Tag: shopping centers

Long Island firm expanding EV charging with five new sites | Long Island Business News
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THE BLUEPRINT:

Five new fast EV charging stations planned across Long Island and Queens

Locations include Elmont, Levittown, Commack, Glen Oaks and Whitestone

Stations feature eight dual-port Kempower chargers with NACS/CCS1 connectors

Feil Organization properties host chargers as a new amenity for shoppers
Northport-based Get Charged Fast EV Charging and Kempower are expanding power access for electric vehicles with five new vehicle charging stations.

Three of the EV fast-charging stations will be soon available at shopping centers in Elmont, Levittown and Commack. The companies just launched their first fast-charging station at the Glen Oaks Shopping Center in Queens and will soon open another in Whitestone.

The new stations, each with eight dual-port Kempower Satellite chargers with NACS/CCS1 connectors, are coming soon to the Home Depot Shopping Center at 1760 Hempstead Turnpike in Elmont; the Commack Shopping Center at 50 Veterans Memorial Highway in Commack; and the Nassau Mall shopping center at 3601 Hempstead Turnpike in Levittown. All of the properties are owned by the Feil Organization.

The dual-port Kempower Satellite EV chargers are coming to more Long Island shopping centers. / Courtesy of Get Charged Fast EV Charging

The fast-charging stations feature free Wi-Fi, a few payment options, and don’t require new apps or memberships to access, according to a company statement. Get Charged rates start at $0.42 per kilowatt-hour, and ride share drivers, the high-volume, frequent flyers of EV charging, get juiced at a discounted rate.

“Get Charged is committed to providing fast, safe, and dependable charging infrastructure,” said Marc Horowitz, Get Charged Fast EV Charging co-managing partner. “Kempower is the ideal partner for supplying innovative, world-class charging hardware to meet the fast-charging needs of the region and the industry.”

At each location, Get Charged Fast leases eight existing parking spots and an additional 400 square feet to house its chargers and associated equipment. Besides the rent, the property owners also get a small percentage of the charging revenue, and the EV chargers allow retail landlords to provide an additional amenity to their shoppers.

“Over the last five or six years, I’ve been approached many times by lots of different EV chargers, and we just kind of felt that the industry had matured enough at this point where we could make an intelligent decision for the benefit of the customers of our shopping centers, providing an amenity that wouldn’t necessarily be obsolete in a few years,” said Randall Briskin, vice president of retail leasing for Feil Organization. “And so we finally elected to take most of our shopping centers and allocate a few parking spaces for these EV chargers.”

Horowitz said his firm is actively seeking other malls and shopping centers as prospective charging station sites on Long Island.

“We offer the amenity to our landlords at zero cost to them and help them to draw in new shoppers, supporting the flow of traffic to their tenant businesses,” Horowitz told LIBN. “We take responsibility for everything needed, including design and engineering, construction, permitting and insuring, working with PSEG, maintenance, ownership and operation of the entire site. We install our own independent electric meter and use only top-of-the-line U.S. manufactured DC fast chargers.”

While the lack of EV chargers has exacerbated “range anxiety,” a top concern for people considering purchasing electric vehicles, the number of charging stations has steadily increased. Nassau and Suffolk counties currently have 1,561 EV charging ports: 579 DCFC ports and 982 Level 2 ports, an overall increase of more than 500 ports from 2024. Those stations serve an ever-increasing number of vehicles, as there are now 87,304 EVs registered on Long Island, according to Drive Electric Long Island.

“Drive Electric Long Island is very happy to hear of the expanding charging infrastructure on Long Island that will help support and complement charging on corridors here on Long Island,” Ronald Gulmi, chair of Drive Electric Long Island’s EV Infrastructure & Fleet Committee, told LIBN. “The new charging stations will complement charging done at workplaces, multi-unit dwellings and residences, helping to expand the range of electric vehicle travel.”

Based in Finland, Kempower has its U.S. headquarters in Durham, N.C. Listed on the Nasdaq Helsinki Stock Exchange, the company manufactures modular and scalable EV charging systems that are now in 66 countries.

