Kmart: We are not going out of business

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Kmart: We are not going out of business
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Amid slumping sales, it was recently announced that the discount retailer Kmart would close 64 underperforming locations across the country.

But the chain has no plans to shut down its operations, according to Sears’ CEO.

Sears Holdings CEO: No plans to shut down Kmart

Read more: These 14 major retailers are each closing at least 100 stores

In a blog post, Eddie Lampert shot down what he described as “frequent false and exaggerated claims” surrounding the future of Kmart.

I can tell you that there are no plans and there have never been any plans to close the Kmart format. In fact, we’ve been working hard to make Kmart a more fun, engaging place to shop, powered by our integrated retail innovations and Shop Your Way,” Lampert wrote.

Shop Your Way is a rewards program that both Sears and Kmart belong to.

Even before the announcement to close dozens of additional stores, Business Insider interviewed Kmart employees who feared the chain was in the process of liquidating.

Clark.com reached out to Sears Holdings for a comment at the time and never got a response. 

Later on in the blog post, Lampert said that a “significant” number of Kmart stores are profitable, but if unprofitable stores can’t be improved – they’ll be closed.

“Decisions to close stores are never easy, but we recognize that the way people are shopping is changing significantly,” said Lampert. “This is why we have made major investments in our online and mobile platforms and this is why our focus on serving members through Shop Your Way is so important.”

Lampert said Sears Holdings, which has about 700 Kmart locations, is committed to restoring profitability in a challenging retail environment.

It’s focusing on its “best members, best stores and best categories,” Lampert said.

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

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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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