Embattled US department store retailer Sears Holdings is to shutter an additional 39 Sears and 64 Kmart stores as part of its efforts to return to profitability.
In an announcement made to Sears workers last week, the company said the unprofitable stores in question will close between early March and early April. It added liquidation sales are due to begin as early as this week, on 12 January.
“Sears Holdings continues its strategic assessment of the productivity of our Kmart and Sears store base and will continue to right size our store footprint in number and size,” the retailer said in a statement. “In the process, as previously announced we will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members.”
Sears added eligible associates impacted by the closures will receive severance and will have the opportunity to apply for open positions at area Kmart or Sears stores.
The closures announced on Thursday (4 January) are in addition to the 63 stores Sears has already said it will shut later this month.
Sears to shutter another 63 stores
Sears has been thrown a number of lifelines in recent months, including a US$100m cash injection by Sears Holdings owner and CEO Edward Lampert in the lead-up to the key holiday shopping season, and a deal to extend the maturity of its existing term loan. And in December an investor in the company urged it to consider its options – including going private – amid 24 straight quarters of sales declines.
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