“Globally, EV drivers increasingly prefer charging spots with access to a variety of services like the Get Charged retail-centered charging hubs,” Kempower North America President Monil Malhotra said in the statement. “We’re pleased to work with Get Charged to provide accessible and convenient solutions for EV drivers across New York.”
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David Winzelberg

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January 16, 2026
Why These Small Businesses Are Moving Into Malls

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For decades, small company owners hoping to move their business or expand it to a mall were confounded by a lack of available space, or prohibitively high rents for empty storefronts. Now, as the number of big box and restaurant chains pulling out of those locations increases, the entrepreneurs that want to set up shop in shopping centers once reserved for giants like JCPenny, Macy’s, and Starbucks are finding mall vacancies in many parts of the U.S. — and at times paying lower per-foot rents than those corporate giants.

The list of large companies that have gone bankrupt or closed numerous stores in 2025 has been long, and includes craft chain Joann, Party City, Kohl’s, Big Lots, Claire’s, Dick’s Sporting Goods, and many more. While not all the big retailers and food businesses shuttering outlets have been based exclusively in malls, many maintain sizable footprints in U.S. shopping centers — including Starbucks, which last week announced hundreds of location closures. The subsequent slump in occupancy rates at many malls is now allows many smaller businesses to set up shop in them for the first time.

A recent study by commercial real estate company Cushman & Wakefield estimated the national vacancy rate in malls at 5.8 percent in the second quarter of 2025. While that may not sound high, it represented a 20 basis point increase over Q1, and a 50 point hike since the same period in 2024. That evolution is now leading many owners or managers of underoccupied shopping centers to rethink their earlier aversion to renting to smaller businesses, whose lower cash reserves often prevent them from taking on assured, long-term leases.

Instead, according to a recent report by CNBC, entrepreneurs are not only finding vacant space in malls available to rent. But they’re often also negotiating considerable deals on rent rates, business set up assistance, continual occupancy services, and shorter lease durations from owners. Some shopping centers set aside space for smaller businesses on more flexible terms, in hopes of converting them to longer-term leases, according to ICSC, a trade association of shopping center owners. Not surprisingly, more entrepreneurs want o seize those opportunities to move into shopping centers.

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“That kind of access wasn’t on the table for startups and small businesses three years ago in most metro areas,” Teresha Aird, co-founder and chief marketing officer of the Offices.net real estate brokerage, told the business news channel. “Now it is, and they’re making the most of it to test physical presence without overextending capital… The result is a more flexible, opportunity-rich environment that can be a lifeline for entrepreneurs navigating tight margins and competitive markets.”

The new opportunities for smaller businesses to rent mall space aren’t evenly spread across the country. For example, experts note that availability of nearly any commercial space in the New York City area is so tight that even converted warehouses are tough to lease. But many major U.S. urban centers — especially in medium-sized city centers and inner-ring suburbs of larger cities where big retailers have shut stores — the chances for entrepreneurs to move in on malls are multiplying.

To be sure, some shopping center owners continue betting they have more to gain by waiting for big box, anchor tenant occupants. Rather than renting to entrepreneurs with smaller budget looking for shorter leases at lower costs, many mall managers hold out for so-called “credit tenants” with large enough reserves to sign 5- to 7-year contracts at full market rates.

But an increasing number of mall landlords are feeling enough pressure on their vacancy rates and revenue that they’re now looking to rent to small businesses — even some pop-up stores. Many are even adding sweeteners to bring entrepreneurs aboard.

“In West Des Moines, a family-owned restaurant recently assumed an old chain pizzeria location at a rent of almost 30 percent below the original asking rent,” local real estate broker Jacob Naig told CNBC — adding the owner helped finance the kitchen redesign. “Such a deal wouldn’t have been possible just five years ago.”

There also may be another factor at work in the small business migration to malls. According to a recent study by location intelligence and foot traffic data company Placer.ai, small and niche retail and food companies are helping transform the entire shopping mall experience.

