Sears Holding Corp Shuttering Some Sears and Kmart Locations
Sears Holding Corp announced that it is shuttering a number of its stores across the U.S. as part of its annual review of the store network and its ongoing efforts by the retailer to lower its costs.
We are closing some Sears and Kmart locations in cities around the U.S., but it is a small percentage of the overall store count, said a spokesperson for the company without disclosing how many of the stores would actually be closed.
Sears Holdings is the parent company for the Sears department stores and Kmart discount chain. As of the November 1, it had 735 Sears and 952 Kmart stores.
The stores that the company is closing are mainly Kmart locations. Sears, a retailer that has been traditionally bricks and mortar locations has attempted to reduce the physical footprint it has as the demand for online shifts.
Rival chain Macy’s, which was hurt by lower demand for its winter apparel due to unseasonable warm weather, also announced just recently that it will shutter 36 stores.
Sears in December cites sluggish sales of apparel in reporting revenue at its stores open over a year falling 9.6% at Sears and by 7.5% at Kmart for its fiscal third quarter though the company’s loss was narrowed on cost cuts.
Sears is scheduled to report its results for its fiscal fourth quarter sometime in the latter part of February. Those results will include its crucial holiday shopping season at yearend, but no exact reporting date has been released by the company.
Sears and Kmart have struggled for a number of years trying to attract shoppers due to much more competition and the shifting of shoppers to move online in the comfort of their home as opposed to shopping in stores.
The company also used a REIT with its properties to ease its cash flow problems during the second half of 2015.
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