Retail crisis: Sears and Kmart to close even more stores

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Retail crisis: Sears and Kmart to close even more stores
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Sears Holdings isn’t finished shutting down under-performing Sears and Kmart locations quite yet.

In a news release dated April 21, the company said it has made significant progress in its restructuring program, with $700 million in annualized cost savings so far.

Sears hopes to reach $1.25 billion in annualized cost savings in 2017, up from its $1 billion target.

Read more: The harsh reality of what’s happening to America’s shopping malls

Sears Holdings to close more Sears, Kmart locations

The initiative began earlier this year with closures of 150 non-profitable stores, which included 108 Kmart and 42 Sears locations.

Now, the retailer says 92 under-performing Kmart pharmacies and 50 Sears Auto Centers are shutting down. No list of the affected locations was immediately available.

Meanwhile, Business Insider has compiled a list of additional Sears and Kmart stores that are quietly being shut down, according to local media reports.

Here’s the list so far:

Kmart

  • Livonia, Michigan
  • Kahului, Hawaii
  • Beavercreek, Ohio
  • Meadville, Pennsylvania
  • Mill Hall, Pennsylvania
  • East Stroudsburg, Pennsylvania
  • Spanaway, Washington

Sears

  • Miami, Florida
  • Alamogordo, New Mexico
  • Charleston, South Carolina

Sales continue to slide: Where are the shoppers?

Comparable store sales at Sears and Kmart are down a combined 11.9% so far this fiscal year, with declining store traffic and increased price competition.

Amid the challenging retail environment, more closures aren’t out of the question.

“Consistent with our ongoing strategy of focusing on our Best Stores, Best Categories and Best Members, we will continue to take difficult yet necessary actions,” said Sears Holdings chairman and CEO Edward Lampert. “As we sharpen our focus on profitable areas of our business, we will also continue to closely evaluate the longer-term viability of stores where a clear path to return to profitability is not in sight.”

In other company news, Jason Hollar has resigned as chief financial officer after six months in the role. Rob Riecker has been named his replacement.

Read more: These major retailers are closing more than 3,000 stores this year

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Mike Timmermann About the author:
Michael Timmermann paid off his mortgage in two years. Now, he shares his money-saving tips on his blog, Save on Almost Everything.
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