Sears, Kmart to shutter stores
Sears Holdings Corp. plans to close between 100 and 120 Sears and Kmart stores around the country, but has not pinpointed which ones or how many yet.
The company has more than 4,000 stores in the U.S. and Canada. Sears has 18 locations in Maine, and Kmart has five. The corporation’s shares dipped to their lowest price today in more than three years, to $36.51, before rebounding slightly, according to the Associated Press. Revenue at most Sears and Kmart stores fell 5.2% for the quarter, the company reported, which includes the critical holiday season. Fourth quarter adjusted earnings will be less than half the $933 million the company reported for the same quarter last year, according to the AP.
To improve its performance, Sears said it will concentrate on profitable stores and will no longer support "marginally performing" locations. Analysts say those locations have been hurt by rival stores like Macy’s, Target and Walmart. Wages of the company’s core customers – middle-income shoppers—have failed to keep up with the higher costs of food and other household basics.
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