Big changes continue at the Auburn Mall.
The J.C. Penney at the Auburn location is scheduled to close in June, along with 138 other stores nationwide. In Alabama, locations in Bessemer, Gadsden and Jasper will also be closing their doors.
The chain announced on February 24 that they will be closing stores in an effort to increase profitability, as well as compete with online sales. The total closures will represent approximately between 4 and 13 percent of the company’s current store portfolio and will save approximately $200 million in annual costs, according to a statement released by the company.
“In 2016, we achieved our $1 billion EBITDA target and delivered a net profit for the first time since 2010; however, we believe we must take aggressive action to better align our retail operations for sustainable growth,” said Marvin R. Ellison, chairman and chief executive officer of J.C. Penney.
Though J.C. Penney is closing, traffic through the Auburn Mall is not expected to change much because of the March 23 opening of a Stein Mart, which occupies approximately 32,000 square feet of the mall.
The city council approved the project in July of 2015, which outlined 55,000 square feet of commercial space that would be used for new stores and restaurants.
The Hull Property Group, owners of the Auburn Mall, as well as 29 other malls in the eastern United States, is in charge of this revitalization project.
John Mulherin, vice president of governmental affairs for Hull Property Group, refers to Stein Mart as the “fourth anchor,” and said the addition of the new store allows the property group to further on their redevelopment efforts.
“There are only a limited number of large format retailers that can fill an anchor space,” said Jim Hull, managing principal of Hull Property Group. “One approach will be reconfiguring the [J.C. Penney’s] existing space to accommodate several smaller shops, and potentially demolishing a portion of the existing facility with an eye toward redevelopment. This affords an opportunity to enhance the overall Auburn Mall in a way that will benefit both the property and the community.”
Next to the new Stein Mart, there is also an open 20,795 square feet of space. Coles Hull Doyle, the property group’s Marketing Director, has announced that they are currently marketing the sites, and they will make announcements as leases are signed.
The group remains optimistic about the changes, though.
“The Auburn community leadership has led an effort to revitalize the entire retail corridor, and because of their investments and ongoing work to promote this area, we are confident the Auburn Mall has a bright future ahead," Hull said.
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