Skip to comments.Sears to close 100 to 120 Kmart, Sears stores
Posted on 12/27/2011 6:53:42 AM PST by Kartographer
Sears Holdings Corp. said Tuesday it will close 100 to 120 of its full-line Sears and Kmart stores as it struggles to attract shoppers. Sales for the fourth quarter are off a disappointing 5.2 percent compared with last year.
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. These actions will better enable us to focus our investments on serving our customers and members through integrated retail at the store, online and in the home, said Chief Executive Officer Lou DAmbrosio in a statement.
The company will take a fourth quarter tax-related non-cash charge of $1.6 billion to $1.8 billion.
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It’s a sad irony that Sears was a pioneer of shop at home, (Sears catalog), and shop at home, (internet), is doing them in.
This is more of a business model and image issue. Sears is seen by younger shoppers as being Grandma’s store. And Kmart is seen as Walmart without the low prices.
Wonder if there is a list of stores yet?
Why don’t they just copy the WalMart business model?
It seems to work well............
everyone has copied the walmart model .. even at nice stores almost 100% of the goods are china made
I like to go to K-Mart.
There’s never a crowd...........
Did Sears contribute to the Democrat campaign in 2008?
Or usable aisles. Whenever another store makes it difficult to get from one place to another with too many in-aisle displays and pallets of merchandise (I'm looking at you Kroger) I say they are getting K-marty.
The year before that, I bought an air filter cartridge online, and they sent me an empty box. It took two acts of Congress to get that resolved too.
Now a days, Sears carry sub standard , overpriced stuff. If you want to over price, atleast provide quality.
Unfortunately, even if there are only a dozen customers in the entire store, it will still be difficult to shop and I'll get stuck behind five at the only open register.
Same as going to Burger King drive-thru, never a line.
Although their crummy fries have been $hit-canned and they have "New-Improved Fries" may be they will get some folks back.
I eat only a few of the fries anyway. Most of them go in the trash...........
Millions upon millions of "unemployed" (no job, no longer looking for a job, underemployed, temp, contractor) exist.
The unemployed buy nothing or far less than normal.
As a result, sales drop at retail stores.
The retail stores layoff (or fire, if you prefer) employees.
The unemployed buy nothing or far less than normal.
Sales drop further at retail stores.
More stores close, forcing more layoffs (or firings, if you prefer).
The unemployed buy nothing or far less than normal.
And so it goes....
The other side of "the coin" is this.
The unemployed rely on state monetary support.
The unemployed rely on fed welfare programs.
Therefore, the unemployed depend on govt largesse.
The unemployed cause govt. to grow to support their increasing numbers.
Govt must collect more money to support growing welfare state.
Governments (both state and federal) must either raise taxes or borrow money.
"The Rich" begin to protect their assets (eg: move assets out of the country, or move physically to a lower tax area).
Govts borrows more money to "feed" the welfare system ruining its already damaged credit rating, for lenders know that neither the US nor many of the states therein cannot pay what it owes now much less meet its obligations in the future.
The unemployed begin to default on debt (credit card, medical, and housing to name a few).
Lending institutions wind up with worthless "assets" on their books and dwindling cash reserves; they must cut overhead to remain solvent.
They then "lay off" (or fire if you prefer) employees.
This increases the unemployed.
The government falsifys the "unemployment" count by saying that 2.5 million jobs that have left the country no longer exist and therefore can no longer be counted.
The unemployed - ever increasing - buy nothing or far less than normal.
Factories manufacture less product causing factory closures; resulting in more unemployed.
The govt mounts a "spin" campaign damning "the rich" and demanding an increasing amount of money from them.
The unions join the campaign screaming for "workers rights" and raising the dues of the few employed members they have left; for they need money to retain their "lifestyles".
"The rich" protect their assets by moving them out of the country; shutting down factories, and physically moving to lower tax areas.
Read "Atlas Shrugged" if you've not already. Enjoy the story....but look for the lessons.
Your biggest fear is this - in answer to the question, "Who is John Galt?"
There isn't one - we're on our own.
Well, if you ain’t gotta lot of customers, you can put more junk in the aisles!.................
This can’t be true....the economy is seeing steady increase in activity. Job numbers are fantastic; more employers are hiring and less and less are applying for unemployment. Each day the DOW rises a couple hundred points, it is a boom town economy.......how can this be true? It can’t all just be because the Muslim Obama is running for re-election, can it?
Sears and K Mart needs to go back to what made them the stores. Sears needs to go back to their catalouge, back to American made Craftmen tools and to get Whirlpool to make their Kenmore appliances. KMart needs to be the anti-WalMart, by being an slightly upscale discount store. They needto be between WalMart and Target.
“You’ll never hear a woman say she bought this dress at Sears” = Mrs Bender 30 minutes ago after hearing of the closings on the radio...
Rainman said it best ...
Our Sears has a Lands End department. I buy all my girls dresses in there year round. They are the only place that sells decent clothes for girls. I don’t want my girls looking like tramps and I don’t have time to run from store to store to dig through garbage to find one gem. I’ll have to go strictly to online shopping for them if our store closes.
IMO, Sears went downhill shortly after they became the “softer side of Sears”.
Apparently Sears needs to copy A&F and Hollister and have shirtless models hang out in the lobby of the their stores.
No lines at Hardees here in mid America. Food not bad either.
The economy continues to improve and Obama’s approval is moving up quickly.
We’re in great shape!
