Sears to close 100 to 120 Kmart, Sears stores

[katnapped]

(AP)  NEW YORK â€" Between 100 and 120 Sears and Kmart stores are shutting down after terrible holiday sales during the most crucial time of the year for retailers.

Sears Holdings Corp., based in Hoffman Estates, Ill., said Tuesday that the store closings will generate $140 to $170 million in cash in inventory sales. The retailer anticipates additional proceeds from the sale or sublease of real estate holdings.

The retailer says that same-store revenue fell 5.2 percent to date for the quarter at both Sears and Kmart. Kmart's declining sales were blamed on diminished layaways and a drop in clothing and consumer electronics sales. Sears' cited lackluster consumer electronics and home appliance sales.

Sears has more than 4,000 stores in the U.S. and Canada.

[retailisking]

Well, it certainly could have been worse.  Remember the huge number of store closings while Kmart was struggling prior to and during its bankruptcy? Edit 4:52 zayre88 is absolutely right; this is but a harbinger of more store closings to come. One troubling sign is that Sears couldn't pay for holiday merchandise out of cash flow; they had to dip into their borrowing facility.  SHLD was down 27.2% today...

http://money.msn.com/top-stocks/post.aspx?post=928527db-24b8-400d-8021-26f5a32b828c

[Zayre88]

It could have been worse, but it will be worse sooner or later...

This company is just a mess.  They've been loosing market share for years, revenues are down, same-store-sates are down, profit is down, store count is down.

They don't have a clue on how to fix it.  Sears stores today look the same way they were 15 years ago.  Kmart stores look the same way they were 20 years ago.

The company wasted time and money in various concepts, brands, color schemes and they still have no clear focus, no strategy to revamp the stores and the shopping experience.

[Zayre88]

Sears stock took a 20% drop today on this news...

[Zayre88]

From Forbes:

“Sears is past the point of no return,” says Mark Cohen, a professor at Columbia Business School who is also a former chief executive and chairman of Sears Canada. “I don’t know if they will necessarily go out of business in 2012, but they are digging themselves into the ground.”

From USA Today:

Columbia Business School  professor Mark Cohen â€" who was CEO of Sears Canada until 2004 â€" is critical of company management, as well as the pricing strategy and merchandise selection. "There is no retail turnaround that is possible," he says.

Mark Cohen is former chief executive and chairman of Sears Canada and he used to be chairman and CEO of Bradlees.

[dmx10101]

Very sad, but unfortunately Lampert has run the companies into the ground ever since he bought them and took over.
Here's two good artclies about the closing blasting Lampert and his poor management-
Reuters- http://www.reuters.com/article/2011/12/27/us-sears-sales-idUSTRE7BQ0AV20111227
Bloomberg- http://news.businessweek.com/article.asp?documentKey=1377-aexln3YsM5yA-0S0L77N4D14A3BTJPL9RQBPSF9

And to just think 15 years ago Kmart and Sears were both going strong on their own, now together they are are disaster that is getting worse by the day.

[shore72]

I don't keep my ear that close to the ground, but I sure heard this coming. I have a hard time thinking of things they're doing right.

Yesterday we went shopping in a fast growing, upmarket town. We stopped at a brand new Kohls and then went next door to a well-kept JCPenney's. Across the street is a Target and a halfway-decent Peebles. Where is Sears in all this? They have a small dealer store selling major appliances and a small selection of tools, and no Kmart. I have nothing against the local owner, he does a good job, but the business model there just doesn't seem to work anymore. To me, Sears has messed up the most by putting its real assets (the brandnames, especially Craftsman/Diehard) in every Tom, Dick & Harry competitor in town. As for Kmart, from what I've seen they are only successful in locations where WalMart can't or won't go. I've seen some of their stores really thrive that way, but sitting around hoping the competition won't open up in the neighborhood just isn't much of a business plan.

[jason83080]

Agh, "Sears Appliance and Hardware." What a terrible idea. "Sears Hardware" used to be a great store when it was on its own. They took out the Garden Centers and added in appliances and in-store signage out of the '50s, and it's just a mess. I don't remember the last time I was in the local one, but I know that the other nearest one in Westlake, OH, is now an Aldi Food Market.

I'm still excited for the return of Kmart, if for no other reason than to give me somewhere else to shop nearby that ISN'T Walmart or Target.

