When JCPenney items are returned, overproduced, or a store shuts its doors, that merchandise doesn’t always go straight back to the manufacturer or onto clearance racks. Instead, there’s a multi-step process that helps the company recover value—and gives bargain hunters opportunities to score big savings on JCPenney liquidation.
Contents
1. Customer Returns
Not every return goes back on the sales floor.
- Like-new condition: If an item is unopened or in pristine condition, it’s usually reshelved at the original store or another nearby location.
- Open box or slightly damaged: These may be marked down in-store or sent to a clearance center.
- Non-sellable items: Products that can’t be resold at retail prices may end up in liquidation channels.
2. Overstock Inventory
Like most major retailers, JCPenney orders seasonal and trend-based items in bulk. When sales don’t match forecasts, excess stock builds up. Overstock may be:
- Transferred to outlet or clearance centers.
- Discounted in major sales events.
- Sold in bulk to liquidation companies who resell to discount stores or online marketplaces.
3. Store Closing Inventory
When a JCPenney store shuts down, professional liquidators often step in. Firms like Gordon Brothers or Hilco oversee storewide sales—often starting at 20–30% off and increasing to 70–90% off as the final day approaches.
- Fixtures, shelving, and mannequins are also sold.
- All sales are typically final during closing events.
4. Where the Inventory Goes Afterward
Once store-closing sales wrap up, remaining merchandise is often:
- Sent to regional clearance centers.
- Auctioned in bulk to liquidation buyers.
- Distributed through discount retailers, outlet stores, and even online auction sites.
5. How Shoppers Can Take Advantage
If you want to score deals on JCPenney overstock or store-closing goods:
- Watch for announcements on JCPenney’s official site or in local news.
- Shop early for the best selection, but wait toward the end for the deepest discounts.
- Check liquidation resellers—many items end up at bargain outlets, discount department stores, or even thrift shops.
How To Tell What Are JCPenney Liquidation Items
Spotting JCPenney liquidation merchandise—especially when it’s mixed in with other brands at discount stores—comes down to knowing what to look for on the tags, labels, and packaging.
1. Check the Brand Name
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JCPenney Private Labels: Many liquidation items come from JCPenney’s own brands, which are sold exclusively in their stores. Common examples include:
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St. John’s Bay (casual wear, denim, outerwear)
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a.n.a (women’s contemporary fashion)
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Stafford (men’s dress shirts, suits, and ties)
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Arizona Jean Co. (youth and casual wear)
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Okie Dokie (children’s clothing)
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Home Expressions (bedding, towels, and home goods)
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Designer & Licensed Brands: JCPenney also carries national brands like Levi’s, Liz Claiborne, Puma, Adidas, and Champion. These may show up in liquidation sales if overstocked or returned.
2. Look for Price Tag Clues
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Original JCPenney tags often feature the store logo, department number, and a long SKU starting with “PP” or “RN93677” (the registered number assigned to JCPenney).
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Clearance or “Final Sale” stickers may be layered over original tags.
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Items from store-closing events may still have red or yellow percentage-off stickers from liquidation firms.
3. Packaging and Product Codes
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Bedding, cookware, and other hard goods may have packaging with JCPenney branding, even if the product is made by another manufacturer.
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UPC codes on liquidation items often match those from past JCPenney online listings (you can scan with a barcode app to confirm).
4. Condition Indicators
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Many liquidation items are new in package or with tags intact, but some may be “open box” or have minor defects, especially if they came from returns.
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If shopping in a mixed-brand liquidation warehouse, JCPenney goods are often grouped together on specific racks or pallets.
Where to Buy JCPenney Liquidation Items
After liquidation events, JCPenney products can often be found at:
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JCPenney Outlet Stores – Some regions still operate outlet or clearance centers.
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Discount Department Stores – Ross Dress for Less, Burlington, and similar retailers sometimes carry JCPenney overstock.
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Liquidation Warehouses – Many cities have wholesale liquidation outlets open to the public. Find a liquidation outlet near you.
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Online Liquidation Marketplaces – Websites like Liquidation.com, B-Stock, and Direct Liquidation often sell JCPenney merchandise in bulk lots.
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Thrift Stores & Charity Shops – Returned or overstock apparel sometimes ends up at Goodwill or Salvation Army stores.
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Local Auctions & Facebook Marketplace – Resellers frequently flip bulk-purchased liquidation items here.
List of JCPenney Liquidation Stores
Search for a liquidation store or bin store near you. Please note that these stores may also carry liquidation items from other retail sources such as Target salvage, Costco liquidation, Walmart salvage, &/or Amazon salvage. You can search by state, city, or name of the store. Click on the store name for a link to their website or Facebook page for hours and specials.
Bottom Line
JCPenney’s returned, overstock, and store-closing inventory goes through a strategic resale process that can lead to huge savings for smart shoppers, whether you visit a closing sale, a clearance center, or a local liquidation store.
Featured Image Source: Sequim Gazette — “JCPenney begins liquidation of store after 26 years in Sequim,” photo by Matthew Nash (Jan. 27, 2021).