That involves giving consumers used to swooping in for fast, targeted buying blasts reasons to stay longer. Former single-store visitors to malls may now also get medical or wellness treatment, go to the gym, see local service providers, take in a spa, and enjoy a fancier meal than typical food court businesses usually offer.

As part of that, entrepreneurs can take over prime locations that national chains gave up, and add local, quality goods, meals, and services that effectively rebrand some malls. At the same time, they benefit from the work of former corporate occupants, who previously researched and identified those spaces as good for business.

“These spaces already had a site selection review, foot traffic, and locals are used to seeing activity in the space,” said entrepreneur Andy LaPointe, the owner of Michigan gourmet food company Traverse Bay Farms, who told CNBC he now operates locations in two strip malls. “But the magic happens when a small business brings, not a cookie-cutter replacement, but something unique, a place to linger and a sense of belonging… So when a national chain leaves a space, it isn’t just a gap, it’s a canvas for a small, local business to create something lasting.”

And that, after all, is what small businesses do best.

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Bruce Crumley

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October 1, 2025
Waterbury Commons Taken Off Market Just Year After Listing

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Will they or won’t they?

Less than one year after listing Brass Mill Commons in Waterbury for $30 million, the owner last week pulled it from the market, CT Insider reported.

The decision to pull the listing came after Kohan Retail Investment Group purchased the Commons and the adjacent Brass Mill Center mall from Brookfield Properties for $45 million — $26 million for the Commons and $19 million for the mall — in the spring 2022.

Kohan specializes in purchasing distressed malls and turning them around by populating them with bungee jumping machines, among other things.

The 200,000-square-foot Commons, which sits on just over 19 acres, counts Barnes & Noble, TJ Maxx, Dick’s Sporting Goods, Buffalo Wild Wings and Michaels as its tenants.

Forged Real Estate had the listing for the Commons, which is the more successful of the two properties, then-Waterbury Mayor Neil M. O’Leary told the Republican-American nearly two years ago.

O’Leary didn’t mince words concerning the mall’s difficulties over the past decade.

“The Brass Mill Commons is a thriving center and has done remarkably well,” O’Leary said. “That mall has struggled for years. Urban malls like it have struggled for many, many years, even before online shopping. The Commons, successful. Across the street, not so successful. … The Brass Mill mall is suffering from what most malls are suffering from, not only in Connecticut, but across America. People are shopping online. There are several different malls in Connecticut that have sold in recent years for dramatically less than what they were valued at because they are empty. Such is the case in this case.”

Kohan, which listed the Commons in late February 2023, has now hired Middlebury commercial real estate agent Brian Godin to oversee leasing at both Brass Mill Commons and the Brass Mill Center mall.

Both Brass Mill Commons and Brass Mill Center, opened in 1997, are located on Union Street and are easily accessible from Interstate 84. Brass Mill Center, one of Connecticut’s largest malls at 1.1 million square feet, features Burlington and JCPenney as anchors. However, the mall faced challenges with about three dozen vacant stores at the end of 2023, losing its Sears anchor store and a Regal Cinemas theater.

Recent developments include the opening of an Ashley Furniture outlet in the former Macy’s anchor store, owned by Connecticut businessman Sami Abunasra. The store occupies 30,000 square feet, with the remainder of the nearly 161,800 square-foot space being sought for other tenants by the Abunasra brothers.

— Ted Glanzer

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TRD Staff

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February 4, 2024
2 families lost multiple loved ones in the Texas outlet mall shooting | CNN

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CNN
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A family of four has become a family of one after a 6-year-old’s parents and brother were fatally shot by a gunman at a Texas outlet mall Saturday, a GoFundMe post by the family’s friends said.

The Houston office of the South Korean Consulate confirmed Monday that three Korean Americans – husband Cho Kyu Song, 37, and wife, Kang Shin Young, 35, as well as one of their children – were killed in the shooting, according to the Dallas Morning News. The child’s name and age were not given.

