Over the last several months, many popular retailers have made announcements regarding store closures. With the ever-increasing popularity of online shopping due to lower prices and higher convenience, the success of brick and mortar stores has continued to decline.
Now, one of the original chains who began closing their doors to their store has added dozens of more store closures to their list. Sears, who also owns Kmart, will be shutting down at least 72 more stores “in the near future.”
According to CNN, the announcement is expected to be officially made on Thursday afternoon. The officials at Sears had identified at least 100 more stores between Sears and Kmart that are not producing any profit, and at least 72 of those will be chosen for closure.
With the addition of these 72 stores shutting down, the total closures increases to 3,500 U.S. stores since the two companies merged in 2005. 400 of those closures took place in the last 12 months alone. At this point, there are only 894 stores left.
The announcement about the additional closures comes after a rapid decrease in sales in the last quarter. The three-month revenue period ended on May 5, and Sears said that there was a decrease of 31%. CNN did note that some of that decline was due to other stores closing, though the sales among still-open stores fell at least 12% as well.
Due to that decrease in sales over the last three months, Sears Holdings lost $424 million. Since 2010, which was the company’s last profitable year, they have lost over $11.2 billion.
At this point, the company is attempting to find innovative ways to increase their profits, though none of their efforts have been panning out. With 3,500 stores already closed, the future is not looking too bright for the company unless there is a major makeover of strategy moving forward.
What do you think about this? Do you ever shop there? Let us know your thoughts. In other recent news, a musician just fell to his death off of an escalator after "clowning around." Please keep his family in your prayers.