STAYING OPEN — The J.C. Penney store at the Fort Steuben Mall was not on the list of 138 stores slated for closing this spring. -- Dave Gossett

STEUBENVILLE –The J.C. Penney Co. will close 138 stores nationwide and one supply chain facility in Florida. But the store at the Fort Steuben Mall was not on the list for closures, sparking positive comments from local community leaders.

“I am very happy and excited because I was shopping at Penney’s Thursday night for linens for our bed and breakfast. I was wondering, where I would find the quality of linens I found at Penney’s if the store closed,” said Jefferson County Chamber of Commerce Executive Director Tricia Maple-Damewood Friday afternoon.

“It is interesting we aren’t closing here and nothing is closing in the Pittsburgh area, so maybe our area has the right demographics for retail business. I also think the closing of Sears last year and Macy’s this year has left Penneys with a corner on the market at the Fort Steuben Mall,” continued Maple-Damewood.

“The chamber board of directors and chamber members have been brainstorming for the past six months and decided to take on a bigger role. But for me the bigger issue is still local shoppers not going to local stores. I really hope the people who are concerned about our stores closing will rethink their shopping practices and support the local stores,” stated Maple-Damewood.

Her thoughts were echoed by Franciscan University of Steubenville economics professor Joe Zoric who said J.C. Penney should have an advantage because they have a monopoly as a middle-price department store in the area.

“They are taking away their one competitor in terms of quality in Macy’s,” he said. “Now, Penneys has a bigger share of the market.”

Zoric said remaining in the Steubenville market should serve Penneys well. He noted the aging population doesn’t always like to drive out of the area to shop.

“I would expect to see them expand their offerings a bit to cover some of the gap that Macy’s has left. Losing Macy’s cuts down on traffic, but for reasonably priced items, Penneys is a good place,” he said.

The J.C. Penney press release issued Friday said 5,000 positions nationwide will be impacted by the store closures, most of which will occur in June. Most affected stores will begin the liquidation process on April 17.

City Manager Jim Mavromatis said he is glad the Steubenville store was not on the list.

“There really aren’t a lot of clothing stores so this is great news, not only for the store employees but also for our local economy,” said Mavromatis.

Steubenville Mayor Domenick Mucci said the news “was very encouraging.”

“This may be the step we have been hoping to see that will reflect in our local business community getting stronger. The city will continue working with the Jefferson County Port Authority and the new management team at the Fort Steuben Mall to attract new businesses to the community and the mall,” said Mucci.

The mall was purchased for $10,333,333.34 at a foreclosure sale in U.S. District Court in Columbus in February by U.S. Bank. The bank served as a trustee for the lenders who held the mortgage note.

The Jefferson County auditor’s office reported the mall has a valuation of $39 million, generating $730,000 in property taxes a year.

Mucci said he has been told the bank trustee management group will seek more tenants to fill the empty stores in the mall.

“They will analyze the mall and its needs and are committed to keeping the mall open. But part of the solution will be for local residents to shop local. We need to think about the local stores before we go elsewhere to shop for items that are available in Steubenville,” Mucci said.

The mall has faced financial strains in recent months with Sears, an original mall tenant, closing its store last June.

The Macy’s Corp. announced in January 68 stores, including the Macy’s store at the Fort Steuben Mall, will close in the next few weeks.

(Gossett can be contacted at dgossett@heraldstaronline.com. Giannamore can be contacted at pgiannamore@heraldstaronline.com.)