“Cindy, Kyu and three year old James were among those victims that tragically lost their lives and the family is in deep mourning,” a GoFundMe post read, written by friends of the family, referring to the family by their American names. “After being released from the ICU, their six year old son William is the only surviving member of this horrific event.”

Eight people were shot dead and at least seven others wounded before the gunman was killed by an Allen police officer who was already at the retail center on an unrelated call, police said.

It was one of more than 200 mass shootings in the US so far this year, according to the Gun Violence Archive, which like CNN defines a mass shooting as one in which four or more people are shot, not including the shooter. People going about their daily lives in schools, parks, grocery stores and medical buildings in communities big and small must now grapple with the trauma and grief that lingers when the shooting stops.

Here’s what we know so far about those killed in the Texas shooting:

The Cho family was at the mall for a day that should have been “filled with light, love and celebration,” but ended in tragedy, according to the GoFundMe campaign.

William, who just celebrated his birthday, lost his mother, father and younger brother in the shooting, according to the post.

Sisters Daniela and Sofia Mendoza were both elementary school students in the Wylie Independent School District, according to a letter sent to parents by the district.

Daniela was in fourth grade and her sister was in second grade, the letter said. Their mother, Ilda Mendoza, is in the hospital in critical condition.

“Words cannot express the sadness we feel as we grieve the loss of our students,” the letter reads. “Our thoughts and prayers are with the Mendoza family, the families of the victims, and all those affected by this senseless tragedy.”

Cox Elementary School Principal Krista Wilson described the sisters as “rays of sunshine” in the letter.

“Daniela and Sofia will not be forgotten,” the letter read. “Hug your kids, and tell them you love them.”

The school district says it is not announcing the news to the students and is leaving it up to parents to have that conversation with their children. Counseling services are being offered for students, staff and families, the letter said.

“Please hold the Mendoza family close to your heart. We know in times of tragedy, our community rallies around each other, and we will do all we can to support the family and friends of the precious students we lost.”

Christian LaCour was a well-liked security guard at the outlets.

“Christian was a sweet, caring young man who was loved greatly by our family,” his sister Brianna Smith told CNN.

The 20-year-old was “the kind of person who would just walk into the store and everyone in the room would light up because he was there,” said Max Weiss, a mall store employee.

“Every time he was in the store, it felt safer,” Weiss added. “He brought laughter and joy and always knew what to say.”

Aishwarya Thatikonda was killed while visiting the mall with a friend, CNN affiliate WFAA reported.

Thatikonda was a few days away from turning 28, Ashok Kolla, a spokesperson with the Telugu Association of North America (TANA) told CNN. The organization helps the Telugu community in the United States.

Family and friends described Thatikonda as a loving and hard-working person who was respected by co-workers, Kolla said.

Thatikonda worked as an engineer, a family representative told WFAA.

She moved to the United States about five years ago to pursue her master’s degree, Kolla said. She graduated with that degree from Eastern Michigan University in 2020.

“We were deeply saddened to learn this morning that an Eastern Michigan University graduate, Aishwarya Thatikonda, was among those killed in Saturday’s shooting at a mall outside of Dallas, Texas,” the university said in a statement. “Aishwarya graduated from Eastern in Dec. 2020 with a Master of Science in construction management.”

“As the nation has to once again grapple with a senseless act of gun violence, we share our condolences with Aishwarya’s family and friends,” the school added. “She will forever be remembered as a strong Eastern Michigan University Eagle.”

Thatikonda lived in McKinney, but her family is mourning her loss from their home in India.

The family plans to have her body sent to India, Kolla said.

CNN has reached out to the consulate general of India in Houston for more information.

In a statement released Monday, the Texas Department of Public Safety also identified 32-year-old Elio Cumana-Rivas as a victim in the massacre.

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May 8, 2023
One suspect believed to be dead in shooting at Texas mall, source says; police searching for possible second suspect | CNN

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CNN
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Authorities in a suburb of Dallas are responding to a shooting at an outlet mall, with ATF personnel on the scene at Allen Premium Outlets.

There is at least one confirmed shooter who is being reported as deceased on the ground, a law enforcement source told CNN.

