Tumbling sales has forced the American departmental store chain, Sears Holdings to shutter its non-performing retail stores across the country.
The US-based department store chain recently announced that they have marked out 100 non-profitable Sears and Kmart stores, and the selected 63 (out of 100) for closure in the coming time.
It is pertinent to mention here that Sears Holdings owns both Sears and Kmart that had 3,500 stores when merged back in 2005. They closed around 400 stores in the past one year and currently operates 894 stores remaining in their repertoire out of which 63 will soon be closed.
Interestingly, the company initially announced to shut 72 stores but later came up with a list of only 63 stores (48 Sears and 15 Kmart stores) in 29 different US states. While, the other 9 stores will be further evaluated and the decision will be made then.
Markedly, apart from Sears and Kmart, Sears Holdings also operates Roebuck and Co. which is a renowned apparel brand in America.
The retailer claimed that their overall revenue fell by 31 per cent in three months ending 5th May 2018. Out of which most of the percentage was due to the previous stores’ closings. However, 12 per cent sales reduced in the stores that are currently functioning.
Sears Holdings reported a loss of US $ 424 million in the first quarter of 2018 because of the low sales and the American company’s last profitable year was 2010, since then they have suffered a loss of more than US $ 11 billion.
