J.C. Penney said Friday it will close two Arkansas locations as part of a larger plan to shutter 138 stores nationwide in order to improve profits and adjust to the growth of online shopping.
The locations at the Military Plaza in Benton, 1512 Military Road, and at the Chickasaw Plaza in Blytheville, 301A S. Service Road, will both close, the company said in a news release. The company has 14 other stores across Arkansas that will not be affected, according to the website.
The Texas-based company announced in February its plan to shutter between 130 to 140 stores nationwide. A total of 138 stores will close, as well as one supply chain in Lakeland, Fla, Friday's release said. Another supply chain in Buena Park, Calif., will be relocated.
About 5,000 total jobs will be affected, and most of the stores will shut their doors in June.
Those 138 stores make up about 13% to 14% of the company's total stores and less than 5% of total annual sales, the release said. The locations were chosen either because they would require "significant capital" to achieve J.C. Penney's new brand standard or they provide less cash flow than the company average.
J.C. Penney is also starting a voluntary early retirement program for about 6,000 eligible employees, the release said.
“Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers,” Marvin R. Ellison, chairman and CEO of J.C. Penney, stated in the release.