Tuesday, December 27, 2011

Sears to Close 100-120 Kmart & Sears Stores, Affecting Thousands of Retail Workers

Old logo of Sears
Image via Wikipedia
This morning Sears announced they will be closing 100 to 120 Kmart and Sears stores due to poor sales and lack of competition to rivals like Target & Walmart.  Earlier this year Sears announced they would close 10 stores.  Though all major media outlets continue to only focus on what this means for the stock and shareholders of Sears/Kmart, the closing of stores is expected to lay off or displace over 1,000 Sears/Kmart retail employees.  Our hearts and best wishes go out to those who will be affected by the store closings.

From The Associated Press:
Sears Holdings Corp. plans to close between 100 and 120 Sears and Kmart stores after poor sales during the holidays, the most crucial time of year for retailers.  
The store closings follow its announcement last quarter it would shutter 10 stores. Kmart and Sears have a combined 2,177 U.S. big box locations and another 500 in Canada.
A list of which stores closing will be available at www.searsmedia.com.
Wall Street analysts have long faulted Sears for not investing enough to make its stores appealing. Sears is "effectively asking customers to pay for a poorer shopping environment" than other chains, Credit Suisse analyst Gary Balter said in a note to clients.
Balter was also surprised that Sears would borrow money during the holidays, which are typically a peak cash flow period.

Sears blamed poor consumer electronics sales in a tough economic environment "especially for big-ticket items" for more than half of the decline in its namesake chain's domestic same-store sales.

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