There is a search for a possible second gunman, according to the source, based on descriptions from witnesses, although the involvement of a second shooter is not confirmed.

Police believe they have identified the vehicle of the deceased suspect, which is being examined by the bomb squad as a precaution, the source says.

The Dallas field office of the Bureau of Alcohol, Tobacco, Firearms and Explosives tweeted Saturday afternoon that personnel were responding to an active shooter incident at the mall.

Texas Gov. Greg Abbott called it an “unspeakable tragedy,” saying in a statement that “our hearts are with the people of Allen, Texas.”

Jaynal Pervez told CNN affiliate KTVT that he arrived at the mall after his daughter, who was inside, called to inform him about a shooting.

“We saw the police outside the door, and they told us we had to go, and that they are still looking for the person,” Pervez said. “There’s no more safe places. I don’t know what to do.”

Police in Allen asked residents to avoid the area.

Tony Wright, an Allen resident whose home backs up to the Allen Premium Outlets, said his family thought they heard construction before they realized it was gunshots.

Wright said he was driving away from his house at the time and didn’t hear the gunshots himself, but his family called him moments later, “freaking out,” and saying they heard gunfire.

Initially, however, it wasn’t clear.

“Everyone thought it was hammering,” he said of the noise of gunfire that sounded like construction.

But he said once they saw people fleeing the outlet mall, the family locked the doors and hunkered down.

This is a developing story and will be updated.

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May 6, 2023
3 people were wounded in a shooting at a Delaware mall, police say | CNN

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CNN
—

Three people were wounded in a “shooting incident” at a mall outside of Wilmington Saturday evening, according to Delaware State Police.

Multiple law enforcement agencies and other emergency responders are on the scene at Christiana Mall where an investigation is underway, New Castle County Coordinator of Emergency Management Dave Carpenter Jr. told CNN.

“There are currently no public safety concerns at Christiana Mall and the surrounding area. Please continue to avoid the area as DSP gathers more info,” the Delaware State Police tweeted.

Police didn’t provide details on the conditions of the victims, but said they have all been transported to an area hospital for medical treatment.

The Delaware Department of Transportation tweeted that all entrances to the mall are currently closed “due to police activity.”

Authorities set up a reunification site at the north entrance of the mall by the AT&T store, according to police.

No information was available on who opened fire or what led to the shooting.

This is a developing story and will be updated.

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April 8, 2023
1 dead, 3 injured in shooting at El Paso shopping mall | CNN

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CNN
—

Four people were shot Wednesday evening at the Cielo Vista Mall in El Paso, Texas, according to police. One person died, said Sgt. Robert Gomez.

“We have one person in custody. We do believe there could be one outstanding. That’s why the extensive search of the mall is being done right now,” Gomez said.

Police did not comment on a possible motive and did not provide details on the conditions of the three victims who were hospitalized.

“It was chaotic. People did flee. They were scared,” said Gomez.

Earlier, police asked people to avoid Cielo Vista Mall after getting reports that shots have been fired in the food court.

“Mall scene is still active please avoid the area. Multiple agencies responding to the area,” EPPD said in a tweet Wednesday afternoon.

The mall is adjacent to a Walmart where a mass shooting in 2019 killed 23 and left nearly two dozen more injured.

Robert Gonzalez was in the mall and told CNN he “saw people running to the exit.”

Videos taken by Gonzalez show several mall storefronts closed with their security gates down and police parked outside. He said he was able to make it safely to his car, where he was waiting to leave as he spoke with CNN.

Gonzalez recalled the 2019 mass shooting, saying today’s experience “just brought back bad memories.”

This is a developing story and will be updated.

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February 15, 2023
Juvenile warrant issued for 17-year-old charged with second-degree murder in Mall of America shooting | CNN

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CNN
—

Minnesota prosecutors have charged a 17-year-old with second-degree murder and second-degree assault in connection with a deadly shooting at the Mall of America.

This comes after Hennepin County Attorney’s Office filed charges against one adult and two juveniles.