[ynkeesfn82]

My vote is for the KMART in Waterbury, CT to close. What a dump.

[retailisking]

According to one published report no Kmart locations in the Northeast are closing
http://www.sunjournal.com/news/city/2011/12/28/local-sears-kmart-stores-escape-wave-closures/1133374

[Ameskid]

I remember when I joined back in 2006, people were saying "any day now".  They may not have been correct back then, but I truly believe that these are the last years.  A sad end, but also a valuable lesson.

[dmx10101]

Well a partial list has been revealed here- http://www.searsmedia.com/tools/122711_close.pdf

It's about half Sears, half Kmarts. Anyone's local store closing? One of mine is.

[retailisking]

The Nashua and Keene NH Sears Essentials stores got whacked.  Nashua has a traditional Sears store in the Pheasant Lane Mall, while the Keene area will have to make do with Hometown stores in Rindge or Claremont or schlep over to the full-line stores in Nashua or Leominster, MA. No Kmart in Keene, either, though there's a Kmart in Claremont.  I would have thought Keene was a robust enough market to support a full-line Sears or a Kmart, but apparently not.

[Zayre88]

The Nashua and Keene NH Sears Essentials stores got whacked.  Nashua has a traditional Sears store in the Pheasant Lane Mall, while the Keene area will have to make do with Hometown stores in Rindge or Claremont to schlep over to the full-line stores in Nashua or Leominster, MA. No Kmart in Keene, either, though there's a Kmart in Claremont.  I would have thought Keene was a robust enough market to support a full-line Sears or Kmart, but apparently not.

So in NH, Kmart stores that became Essentials failed...  Only 6 regular Kmart left.

[retailisking]

I think most observers would agree that the Sears Essentials format has been a failure; they shuttered the Essentials in Derry, NH last year and the space became a huge Market Basket. Here's local coverage of the Keene and Nashua closures:

http://www.sentinelsource.com/news/local/sears-to-close/article_3aec0589-e099-5eca-9988-561848164968.html

http://www.nashuatelegraph.com/news/944871-196/sears-downsizing-swallows-up-amherst-street-store.html

I imagine the Keene closing creates a vacancy for a Hometown store to open.

From the "What Was Eddie Lampert Thinking" department, an excellent Wall Street Journal (by way of The Australian) article touches on Lampert's earlier experience at AutoZone which might have encouraged him to use the same strategy at Sears:

http://www.theaustralian.com.au/business/wall-street-journal/nothing-to-fear-but-sears-itself/story-fnay3x58-1226231790203

[Zayre88]

I like one comment about the Nashua store "I love K-Mart in Hooksett. Sears Essentials were K-Marts with Sears prices."

To me Sears Essentials was a failure from the start, not good enough to be a full-line Sears, not good enough to be a Kmart.  Some appliances, some tools, some groceries... a very large convenience store with big-ticket items at high prices all presented in a Sears way in the shell of a former Kmart.

[ynkeesfn82]

Here's a list of 80 closings. Still can't believe why KMART Waterbury, CT isn't closing.

http://searsholdings.com/about/122711_close.pdf

[XDeSuEhTX]

This is terrible news, I really don't want to witness the demise of this company. I enjoy both my local Kmart and Sears stores, and I've been quite loyal to Kmart over the past few years. They've done a lot to try and improve my local store recently but it really hasn't swayed the local opinion much. Walmart remains ridiculously successful, often remaining busier than all other stores in the area combined.

I really don't see why the two companies needed to be combined. Imo, merging does not help two companies that are loosing money and who's stores are ancient and small, and what's the point of concept stores if your company could never afford to roll them out?  Sears Essentials was probably a great idea, but it's not like they could have ever done it with the shape they're in. As it stated in the report, they won't even spend as much money as Macy's revamp their decrepit and ancient stores. This company has got to be able to afford to try something different, instead of just hoping for better results if they continue down the same path.

[MikeRa]

Out here in SE Pennsylvania, the 2 Sears - Kmart stores that are closing are the Sears (former Gimbel Brothers) store in Upper Darby, and the Sears in Pottstown.

