J.C. Penney: A case study in retail
J.C. Penney has been in our community for nearly 100 years, since it first opened in the 1930s in downtown Alpena.
For some in our community, they will remember walking into the two-story building on the corner of Second and Chisholm, shopping for a new back-to-school outfit or clothes for work. For some, like me, they will only remember shopping at its mall location after it moved in the early 1980s.
After nearly 100 years, the retailer that was once an anchor tenant for both the downtown and the mall is closing its doors.
James Cash Penney opened his first store in 1902 in Kemmerer, Wyoming. By 1928, only 26 years later, J.C. Penney had opened its 1,000th store in small and large towns across the country. J.C. Penney reached its peak number of stores in 1973, with 2,053 stores across the country, 300 of them offering a full line of not only clothing but appliances, sporting goods, salons, and auto parts.
Over the last 10 years, like many national chain retailers, J.C. Penney has dealt with plummeting stock prices, declining annual revenues, changes in leaderships, and nationwide closures of under-performing stores.
In May 2020, they became the fourth major national chain retailer to file for Chapter 11 Bankruptcy protection and announced the closure of many stores across the country, including our own.
The story of J.C. Penney — from a small-town retailer primarily based in downtowns to a national big-box giant to its current decline — is not unique.
Over the last year alone, a swath of stores have announced nationwide closings and/or filed for bankruptcy protections: J.Crew, Pier 1 Imports, Ann Taylor, Neiman Marcus, Brooks Brothers, Men’s Wearhouse, Sur La Table, Art Van. COVID-19 didn’t create the “retail apocalypse,” but it certainly accelerated trends that have resulted in the closure of these stores that have dominated the retail landscape.
With those closures, many have been left to ask: Where will I shop? Where will I get my clothes?
National and big-box retailers can bring opportunities and resources beyond what a small, locally based store ever could: robust e-commerce options, an incredible variety of products, and attractive low prices for the consumer. Many of those reasons are why businesses like J.C. Penney rose to national significance and found success even in small markets like Alpena. When those businesses are no longer economically feasible, what comes next? When those stores close their doors and leave a community, what do they leave in its wake?
When J.C. Penney opened in 1930, there were a total of six independent retailers and five department stores in downtown Alpena. By 1960, the number would grow to 19 men’s, women’s, and department stores in downtown alone. Each decade since then, the number of clothing shops downtown has dwindled. Gone are Tony and Norm’s, Masters, Martinson’s, Vaughn’s, Gately’s, stores with a tailor, measuring tape wrapped around his lapel, ready to greet you. With the closure of Country Cousins and Stephen’s Menswear over the last few years, only two clothing shops remain downtown: Myers Fashions Etc. for women, Emery Enterprises for men.
What is next for the future of retail in Alpena? Will we be forced to shop online or drive to larger areas? Can we ever return to the days where there was a locally owned clothing shop on each block?
We are at a pivotal point for the future of both small and large retail businesses. Changes in consumer habits, the meteoric rise of e-commerce, direct-to-consumer brands, and sell-everything behemoths like Amazon have not only accelerated the decline of those national retailers but have also challenged small, locally owned brick-and-mortar businesses.
Many of us dream, or perhaps reminisce, of a downtown filled with locally owned retailers where we can shop for our essential items: clothing, shoes, homewares, even groceries.
As these national retailers rose to their dominance, they shuttered many of those locally owned, smaller retailers in their wake, unable to compete. And now, as those large retailers close, where will we shop?
Can we rebuild those essential businesses, many of which we used to have, in a sustainable way? How can we ensure those types of stores can survive in today’s economic climate — and adapt to changing consumer habits?
Anne Gentry graduated from Brown University with a degree in comparative literature and has studied in Italy and South Australia. She is currently executive director of the Alpena Downtown Development Authority.



