Sears Closing Stores
December 27, 2011 by staff
Sears Closing Stores, Between 100 and 120 Sears and Kmart stores will be closed, the retailer said Tuesday, after terrible holiday sales during what is the most crucial time of the year for retailers.
Sears has yet to determine which stores will be closed, but there has been a clear shift in where the retailer will devote its resources.
The company is moving away from its practice of propping up “marginally performing” stores in hopes of improving their performance. Sears said it will now concentrate on cash-generating stores.
“Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model,” said CEO Louis D’Ambrosio. “These actions will better enable us to focus our investments on serving our customers.”
Sears (SHLD) would not discuss how many, if any, jobs would be cut.
Sears Holdings Corp., based in Hoffman Estates, Ill., said that the store closings will generate $140 to $170 million in cash from inventory sales. The retailer anticipates additional proceeds from the sale or sublease of real estate holdings.
The company, which operates Kmart stores, Sears, Roebuck and Co. and Land’s End, has seen rival department stores like Macy’s Inc. and discounters like Target Corp. steal customers away. But the economy is put a sustained financial squeeze on its most loyal customers, those in the middle-income bracket.
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