At Home Group moves in just as JC Penney moves out

New York

WHEN JC Penney Co announced this month that it would shut 40 US stores, At Home Group Inc saw an opening.

Executives at the retail chain - which sells home decor in warehouses and other large spaces - checked the list of targeted stores and called JC Penney within a few hours to express interest in buying some of them. It helps that At Home had already researched JC Penney's more than 1,000 US locations ahead of time, just as a shopper would gear up for a big sale.

"When they make that announcement, we already know the ones we want," At Home CEO Lee Bird said in an interview. "That's our Black Friday."

In this era of shuttered storefronts and sluggish mall traffic, a handful of companies like At Home are taking advantage of the upheaval. As department stores and big-box chains increasingly focus on smaller stores, At Home is doing the opposite. Its 125,000 square foot locations aim to wow customers…