Tags: sears | closing | stores | kmarts

Sears Closing 50 Stores – Mostly Kmarts – Even Sooner After Loss

Image: Sears Closing 50 Stores – Mostly Kmarts – Even Sooner After Loss
(REUTERS/Rick Wilking)

By    |   Wednesday, 10 Feb 2016 08:18 AM

Sears announced it was speeding up the closings of about 50 stores, primarily Kmart locations owned by the company, after reporting that its fourth-quarter revenue would be short of expectations.

Sears Holdings said the unprofitable stores have been targeted for "accelerated closures" in the coming months, reported CBS News.

"Liquidation sales are currently taking place," Howard Riefs, a Sears Holdings spokesman told CBS News. He declined to say specifically what stores will be affected.

"We don't disclose financials on a store-by-store basis. Moving forward, we will accelerate the closing of unprofitable stores."

The company said on Tuesday, according to the Chicago Tribune, that its fourth-quarter sales in stores open for at least one year tumbled 7.2 percent at Kmart locations and 6.9 percent at its Sears outlets.

Sears anticipates its total revenue to reach $7.3 billion in the fourth quarter, a drop from the $8.1 billion it made in its last fourth quarter, reported CNN Money. The company blamed a combination of factors, including warmer weather and increased competition, said CNN.

Shares for Sears Holding held at more than $15 Tuesday, a tumble from almost $45 per share just last May. Sears said it will move shore up apparel sales, which took a big hit over the holiday season.

"(Apparel sales have) a substantial impact on our overall profitability," Sears said. The company said it plans to respond by cutting prices and providing more variety, noted the cable network.

Sears Holding announced last month that it was closing 27 stores as "part of a series of actions we're taking to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model."

InvestorPlace.com reported then that the company's liquidations were scheduled to run from Jan. 24 through April. 

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Sears announced it was speeding up the closings of about 50 stores, primarily Kmart locations owned by the company, after reporting that its fourth-quarter revenue would be short of expectations.
sears, closing, stores, kmarts
294
2016-18-10
Wednesday, 10 Feb 2016 08:18 AM
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