization has been involved in a number of controversies over the years. Let's take a look.

Trump Threatens to Close Entire Mexican Border: Instant Recession If Carried Out

Trump threatens to close the border in a Tweet complaining "‘Mexico has for many years made a fortune off of the US".

Why Brexit Must Be Delivered (And Johnson Will Do It)

There is no question Johnson will deliver Brexit. The only question is "How?"

Arizona Senate Race Too Close to Call, Will Take Days to Determine

Republican Martha McSally leads Democrat Krysten Sinema by 15,403 votes. There are close to 600,000 early ballots.