J.C. Penney to shutter 39 stores, lay off up to 2,250

Despite a better-than-expected holiday shopping season, it wasn't enough to keep J.C. Penney JCP from shuttering 39 underperforming stores and laying off 2,250 workers.

Penney said the mall-based stores in 19 states will close by early April. Word of the store closures - which represent about 4% of the middle-market chain's stores - came days after Penney said holiday sales rose 3.7%.

"We continually evaluate our store portfolio to determine whether there's a need to close or relocate underperforming stores,'' said company media relations manager Sarah Holland. "Reviews such as these are essential in meeting our long-term goals for future company growth. While it's never an easy decision to close stores, especially due to the impact on our valued associates and customers, we feel this is a necessary business decision."

Penney shares closed up 0.8% to $7.95 Thursday after jumping 20% Wednesday on its holiday sales report.

With a glut of retail outlets, on-line sales rising and consumer tastes changing, many big chains are curtailing operations. Sears, Staples, Macy's and Coach announced store closures in 2014. But Penney is the biggest retailer to announce post-holiday store closures so far this year. Wednesday, struggling teen-centric retailer Wet Seal said 338 stores - two thirds of its total - would close and 3,700 employees let go in an effort to avoid bankruptcy.

Consumer psychologist Kit Yarrow, author of Decoding the New Consumer Mind, says, "Retail is in a massive transformation period. Consumers have lost their enthusiasm for trolling through massive stores hunting for a bargain. They can do that online.

"The only big department stores that will remain relevant to consumers are those that are incorporate tricks and treats into the shopping mix — like product offerings you can't find online, special demonstration or sampling, cushy or fun relaxation areas."

She says J.C. Penney "is bloated with deteriorating real estate at a time when people want smaller, easier to navigate, technology-enhanced shopping experiences.

"Poor Penney. I bet I'm not the only Boomer that really, really wants to shop there for the sake of their heritage, but can't," Yarrow says.

Contributing: Nanci Hellmich

Penney stores facing closure:

Georgia

Dalton: Walnut Square Mall
Duluth: Gwinnett Place Mall
Lagrange: Lagrange Mall

Iowa

Mason City: Southbridge Mall
West Burlington: Westland Mall
Waterloo: Crossroads Shopping Center

Illinois

DeKalb: Northland Plaza
Quincy: Quincy Mall

Indiana

Michigan City: Marquette Mall

Massachusetts

Hanover: Hanover Mall
Taunton: Silver City Galleria

Michigan

Adrian: Adrian South Mall

North Carolina

Asheboro: Randolph Mall
Elizabeth City: Southgate Mall
Statesville: Signal Hill Mall
Wilson: Parkwood Mall

New Jersey

Vineland: Cumberland Mall

New York

Kingston: Hudson Valley Mall

Ohio

Columbus: Eastland Mall
Greenville: North Towne Plaza
Springfield: Upper Valley Mall

Oregon

North Bend: Pony Village Mall

Pennsylvania

Chambersburg: Chambersburg Mall
Hummels Wharf: Susquehanna Valley Mall
Media: Granite Run Mall
State College: Nittany Mall
York: York Galleria

Rhode Island

Providence: Providence Place Mall

South Carolina

Aiken: Aiken Mall
Murrells Inlet: Inlet Square Mall

South Dakota

Aberdeen: Lakewood Mall

Texas

Brenham: Market Square Mall

Virginia

Manassas: Manassas Mall
Williamsburg: The Marquis

Vermont

Rutland: Diamond Run Mall
St.Albans: St.Albans Shopping Center

Wisconsin

Oshkosh: Aviation Plaza
Racine: Regency Mall

Shawano, Shawano Plaza