The office charged the 17-year-old, identified by police as Lavon Semaj Longstreet, with “Murder-2nd Degree- With Intent – Not Premeditated (Aid/Abet) and Assault- 2nd Degree- Dangerous Weapon (Aid/Abet).”

A 19-year-old man, Johntae Raymon Hudson of Saint Paul, died in the shooting December 23, police say. One bystander was grazed by a bullet.

The mall, near Minneapolis, is the country’s largest shopping center.

Longstreet is not in custody and police say they do not know his whereabouts. A juvenile warrant has been issued for his arrest and anyone with information about his location is asked to contact the Bloomington Police Department.

Police said an altercation between about five to nine people occurred inside Nordstrom. Store surveillance video showed a male pulling out a gun and shooting the victim, Bloomington Police Chief Booker Hodges said.

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December 31, 2022
5 people arrested after a 19-year-old was fatally shot at the largest shopping center in the US | CNN

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CNN
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Five people were arrested Saturday in connection with the fatal shooting of a 19-year-old the previous night at Minnesota’s Mall of America, the largest shopping center in the US, police said.

The suspects – three 17-year-old males and two 18-year-old males – were arrested after police executed a search warrant on Saturday, Bloomington Police Chief Booker Hodges told reporters.

Investigators believe the shooter is one of the adults who was arrested, Hodges said. They’re trying to determine if another shooter was involved. The suspects were expected to be charged with second-degree murder, according to Hodges.

“We don’t know why this happened,” Hodges said. “And we don’t know the why, because people flat out are just not cooperating and people don’t want to talk.”

Hodges had earlier said officers heard gunshots on the first floor of Nordstrom just before 8 p.m. local time on Friday and found a man shot multiple times in the store. ,

On Saturday, Hodges said an officer working at the Watches of Switzerland store saw people come out of Nordstrom, ran into the store, and found the victim.

Lifesaving measures were performed on the victim but were unsuccessful. A bystander who was grazed by a bullet is expected to survive, Hodges said.

Minnesota Gov. Tim Walz said his office was working with local officials to provide support and resources, tweeting “the violence at MOA last night is absolutely unacceptable.”

The 30-year-old mall, about 10 miles south of downtown Minneapolis, is a popular tourist destination in the Midwest, with tens of millions of visitors each year. The giant shopping complex boasts more than 500 stores, more than 50 dining options, dozens of attractions and two hotels, according to its owners.

Friday’s shooting comes about five months after suspects fired gunshots into a crowded store at the mall. No injuries were reported in the August incident.

Hodges said the fatal shooting was the first firearms-related homicide at the mall. There was a domestic-related fatal stabbing at the mall in 1999, he said.

A preliminary investigation into Friday’s incident indicated there was an altercation between about five to nine people inside Nordstrom. Store surveillance video showed a male pulling out a gun and shooting the victim, Hodges said.

“We have an incident where if someone decides that they want to pull out a gun and shoot somebody with complete lack of disrespect for human life, I still don’t know what we can do to stop that,” Hodges said.

A motive for the shooting has not yet been determined.

Jovonta Patton, a Billboard gospel singer, was filming an Instagram reel at a Gucci location inside Nordstrom when gunshots went off in the background.

Patton quickly ran to the back room of the store to hide for about 15 minutes, where about six or seven others had also taken cover, he told CNN.

Several New York Giants players were also inside the mall at the time of the shooting, according to NFL Network insider Tom Pelissero.

The team was staying at a hotel nearby ahead of a game against the Minnesota Vikings in Minneapolis on Saturday. Giants spokesperson Pat Hanlon told The Associated Press on Friday the players who were at the mall during the shooting had made it back to the hotel, and everyone had been accounted for.

CNN has reached out to the New York Giants for comment.

Team announcer, Bob Papa, was also inside the mall during the incident.

“Scary here @mallofamerica,” he tweeted Friday. “Shooting in mall. On lockdown at #TwinCitiesGrill. Two gunmen at least one victim.” An hour later, Papa said, “Safely out of mall and back at hotel. Prayers to victim.”

