Posted on 12/27/2011 5:20:29 AM PST by tobyhill
Sears Holdings Corp will close up to 120 stores in its Kmart and namesake chains, blaming poor sales of consumer electronics so far this holiday season and saying it would focus its energy on its better performing stores.
Sales at Sears Holdings, whose chairman and top shareholder is hedge fund manager Edward Lampert, have fallen every year since it was formed through the merger of Sears and Kmart in 2005.
And so far this holiday season, the drop has continued. Same-store sales at Kmart were down 4.4 percent in the current quarter through Christmas Day, and down 6 percent at Sears' U.S. stores. Companywide, they were down 5.2 percent, the company said on Tuesday.
Sears said that typically, it would keep "marginally performing" stores open to give them time to improve, but "we no longer believe that to be the appropriate action in this environment."
The store closings follow its announcement last quarter it would shutter 10 stores. Kmart and Sears have a combined 2,177 U.S. full service locations and another 500 in Canada.
(Excerpt) Read more at reuters.com ...
Where will be stores that will be closed?
The company has so far declined to state which stores will be closing.
According ‘the media’, this was supposed to be a booming upsurge in the economy from Black Friday projections.
The reason is did so well is because people were forced to fight that madness or just settle for lesser presents. In other words, they aren’t cushioned as much to just go to regular sales.
Considering my kids’ gifts consisted of Flea Market (and cleaned up/repaired) bikes and dollar tree (school supplies, make up, art supplies, etc...) I’m sure I’m not the only one that went WAY down on spending this year.
My guess is democrat-controlled areas, where private enterprise is a punishable offense.
More fun is what will the closings be blamed on by the dems? Will they use the EU crisis or hold that for bigger economic indicators?
Great sales. Rotten margins? If so, nuff said.
snip-
Sears has yet to determine which stores will be closed, but there has been a clear shift in where the retailer will devote its resources.
http://finance.yahoo.com/news/sears-close-100-120-kmart-sears-stores-113133071.html
Between tools and clothing, our family did its part for Sears this year. I’d really hate to see Sears vanish from the landscape. We have a lot of Craftsman tools out in the garage and workshop, and with two teenage sons just getting started on their own cars and tool collections, we’re not done with Sears yet! I was surprised to see that they attribute much of the sales sag on electronics. When I think of electronics, Sears really doesn’t come to mind. Appliances, tools, kids’ clothing and Lands End - yes; electronics - not really.
Come on Seabiscuit!
My spending was way down and my Christmas surprise was finding some old silver dollars in the basement in pristine condition I had no idea was there.
I also have a lot of Craftsman tools.
It’s possible that Craftsman will be preserved even if Sears goes under. Summit Racing is now selling them and I’m sure there will be other retailers doing so.
I suspect that Craftsman will be sold off and spun off as an independent entity or part of another company as the Sears ship sinks.
But whether or not that new Craftsman will honor the replacement warranties and provide parts support on the old tools is an interesting question.
Personally, I could see a lot of benefit if Craftsman went independent or became part of a company that cared about the brand. IMHO, Sears has been milking the brand for years, cheapening the tools, making it harder to get replacements when the cheaper tools break, and generally focusing on gadgetry rather than the bread and butter of solid tools at decent prices.
Just MHO...
Like always, they'll blame it on non-union Walmart and tax-free internet sales.
-——Rotten margins?——
or perhaps no margins
Honestly I can’t see where these folks all of a sudden had all this money to spend for the holidays?
Like the post above, my spending was way down too. Gifts were had by all, but for adult family & friends they received homemade artisan style breads, canned jams, teas & coffees. That is a huge difference from that holiday sweater.
I know I keep hearing these glorious reports on sales, but as someone else mentioned you have got to check the margins. Even I did a bit of personal shopping on black Friday to score an $80 pair of boots for 24.00 including the shipping. You know they took a lose on that and I landed several mock t-necks for under $8. They essentially made no money on my purchase. The sales would count into the sales numbers, but they had a negative margin.
Bless them for that as I really, really needed the boots and fresh mocks.
I would imagine they will close it or rebuild it, the land it sits on is prime retail space.
——they’ll blame it on non-union Walmart———
Then there is Land’s End. Land’s End is part of their conglomeration. It would be interesting to see the growth figures for Land’s End.
Much of our holiday gift shopping was done at Land’s End. It is easier and better to buy online than go to K mart or Sears.
Sears stores aren't closing. Sears ownes K-Mart, those are the stores that are closing.
Bush?
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