An­other 43 stores to be shut by Sears, Kmart

Apparel Online - - Retail Current -

Un­able to with­stand the strug­gling re­tail mar­ket and the emer­gence of on­line re­tail­ers like Ama­zon, Amer­i­can depart­ment store chain, Sears Hold­ings Cor­po­ra­tion, will shut 8 Sears and 35 Kmart un­prof­itable stores by early Oc­to­ber this year. The clo­sure of un­der-performing stores will al­low the re­tail­ers to fo­cus more on the bet­ter-performing stores as well as to re­turn on the path of prof­itabil­ity.

“This is part of a strat­egy both to ad­dress losses from un­prof­itable stores and to re­duce the square footage of other stores be­cause many of them are sim­ply too big for our cur­rent needs. We have made sig­nif­i­cant progress in our re­struc­tur­ing pro­gramme since the be­gin­ning of the year and are well on track to achieve our US $ 1.25 bil­lion an­nu­alised cost sav­ings tar­get,” said Ed­die Lam­pert, CEO, Sears Hold­ings.

Sears, which pre­vi­ously an­nounced to close 265 stores this fis­cal, has re­alised that fur­ther mea­sures need to be in­tro­duced in or­der to sur­vive in the chal­leng­ing re­tail en­vi­ron­ment. In the first quar­ter of the cur­rent fi­nan­cial year, Sears’ com­pa­ra­ble sales had plunged 12.4 per cent, while Kmart had re­ported an 11.3 per cent drop.

Ad­di­tion­ally, the ad­vent of e-re­tail­ers and con­tin­u­ous drop in store traf­fic have fur­ther pushed the com­pany to slash its busi­ness op­er­a­tions. This strate­gic move will bring down the to­tal num­ber of Sears stores to around 1,140 from 2,073 about five years back. How­ever, the changes made are ex­pected to build more con­fi­dence in the fu­ture of Sears Hold­ings among its ven­dors and put the com­pany on a more level play­ing field with its com­peti­tors in the re­tail space.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.