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December 24, 2022
JCPenney was once a shopping giant. Can it make a comeback? | CNN Business

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New York
CNN Business
—

Marc Rosen didn’t flinch when he was offered the top job at JCPenney last year.

A stalwart of twentieth-century retail for middle-class Americans seeking affordable clothing and home furnishings, JCPenney has struggled for more than a decade and fell into bankruptcy shortly after the Covid-19 pandemic in 2020.

But Rosen, a retail veteran who previously worked at Walmart and Levi’s, said he “did not have any personal hesitancy at all” about trying to revitalize the 120-year-old brand and protect JCPenney from extinction like Barney’s, Lord & Taylor, Century 21 and other shuttered retailers.

“I believe in taking on large scale transformation,” Rosen, 54, told CNN Business in a video interview this month. “There was an opportunity to really take this brand and make it relevant again.”

Rosen is staking his turnaround plan on appealing to “America’s diverse working families.”

The typical customer at JCPenney has a median household income of between $50,000 to $75,000. Roughly 30% of the retailer’s customers are Black, Indigenous and people of color, according to the company, a larger share than many competitors

So JCPenney is chasing these shoppers with an overhauled beauty strategy after a long partnership with Sephora ended. It has remodeled stores and added new major brands and private-label clothing and home furnishings’ labels. The company has also improved its technology and online experience to draw more online sales. Just a quarter of JCPenney’s sales are online, trailing rivals.

Rosen said customers now are shopping at JCPenney more frequently, the first time that has happened for the brand in years, and it’s regaining market share in key departments such as home goods. (JCPenney does not break out sales publicly.)

But there are signs of pressure: visits to all JCPenney stores were down 29% as of October from the same time a year ago, according to data from Placer.ai. In October, traffic to JCPenney’s website increased only 1.26% from a year ago, according to data from SimilarWeb.

Now, a year into Rosen’s tenure, he faces his biggest test at JCPenney yet: the holiday shopping stretch. And it comes at an uncertain moment for the US economy and shoppers.

The company said it’s off to a strong start to the holiday season. But JCPenney’s main customers are feeling strained by the highest inflation in 40 years and they have shown signs of pulling back on discretionary goods— the bulk of what JCPenney sells.

Rosen also has to dig out from years of mismanagement and failed strategies at the company.

The company faces unrelenting pressure from much larger retailers such as Amazon

(AMZN), Walmart

(WMT) and Target

(TGT). TJX

(TJX), the owner of TJMaxx and Marshalls and other “off-price” retailers that have undercut the department stores’ model by selling designer brands at bargain prices.

“The future is going to be a challenging one because it’s difficult for department stores to navigate, even under the best circumstances,” said Erin Schmidt, a senior analyst at Coresight Research, a retail advisory and research firm. “The competition is really fierce.”

JCPenney started as the Golden Rule, a dry goods store, in Kemmerer, Wyoming, in 1902.

Its founder, James Cash Penney, quickly expanded the business and by 1917, there were 175 stores, later renamed JCPenney. By 1929, on the eve of the stock market crash and Great Depression, JCPenney had 1,000 stores.

Its stores were known for their low prices. Merchandise could be bought only with cash, not on credit.

JCPenney survived the Depression and by 1950, Fortune Magazine declared the company the “King of Soft Goods.” Penney himself became known as the “Man with a Thousand Partners.”

By the time he died in 1971, JCPenney had more than 1,600 stores, many in newly-built suburban malls, and was the fifth largest US retailer.

But the company’s mid-market appeal was tested by growing competition during the 1980s and 1990s. Discount stores including Walmart and Target spread, stealing away JCPenney’s budget-conscious customers.

The company was hit hard by the Great Recession in 2008. It lost shoppers to discount stores and struggled to bring them back as the economy began to rebound.

By the end of 2010, JCPenney’s sales had fallen 10% from their 2006 high of about $20 billion, and the company attracted the scrutiny of hedge fund manager Bill Ackman. Ackman bought up a chunk of Penney and installed Ron Johnson, Apple’s former head of stores, as CEO.

