Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Commercial Real Estate

Sears and Kmart to close up to 120 locations

Kmart and Sears closing locations

Sears Holdings has reported a drop in holiday sales so severe that their only option is to close 100 to 120 Sears and Kmart stores whose locations have not yet been identified. Currently, Sears Holdings has over 4,000 stores in America. Sales slid 5.2 percent in the two months prior to Christmas Day in stores that had been open for at least a year in a climate where retail sales nationally were not dropping.

It has been predicted that most of the closings will be Kmart stores in the Northeast as Target and Wal-Mart continue to gain market share. Sears Holding CEO, Lou D’Ambrosio said in a statement, “In addition to the specific store closures listed above, we will carefully evaluate store performance going forward and act opportunistically to recognize value from poor performing stores as circumstances allow.”

D’Ambrosio added, “While our past practice has been to keep marginally performing stores open while we worked to improve their performance, we no longer believe that to be the appropriate action in this environment. We intend to accentuate our focus and resources to our better performing stores with the goal of converting their customer experience into a world-class integrated retail experience.”

Inventory to be slashed

As another cost-cutting measure, Sears Holdings notes that they will cut inventory in the remaining stores by $300 million. The company aims to cut $100 to $200 million in fixed costs. Due to the poor sales, the company reports expectations of taking a non-cash charge on certain deferred tax assets between $1.6 million to $1.8 million.

Advertisement. Scroll to continue reading.

To insure their long term survival, the company says the closings are their best option as they will generate between $140 million to $170 million in cash as the inventory of the closed stores is sold off and cash from the sale or sublease of the closed stores.

D’Ambrosio said, “These actions will better enable us to focus our investments on serving our customers and members through integrated retail at the store, online and in the home.”

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Commercial Real Estate

When considering whether you should lease your office space or buy, an industry expert outlines the questions you should ask yourself.

Business News

(FINANCE) An anti-trust lawsuit against major players in the residential real estate industry sheds light on misinformation and misunderstandings about commissions - when you're...

Social Media

(SOCIAL MEDIA) Facebook is updating its trends page as another step in its revamping process.

Business Marketing

(MARKETING) Opcity is the Austin startup making big changes to the ways that lead generation happens in real estate.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.