16 Kmarts among 78 to close in September.
Ten more Sears and Kmart stores have been added to the growing list of locations slated for closure, a move that represents another step in the diminishment of what once were two of the nation’s most prominent shopping chains.
Sears Holdings, which owns both chains, said it informed employees Thursday that it would be shuttering nine Sears stores and one Kmart in late September. Liquidation is scheduled to begin as early as July 13, the company said in a statement.
With the additions, a total of 78 stores – 62 Sears and 16 Kmart locations – will close in September.
The addition of 10 wasn’t a total surprise. In announcing May 31 that it would close 63 stores, Sears Holdings said that it had identified a total of 100 underperforming stores – meaning they could be on the chopping block. Though it had planned to close more stores, it pulled back at the time.
But the change of heart didn’t last long. Five more Sears stores were added to the closure list on June 6.
Sears and Kmart just keep shrinking. Sears Holdings has closed more than 500 stores over 15 months through the end of its fiscal quarter on May 5. At the time, it had about 900 stores left, according to Susquehanna International Group retail stock analyst Bill Dreher.
The closures come as Sears Holdings piles up losses. For the first fiscal quarter, Sears reported a net loss of $424 million compared to net income of $245 million in the year-ago period when the company had a temporary gain from the sale of its Craftsman brand. The chains have had to deal with declining mall traffic and heightened online competition.
Sears said the closures were part of the company’s “ongoing efforts to streamline the company’s operations and focus on our best stores.”
Referring to the closure of a single store in Florida, it said “eligible associates impacted will receive severance and will have the opportunity to apply for open positions at area Kmart or Sears stores,” the statement said. Spokesman Larry Costello said that beyond the statement, Sears was “not commenting further.”