Dive Brief:

• J.C. Penney appears to be in the midst of a surprising turnaround after a couple of years of falling sales and increased customer disgruntlement. 

• Analysts say that the upcoming holiday season will likely require significant discounting to attract shoppers, which will present a challenge for the retailer.

• This discounting could presage store closings to bring the retailer’s number of stores to under 1,000, analysts say. The retailer hasn’t commented on that prediction.

Dive Insight:

E-commerce and consumer expectations for fulfillment perks like same-day delivery and in-store pickup could be pressure points for J.C. Penney, analysts say. That could lead the retailer to close more stores as leases come up for renewal. But analysts say that could save the company some $3 million per store without affecting sales much, and won’t likely be seen as a weakness.