The economy has hurt businesses all over the country. Some businesses have held on longer than others. Unfortunately, Sears Holdings Corp. plans on shutting down anywhere from 100 to 120 different stores operated by their company. The sales through the holidays have caused several Kmart and Sear stores to close down. Many of these stores have struggled for a while but it’s still important to figure out what the best plan of action is for this crucial time for retailers. The results were not exactly what the company was looking for during the holidays. Sears Holding Corp is not 100 percent which stores will be closing but when they figure it out, it will be released to the general public. Sears would not discuss how many jobs would be affected by this terrible loss, according to the Associated Press.
There are around 4,000 stores in North America and things are constantly up and down with the company. The trades and shares are up and down and that means the fate of the stores are always unpredictable. The revenue keeps dropping for both of stores provided by the company. As mentioned before, holidays are crucial for these sales and some stores just did not show enough sales. The company’s revenue at stores open at least a year fell 5.2 percent to date for the quarter at both Sears and Kmart, the company said Tuesday. That includes the critical holiday shopping period. The sales are declining in some stores and there is a lot of pressure to keep this many stores operating on such a tight budget.
The numbers are all over the place for both Sears and Kmart. Sears Holding also anticipates an almost 2 million charge for tax deductions from last year. Either way you look at it, it’s a big mess to try and figure out. Sears is no longer going to protect its stores that are not performing well. “These actions will better enable us to focus our investments on serving our customers,” D’Ambrosio said. Sears is sad to get these performance rates and is hoping the outlook gets better for current stores. “The results point to deepening problems at this struggling chain and renewed worries about Sears survivability,” said Gary Balter, an analyst at Credit Suisse. “The extent of the weakness may be larger than expected but the reasons behind it are not. It begins and some would argue ends with Sears’ reluctance to invest in stores and service.” Balter also said “Sears’ weakening performance may lead its vendors to start to worry about their exposure.”
The company also has strong competition with places like Macy’s. However the company is confident that they will bounce back and be better than ever. Every store has their issues and Sears Holding is hoping these changes will help the future of the company.Sears Holdings Company is Struggling by Harrison Barnes