Tuesday, January 13, 2015

JC Penney to close Granite Run Mall store in April; Building to be demolished by developer



JC Penney has announced its Granite Run Mall store will close in April, along with 39 other stores nationwide.

The store had been incorporated into the redevelopment plans for the Granite Run Mall property, but the developer said Thursday afternoon that with the store closing, the plan now is to demolish the building to make way for more retail space and a theater.


Michael Markman, president of BET Investments, which owns the Granite Run Mall, said JC Penney’s decision to close the store places the Granite Run Mall in a better transformational advantage.

“Initially,” he said, “we had discussed consolidating them to one floor. Now, we’ll have control of the whole space, which will allow us to retenant the whole store. It actually puts us in a better position to redevelop the mall.”

Sarah Holland, JC Penney manager, media relations and corporate affairs, said the Delaware County store will close on or about April 4.

“We continually evaluate our store portfolio to determine whether there’s a need to close or relocate underperforming stores,” she said. “Reviews such as these are essential in meeting our long-term goals for future company growth. While it’s never an easy decision to close stores, especially due to the impact on our valued associates and customers, we feel this is a necessary business decision.”

Markman expressed condolences for those employees impacted by JC Penney’s decision.

“I feel for the people who are losing their jobs,” Markman said.

Holland said associates would be assisted in finding job opportunities at nearby JC Penney locations and those who would be leaving the company would receive separation benefits.

All associates, she added, would be offered on-site career training, including resume writing, filling out applications and answering interview questions.

In Middletown, BET Investments plans to invest $100 million into the 58-acre Granite Run Mall property to create a walkable, upscale town center, including 319,000 square feet of retail space and 225 one-bedroom and 163 two-bedroom luxury residential units. Each of the residential buildings would include a spacious lobby, 9-foot ceilings, a fitness center, pool and interior parking.

Originally, JC Penney had been identified as one of three anchor stores to remain standing while the mall’s interior commercial spaces were demolished. Boscov’s and Sears are the other two that will continue to operate on-site.

Markman said BET Investments plans to demolish the JC Penney building.

“Our intention at this point is to tear down that building ... and create a store with mid-size boxes on the bottom with a theater that will open up to the rear of the building.”

This movie theater will replace the AMC Granite Run on site now.

Markman said a number of national retailers are interested in the location, adding that he could not identify them at this time.

He said BET would be meeting with Middletown Township commissioners Monday to continue discussions about the development.

For a nine-week period in November and December, JC Penney reported a 3.7 percent increase in sales growth over the same time period in the previous year. The company also reported that it anticipates fourth-quarter comparable store sales to be at the upper end of its previous guidance range of 2 to 4 percent.

At the time, Myron E. Ullman III, company chief executive officer, offered his comments in conjunction with these results.

“Our highest priority over the last year has been to restore profitable sales growth at JC Penney,” he said. “This holiday season was instrumental in that effort — and our teams delivered. I would like to thank our associates for their hard work, warrior spirit and commitment to delivering an exceptional customer experience every day.

“Customers clearly responded to our combination of great merchandise and compelling promotions this holiday season,” he continued. “We are proud of thee results, and believe the work we are doing will fuel the continued growth of our business.”

No comments:

Post a Comment