I won’t be surprised if my local Sears (Shoreline, WA) is on the “close” list. It’s a two-story building that often seems to have only 10-12 customers in the entire store. It’s had a “going-out-of-business” feel for years, just like the local Denny’s. (One of the two local Denny’s has already closed.)
The demise of Sears was foreseen long ago. It started when Sears stopped being a consumer oriented business and wanted to become a huge conglomerate.
They did this by building dependency among their suppliers, then threatening to cut them off unless they slashed their prices, and then, after hurting them, to buy them out at a discount. Then while keeping the good reputation and status of that brand name, to ruin it by slashing quality.
Many good American businesses were destroyed this way, and Sears made a lot of enemies.
At the same time, Sears ended its long held a hire-to-retire policy that created strong loyalty among its employees, instead firing those with seniority and hiring cheaper replacements. So their service quality withered.
Then, much to their surprise, this started to hurt their business. Granted, those responsible had either been promoted to upper management or moved on to ruin other corporations.
But Sears was ready to blame everybody but themselves for their decline. The big merger with KMart, of a failing business bought up by another failing business, was just the icing on the cake.
Yet it is a long, slow, terminal illness that afflicts Sears and will eventually kill it. A tragedy, really, but that’s what you get when you hold management vipers to your breast.
That is because Burger King puts everything in the Microwave. They did that with me with my burger years ago and has never been there since.
“The unemployed buy nothing or far less than normal. “
I’m glad you repeated that several times. Its a fact a lot of people apparently ignore or don’t factor in.
My wife buys some things from Lands End like the slippers she gave me for Christmas. She still shops the old fashioned way, out of a print catalog using the telephone. L/E must mail us a catalog 12 times a year. I noticed Craftsman Tools in our local Ace hardware store recently.
The K-mart stores need a big overhaul in design. Even the newest one I have in my area does not look as good as my 5 Target stores and the Wal-Mart stores in the area.
K-Mart is what is holding Sears down, just like Eckerd Drugs used to do with JCPenney. The quality of the merchandise that is at Sears is much better than the quality of the stuff at K-Mart.
Some of older members here might remember the previous name of K-Mart called SS Kresge. I used to have one in a local mall just 20 feet away from the Sears anchor store.
I bought a $1200 laundry washer from sears around the 1st of Nov...now on 3rd unit ...Fairly significant problems right out of the box. They could never promise delivery dates as they have build to order (I belive Whirlpool but not sure) and the delivery people are not the manufacturer or sears people. Last one took over a month for delivery and was late several times. The instore people were very nice but would come out and say that they couldn’t get delivery any faster then a customer could get it done online/phone.
I don’t go to Burger King because as a Type II diabetic I can’t be eating 1,800 calorie meals.
Ha! Love that she shops that way. I finally showed my mom how to shop online and she had all her Christmas gifts purchased in one evening and delivered to her door several days later. She loved it! :0)
The local big mall Sears is the same way. I go there for eye exams and I am often times one of the few people prowling the aisles. The product lines and store in general look old and slightly depressing. The online shopping phenomena will kill many of the old retail giants.
As far as I know my late father had only one credit card to his name- an old 60’s looking Sears card. When I was growing up all my clothes came from either Sears or JCPenny. It’s truly a sign of the times that this icon of American consumerism is dying off.
what happened to Kmart is that they got "dirty" looking....poor merchandize layout...too crowded with stuff...and their prices really were not all that great....
Fred Meyer here on the west coast is a little bit up the food chain from the Kmarts and Walmarts...clean stores, with a supermarket attached, decent prices, and most of all, they have good coupons....
I predict the next big closing will be in the grocery dept and I predict Albertsons will close many stores...our local one can't keep up with Fred Meyer...
By the way any of you guys remember Zayers? We used to go to one in Athens Ga. years and years ago till it closed.
My 13 yr old daughter wanted something from Abercrombie and I said for the cashier to use a bag that didn’t have a naked chest on it. My daughter was completely mortified.
My father use to say there were three things one HAD to do die ,Pay taxes, and pay Sears Roebuck. Sears was once the biggest and best for the middle class, so much so they did not think they had to conform when Wal-mart came along. That was the death nail for them.
Albertsons are already closing in Texas!
The Obama economy at work.
Yet dollar stores are thriving....
anecdotally, it was mostly on-line and gift card shopping for the guys in our house, while the women had to go to the store to do touchy-feely.
“and shop at home, (internet), is doing them in.”
That isn’t doing them in. Their LOUSY business practices are doing them in. They still use a 1980’s computer system for cash registers that takes 10 minutes just to try to make a return, or crashes so often that I don’t think there has been a time in the past several years I didn’t have to wait for them to try to get the sale through. They simply are doing themselves in.
Recently we were in the market for a upright freezer. We had landed on a model from Lowes and decided to check out Sears. We bought one from Sears, cheaper and appeared to be better built, and it was delivered in two days. so far it has been a very good purchase. I have to admit that I was very sceotical when we went to Sears. I have my fingers crossed.
“he finally admitted that the stores and the online operations were two entirely different entities and that there was no integration between the two.”
That is another major thing. I bought something online, received a confirmation email to pick it up, went to the store and they didn’t actually have it for pickup, never did.
My new slogan: Hope and change, huh?.....Got any left? Idiots!!!
My husband had a very similar experience. He needed a new air filter for his air compressor and when he went to Sears to purchase one, he was told he could only order it “on-line.” What a mess - they sent him only one and he ordered four, and then it took six phone calls to get the other three (and they even tried to charge us for the shipping on the three they didn’t send).