Without testing shoppers’ reactions first, JCPenney under Johnson changed its advertisements, its logo and its store designs.

The chain ditched top private-label brands with loyal followings and introduced new ones that had little relevance to its middle-income customers. And it ended coupons, a move that alienated loyal shoppers.

JCPenney’s sales plunged $4.3 billion in 2012, a 25% drop from the previous year. Johnson left in 2013, 17 months into the job.

The company cycled through several CEOs and strategies in the following years and brought back appliances for the first time in decades, a move that didn’t resonate with customers. The company was unprofitable every year beginning in 2011 and its sales fell each year starting in 2015.

In May of 2020, soon after the Covid-19 pandemic began and JCPenney was forced to close stores temporarily, the company filed for bankruptcy after 118 years in business.

At the time, JCPenney had more than 800 stores and 85,000 employees.

JCPenney has around 670 stores today and has little debt for the first time in years.

The company is owned by mall landlords Simon Property Group

(SPG) and Brookfield Asset Management

(BAM). The two firms rescued JCPenney out of bankruptcy for $1.75 billion in the fall of 2020. It was their interest to do so. JCPenney was a key tenant at hundreds of malls and a liquidation would have left vacancies in their shopping centers.

During the bankruptcy process, JCPenney restructured its debt and closed more than 200 stores.

Rosen said JCPenney now has the financial flexibility to invest in upgrading its technology, supply chain and revamping stores under under its new owners.

“That alignment with ownership is critical, especially as you’re going through a transformation that requires significant investment,” he said.

Instead of chasing new shoppers, as several of Rosen’s predecessors tried to do, he has built a strategy centered on convincing existing budget-focused customers to visit more frequently and buy a wider array of goods at JCPenney instead of other stores.

The company is attempting to highlight merchandise and services like hair salons and family portrait offerings that resonate with the its core working-class families. Teachers are the number one profession among its customers, so JCPenney has focused on ensuring stores have clothing they want to wear to work.

JCPenney’s 14-year partnership with Sephora ended in 2020 and it has started to replace many Sephora shops with new beauty departments. Roughly 20% of the products in new beauty areas come from a partnership with Thirteen Lune, an e-commerce company that features brands started by founders of color.

“Customers want to see brands that are brought to them by Brown and Black founders, and they want to see brands that look relevant to their skin types,” Rosen said.

Retail experts say that JCPenney is improving under Rosen and his strategy to target different customers than competitors is shrewd. Stores are better lit than they were before the bankruptcy and top vendors are selling merchandise to the company again.

“A lot of people in the industry wrote them off,” said David Katz, chief marketing officer at Randa Apparel & Accessories, which makes Levi’s, Dockers, Haggar and other brands. “Today, they are a good partner. We’re giving them a lot more financial credit than we used to. We are developing more products for them because we have confidence they’ll be able to sell it effectively.”

Still, JCPenney faces both short-term challenges and long-term questions about its survival.

Inflation is squeezing customers, particularly its middle-income shoppers. It’s not the only retailer facing that problem – Kohl’s said last week that its middle-income customers are buying fewer items when they shop and switching to private brands.

Rosen said that more JCPenney customers are buying the company’s lowest-priced products and switching to its cheaper private brands. The company plans to offer some products at 2019 prices during the holidays, including its St. John’s Bay cable sweater.

The bigger question remains whether there is a place for JCPenney in the changing era of retail and if it can draw younger customers.

Stiff competition has taken a toll on the entire department store landscape, including Kohl’s

(KSS), Nordstrom

(JWN) and Macy’s

(M).

JCPenney can’t solely rely on winning more business from existing shoppers with limited discretionary ability, said Schmidt from Coresight. The chain needs to attract new shoppers, too. But winning new customers has never been harder.

“They’re doing some really good things in terms of their positioning,” Schmidt said. “But the department store is a tough place to be. It will be a challenging road.”

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November 27, 2022

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