World News

Sears announces further closures amid declining sales

Published on: August 29th, 2017

The struggling retailer has recently announced that it will close a further 28 Kmart stores.

As reported by Forbes, the latest closures are in addition to the 180 stores it has already shuttered in 2017 and the 150 stores the company plans to close before the year is over. “We continue to transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members,” the company said in a statement.

Sears has been aggressively reducing its sprawling brick-and-mortar footprint, which has shrunk from 3,400 stores in the US a decade ago to some 1,400 stores. At the same time, Sears has begun experimenting with smaller, specialised stores and plans to open several locations in the upcoming quarters.

On Thursday, it reported another quarter of declining sales and losses. During the fiscal second quarter, sales at existing stores declined 11.5%. That helped it post a loss of $251 million.

Its results topped the tepid expectations on Wall Street. Sears’ losses narrowed to $2.34 per share, compared with $3.70 per share a year earlier. Wall Street analysts were looking for a loss of $2.48 per share. Revenue slid 23% to $4.37 billion, but also beat forecasts of $4.21 billion.

Sears has been working to shore up its balance sheet after warning that it has “substantial doubt” about its ability to survive. In addition to closing stores, it has been aggressively cutting costs, selling off real estate and parting ways with some of its brands.

Shares, which have sunk 42% in the last 12 months, slipped another 2% on Thursday.

If you would like to receive our daily newsflash email, click here; you can also follow us on Twitter and Facebook and request a print subscription here.