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Sears and Kmart to close up to 120 stores on poor sales | Sears and Kmart to close up to 120 stores on poor sales |
(40 minutes later) | |
Up to 120 Sears and Kmart stores are to close, the US retailer has revealed. | Up to 120 Sears and Kmart stores are to close, the US retailer has revealed. |
Sears Holdings, the department store group which owns the two major retail chains, blamed falling sales, particularly of big-ticket items. | |
In the eight weeks to Christmas Day, sales at Kmart fell 4.4% and by 6% at Sears. | In the eight weeks to Christmas Day, sales at Kmart fell 4.4% and by 6% at Sears. |
The company, which has 2,200 outlets in the US, expects the closures to raise up to $170m (£108.5m; 130m euro) as their stock is sold off. | |
Both Sears and Kmart have experienced a decline in demand for consumer electronics, amid fears of another US recession. | |
Kmart has also reported a decline in clothing sales over the same period. | |
Chief executive Lou D'Ambrosio said: "Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model." | Chief executive Lou D'Ambrosio said: "Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model." |
The firm's third quarter sales saw the company post a loss due to weakness in its Canadian stores, soft electronics sales and struggles in clothing and pharmaceutical sales at its Kmart unit. | |
It added that it expected fourth-quarter earnings to be less than half of last year's amount. |