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Sears is closing 103 stores

By Minjun Park
1 min read
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Struggling US department store chain Sears will close another 103 stores, as the retailer looks to “right size” the business.

Part of its strategic assessment of productivity throughout its store portfolio, Sears said 64 Kmart stores and 39 Sears stores will close between early March and early April 2018.

“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,” the company said in a statement.

The announcement comes after the department store chain’s last financial results, where it posted another loss, although narrower, for the quarter, making it the seventh straight year posting declines.

The parent company of Sears and Kmart has not reported a profit since 2010, although it has been pushing to return to profitability by closing its stores.

On its seventh straight money-losing year, Sears posted a net loss of $558 million, or $5.19 a share, during the fiscal third quarter, compared with a loss of $748 million, or $6.99, during the same period last year. The department store chain’s total same-store sales tumbled 15.3 per cent during the latest period.

Questions & Answers

Q.

How many Kmart stores are being closed?

A.

Sears plans to close 64 Kmart stores. These closures are part of a strategic assessment to adjust the business's physical footprint and digital capabilities to member needs.

Q.

When are the store closures expected to happen?

A.

The closures of the 103 stores are scheduled to occur between early March and early April 2018. This action aims to transform the business model.

Q.

What were Sears' financial results for the last quarter?

A.

Sears posted a net loss of $558 million, or $5.19 a share, in the fiscal third quarter. This loss was narrower than the $748 million reported in the same period last year.

Q.

How long has the parent company of Sears and Kmart been unprofitable?

A.

The parent company has not reported a profit since 2010, marking its seventh consecutive year of losses. They have been trying to return to profitability by closing stores.

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