Is Kmart closing down? Here’s what the retailer says about those liquidation rumors

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Is Kmart closing down? Here’s what the retailer says about those liquidation rumors
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Sears Holdings is responding to a Business Insider report that included interviews with anonymous employees who say they believe Kmart is on the verge of shutting down.

Read more: These 5 retail brands have come back from the dead

Rumors fly over Kmart’s future

According to the report, employees say stores are being entered into numbered phases and all merchandise in the stock rooms has been moved to the sales floor, which some fear is part of a liquidation plan.

A few days later, a second Business Insider story echoed the employees’ concerns, showing one Kmart location in disarray.

Clark.com reached out to Kmart to see if the accounts from the employees were accurate, but we did not get a response. However, Sears Holdings later shot down the claims in a blog post:

“Our store associates are currently rolling out a phased project that gets our newly-delivered products on the stores’ shelves immediately rather than in the stock rooms and ensuring that the member does not wait in line at the checkout. We’re focused on giving our members a “WOW” experience and this change is helping our stores operate more efficiently.

In other words, the changes are designed to make shopping at Kmart a better experience. 

Sears Holdings says Kmart associates are spending more time assisting customers and members as a result of the steps to improve efficiency. 

And the company claims some associates say their jobs are now simpler and more enjoyable.

Kmart has about 900 stores remaining after its latest round of closings, and its revenue is about 4% of Walmart, according to Fortune. But Sears Holdings says it’s not giving up on Kmart.

“Sears Holdings is highly focused on restoring profitability to the company and Kmart remains a key part of our asset portfolio. We’re proud of our associates for the work they do each and every day to help us continually improve and serve our members.”

As part of its turnaround strategy, Kmart has brought back Bluelight Specials and introduced Freebie Saturdays – free treats for kids 12 and under.

The retailer says it’s focused on making shopping fun again for the whole family. 

Read more: These 10 major retailers are each closing at least 100 stores

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Michael Timmermann paid off his mortgage in two years. Now, he shares his money-saving tips on his blog, MichaelSaves.com.
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