The Hemorrhaging Continues: Big Store Chain Announces Massive Downsizing

consumer
June 07, 2017Jun 07, 2017

In the era of big store closings, Sears Holdings Corp. announced Wednesday that they will be closing 66 Sears and Kmart stores across the country beginning this summer, according to the Los Angeles Times

In California alone four stores are scheduled to shut down – one location in Chico, and Kmart locations in Blythe, Sacramento and Manteca. Of the 66 stores total, 17 are Sears while 49 are Kmart, spread throughout the nation.

The purpose of the closings, according to an unnamed source intimate with the situation, is part of the “operational restructuring efforts” meant to make the company more profitable. The first closing will commence in July, followed by the remaining closings scheduled in September.

The records show that Sears has been on dicey ground for some time, although Chief Financial Officer Jason Hollar has dismissed claims that the company was struggling, stating that Sears was still “a viable business that can meet its financial and other obligations for the foreseeable future,” according to the LA Times.

One thousand Sears stores have since closed in recent years, followed by the $900 million sale of its Craftsman tools brand to Stanley Black & Decker in January. The sale boosted the store to profit-status for the quarter, but has posted a $2.2-billion loss for the fiscal year – twice the amount from a year ago.

Sears isn’t alone. Other traditional retails have been forced to jettison waste in an era where consumers are increasingly turning their eyes toward online retailers, such as Amazon. A report from Credit Suisse last week made the prediction that in the next five years, between 20% and 25% of the nation’s shopping malls will close their doors.

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