[nims57]

MikeRa, I want the Modell's Sporting Goods (former 1966 General Cinema), Burlington Coat Factory (former Penn Fruit), and Red Lobster (former Food Fair/Pantry Pride) near the old Bazaar of All Nations to move to the Upper Darby Sears building once it closes.

[MikeRa]

MikeRa, I want the Modell's Sporting Goods (former 1966 General Cinema), Burlington Coat Factory (former Penn Fruit), and Red Lobster (former Food Fair/Pantry Pride) near the old Bazaar of All Nations to move to the Upper Darby Sears building once it closes.

There is a Modell's Sporting Goods that is a block or 2 up 69th Street from the Upper Darby Sears, at 78 South 69th Street, so that one would be the that would move instead of the Clifton Heights Modell's (former General Cinema/Eric/United Artists Theatre).

[nims57]

I didn't know that but it sounds like an old crappy one. The Modell's in Exton is much bigger and cleaner than the Bazaar or Granite Run ones. How about they put a Modell's into two thirds of the first floor of the Sears, and a Red Lobster in the other third. Burlington could take up the whole second floor.

[KmartDanny09]

Well, the Kmart I am working at is closing. Good 'ol Kmart 4276 in Toledo.

We found out the day the list was released... I learned the news from a co-worker who had posted the news via Facebook. Later that night, when I worked, some co-workers and myself were dragged back to the office to hear the news from the store manager. He even said, 'Well,if you've read the paper or watched the news you won't be surprised by what I'm about to say....' Then read from a script some "kind" words that came from Eddie. We then had to read and sign some documents saying that we wouldn't talk to the press and stuff.

As I worked the service desk, one of the assistants and the loss prevention manager ripped out our Western Union and Ohio Lottery terminals. Floor associates were busy removing any trace of layaway signage. My co-workers fought back tears as we all wondered, why?

The worst part is... They gave us no reason. Our lease had been resigned last year. Last year our sales increased 12%, the only store in our district were the employees got bonuses for positive sales variance. We got new carts. We got an expanded pantry department. Things were looking good. If I had to venture a guess, it's probably our ridiculous shrink. We've only had loss prevention in the store 6 out of the last 12 months and over $165,345 in merchandise walked our doors. But of course, you can't explain that our shrink has been omproving and the assholes who have been stealing from our store have finally been fired.

I love my store. I love my job. And for the longest time, I loved the company. After finishing my degree, I was set to enter the management training program and I'm on track to do an internship this summer. But this news has got me wondering about any future with Kmart. Why waste any more time with a sinking ship? Do I really want to risk being placed in a store that may close? Do I want to work for a company that's only strategy is close stores without reopening any new ones?

...Honestly, I think this store closing may be just what I need to seek other management opportunities with better retailers.

[nims57]

KmartDanny09, why do they not want you to talk to the press?

[retailisking]

Not to add to the bad vibe, but it looks like Chapter 11 could be coming to Sears Holdings. CIT has reportedly shut off supplier credit, and when one factor bails, others may follow.
http://www.zerohedge.com/news/sears-noose-tightens-cit-leaves-company-cold-no-vendor-financings

[ynkeesfn82]

I heard the Sears Essentials in Putnam, CT is becoming KMART again a couple months.

[Zayre88]

Here's a list of 80 closings.

http://searsholdings.com/about/122711_close.pdf

When will they release the rest of the list ??  They said 100 to 120 stores.

[dmx10101]

Here's a list of 80 closings.

http://searsholdings.com/about/122711_close.pdf

When will they release the rest of the list ??  They said 100 to 120 stores.

I was told by one of my sources that it should be coming out anytime soon more than likely by the beginning of Feb. The remaining locations they are deciding on closing are ones they are on the fence about. They are high profile stores that have a lot of money invested in them because of remodels and they are afraid to lose them.

[retailisking]

This Sears in Suffolk, VA is closing despite not being on the initial list. I wonder if there are similar "stealth" closures of Sears and/or Kmart stores elsewhere.
http://www.suffolknewsherald.com/2012/02/03/sears-store-to-close/

[Zayre88]

This Sears in Suffolk, VA is closing despite not being on the initial list. I wonder if there are similar "stealth" closures of Sears and/or Kmart stores elsewhere.
http://www.suffolknewsherald.com/2012/02/03/sears-store-to-close/

It would not surprise me at all.  Sears and Kmart have closed locations here and there, one by one for years...