Sears going out of business sales will be happening across the country this month, and it looks like Kmart will be joining in. With hundreds of stores expected to close before the year ends, consumers may find sales bigger than the Black Friday, Cyber Monday, and Green Monday sales combined.
Just last month, CNN reported that approximately 130 Sears and Kmart stores would be closing, but recent reports indicate that at least 235 stores will be locking their doors for good, leaving thousands of employees without a job.
— Scott Lasley (@scottiehutch) June 6, 2014
There are approximately 1,870 stores nationwide, including 1,077 Kmart stores and 793 Sears stores. While only 235 are slated to close before the end of 2014, there may be more closings to come. Allan Ellinger of MMG Advisors, an investment bank that specializes in fashion and retailing, tells CNN that the number of stores that are closing is a sign that both Sear and Kmart may not be around “long-term.”
“Our stores are often in the wrong place and are often too large for our needs… closing down shop in numerous locations seems to be the only way alleviate the damage to business.”
The New York Post reports that Sears reported a loss in the third-quarter of $548 million, which is nothing new for the retailer — the company has reportedly booked losses for nine straight quarters. Eddie Lampert, Sears chairman and CEO, tells the Post that in addition to closing 235 stores, the company plans to sell 200 to 300 stores to a real estate investment trust (REIT). Under this plan, that will supposedly increase cash flow to the ailing company, Sears Holdings would sell or lease stores to a separate company and then lease them from the trust.
ABC News reports that back in the early 1980s, Sears was the nation’s largest retailer by revenue. By the end of that decade, Walmart became the frontrunner. Sears and Kmart continue to lag behind not only Walmart, but other popular retailers, including Costco and Best Buy.
However, it’s not just Sears that is feeling the heat in the retail world. As previously reported in the Inquisitr, Target has been experiencing “years of decreasing profitability” and will shutter 19 stores by early 2015. The retailer closed nine stores in 2014 and another 11 will close in the beginning of the new year.