Nittany Mall dodged another retail-closure bullet, as J.C. Penney became the second mall anchor that will spare the College Township location in its plans to shutter stores.
Penney will close 33 underperforming stores, the retailer said. Approximately 2,000 employees will be laid off. It’s not clear whether the local store will lay off workers; however, the company said that eligible employees would receive severance packages.
Last week, Macy’s announced it would be downsizing and closing stores around the country in an effort to save $100 million annually, starting this year, according to the store. The Nittany Mall store was not on the closure list; however, it wasn’t clear whether any of the 2,500 jobs to be cut would be local.
Recently, Nittany Mall lost retailers The Gap and Gap Kids to the Trader Joe’s Plaza on North Atherton Street.
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Among the Pennsylvania Penney stores to be closed in early May are in Exton, Hazleton and Washington, according to the retailer.
The measure is expected to save the retailer approximately $65 million beginning this year, according to the company.
“While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position J.C. Penney for future success,” CEO Myron E. Ullman said in the statement.