JCPenney Closes Another California Store—Local Jobs and Malls Hit Hard Again

Stoneridge Shopping Center’s JCPenney store in Pleasanton will close its doors for the final time on February 22, 2026, reducing the retailer’s Bay Area locations to just six from dozens at its peak. This shutdown underscores a broader retail contraction gripping the region and nation, as legacy department stores grapple with shifting consumer habits and unforgiving economics.

Lease Negotiations Collapse

JCPenney cited unsuccessful negotiations for acceptable lease terms with Stoneridge’s owners as the reason for the closure. The company could not secure continued occupancy or identify a viable alternative site in the local market. While expressing thanks to staff and shoppers, JCPenney offered no information on potential transfers for the affected Pleasanton employees. The store joins a string of closures amid mounting pressures on traditional retail operations.

Wave of Nationwide Shutdowns

This marks one of eight JCPenney store closures across the U.S. by mid-2025, including sites in Denver, Colorado; Pocatello, Idaho; Topeka, Kansas; Annapolis, Maryland; Asheville, North Carolina; Newington, New Hampshire; Charleston, West Virginia; and San Bruno, California. The retailer also shuttered its Alliance Supply Chain facility in Haslet, Texas, resulting in nearly 300 layoffs phased through November. These moves reflect accelerated downsizing for a chain once boasting over 1,900 U.S. stores; fewer than 650 now operate following about 200 closures since its 2020 Chapter 11 bankruptcy. Ownership shifted to Simon Property Group and Brookfield Asset Management post-restructuring, with a January 2025 merger forming Catalyst Brands alongside Aéropostale, Brooks Brothers, Lucky Brand, Nautica, and Eddie Bauer.

Financial Pressures Mount

JCPenney posted a $177 million net loss in fiscal 2024, reversing a $30 million profit from 2023, as net sales fell 8.6 percent to $6.3 billion. First-quarter 2025 brought a $64 million loss versus prior-year income of $19 million, with sales down over nine percent to $2.09 billion. The retail sector faced similar turmoil, with an estimated 15,000 store closures projected for 2025—more than double 2024’s 7,325. By mid-year, 6,000 had shuttered, a 65 percent rise from the prior period. Chains like Macy’s (66 stores), Walgreens (1,200 over three years), Party City (all 700), and Kohl’s (27) announced major pullbacks. Online sales climbed 8.3 percent, fueled by fast-fashion giants Shein and Temu, whose combined operations top $100 billion yearly. Inflation-sensitive shoppers seek superior experiences and prices that brick-and-mortar chains struggle to match.

Domino Effect on Malls and Communities

Anchor store exits like JCPenney’s trigger sharp drops in foot traffic, activating co-tenancy clauses that let tenants renegotiate or leave. This sparks cascading vacancies, endangering entire centers; 25 percent of U.S. malls risk losing anchors, with one in five potentially closing. Local governments suffer revenue shortfalls from diminished property taxes, straining funds for schools, safety, and infrastructure. In California, 173,022 job cuts occurred from January to November 2025—a 14 percent yearly increase—with tech leading at 75,262 losses tied to AI shifts and uncertainty. Nationwide, 178,500 jobs vanished from store closures, pushing total cuts to 1.17 million, the highest since 2020. Pleasanton, with the Tri-Valley’s top retail sales tax and a $186,000 mean household income, leans on hubs like Stoneridge—home to JCPenney and two Macy’s among 165 tenants—for economic stability, despite anchors like Workday and Oracle.

Adaptation and Outlook

Stoneridge’s owners, 300 Venture Group and Simon Property Group, report solid demand and near-finalization of a lease with a new tenant for the space. Simon is investing $400 million to $500 million in 2025 redevelopments, converting malls into mixed-use sites with housing, offices, healthcare, dining, and entertainment to diversify income beyond retail. JCPenney showed Q2 2025 improvement, with $110 million in profit, milder sales drops, rising traffic, and gains in beauty, jewelry, home goods, private labels like Xersion and Arizona, and partners such as Clarks and Skechers. Yet the core challenge persists: demonstrating unique value against e-commerce and discounters. As leases renew and preferences evolve, surviving locations must prove profitability, with broader implications for jobs, malls, and local budgets hanging in the balance.