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Sears plans to close 50 stores

RBR Staff Writer Published 11 February 2016

Sears Holding Corp is planning to close around 50 of its stores under cost-cutting measure as the company experienced declining profits during the holiday season last year.

sears

The retailer, which is operated by billionaire hedge-fund manager Edward Lampert, has been offloading assets to raise funds to offset operating losses and meet other obligations, reported The Wall Street Journal.

The department store chain experienced continuious slump in sales, which has led the retailer to close approximately 50 stores.

Over the last few years, several hundreds of stores have been closed.

The company also intends to raise cash by divesting assets such as its auto service business, reported Fortune.

During the holiday quarter, comparable sales at its units Kmart dropped 7.2% and 6.9% at Sears, which saw one of the worst sales performances among several big department stores such as J.C.Penney, Kohl's, Macy's, reported the publication.

In a press release, the company had stated: "The holiday selling season proved to be challenging, with historically warm weather and intense competition pressuring margins and driving comparable store sales declines, particularly in our apparel and related softlines businesses."

The company intends to accelerate the pace of store closures in the next few months.

In the last five years, Kmart's store count has come down to 950 from 1,309 while that of Sears has dipped to 708 from 868, reported Fortune.


Image: Sears undertakes store closures to cut costs. Photo: Courtesy of Caldorwards4/Wikipedia.