Sears Holdings to close 28 U.S. Kmart locations

Sears Holdings Corp. says it will close even more stores in the United States following declining sales and heightened competition in its fiscal second quarter.

The retailer has been trying to cut costs by closing stores, including 180 this year, and already had plans to cut another 150 stores. It now plans to shutter an additional 28 Kmart stores.

Illinois-based Sears Holdings reported that its second-quarter loss narrowed to $251 million, or $2.34 per share. Losses, adjusted for one-time gains and costs, came to $1.16 per share.

Revenue fell 23 per cent to $4.37 billion in the period. Sales at stores open at least a year, a key measure of a retailer’s health, dropped 11.5 per cent.

In March, Sears Holdings said there is “substantial doubt” it could continue as a viable concern, with intense pressure coming from companies like Wal-Mart, Target and Amazon. com. It has insisted that its actions to turn around its business should help reduce that risk.

Its Canadian affiliate, which has a common major shareholder, also said there was “significant doubt” about its ability to continue on June 13. Sears Canada then sought court protection from creditors on June 22. Sears Canada is in the process of closing 59 stores and cutting 2,900 jobs nationally while simultaneously looking for fresh investors and buyers for some or all of its business under supervision by the Ontario Superior Court.