Sears To Close 3 Percent Of Its Stores
December 27, 2011 by UPI - United Press International, Inc.
HOFFMAN ESTATES, Ill., Dec. 27 (UPI) — Sears Holdings Corp. said Tuesday it would close up to 120 Kmart and Sears U.S. stores due to slow sales, especially in electronics and home appliances.
The company, which currently operates 4,000 stores, did not say which stores would close, but said a list would be published online at www.searsmedia.com “when a final determination is made.”
Sears said revenue at Kmart and Sears stores opened at least a year dropped 5.2 percent to date for the fourth quarter, compared to the same period a year earlier.
The figure could be interpreted as a nationwide bellwether for retail. However, several retail trade groups have said holiday sales were strong, but not sizzling this year.
Earnings for the fourth quarter are expected to drop more than 50 percent compared to the same period of 2010, when earnings reached $933 million.
“Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model,” said Chief Executive Officer Lou D’Ambrosio.
Sears said it plans an inventory reduction of $300 million “from the 2011 level of $10.2 billion at the end of the third quarter,” exclusive of the effect of store closings.