Sears to close 120 Sears and K-Mart stores

BIV

I'm Biv Dick Black, the Over Poster.
Apr 22, 2002
79,201
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Seattle
#1
Merry Christmas.


Sears to close more stores as holiday sales slump

(Reuters) - Sears Holdings Corp will close up to 120 stores in its Kmart and namesake chains, blaming poor sales of consumer electronics so far this holiday season and saying it would focus its energy on its better performing stores.
Sales at Sears Holdings, whose chairman and top shareholder is hedge fund manager Edward Lampert, have fallen every year since it was formed through the merger of Sears and Kmart in 2005.
And so far this holiday season, the drop has continued. Same-store sales at Kmart were down 4.4 percent in the current quarter through Christmas Day, and down 6 percent at Sears' U.S. stores. Companywide, they were down 5.2 percent, the company said on Tuesday.
Sears said that typically, it would keep "marginally performing" stores open to give them time to improve, but "we no longer believe that to be the appropriate action in this environment."
The store closings follow its announcement last quarter it would shutter 10 stores. Kmart and Sears have a combined 2,177 U.S. full service locations and another 500 in Canada.
Sears blamed poor consumer electronics sales in a tough economic environment "especially for big-ticket items" for more than half of the decline in its namesake chain's domestic same-store sales.
It even reported lower layaway sales, which are designed to allow lower income shoppers to pay for items in installments.
Sears Holdings said the lower sales and margin pressure would lead to adjusted fourth-quarter earnings before interest, debt and amortization of less than half of the year-ago quarter's $933 million figure.
Last month, Sears reported a much wider than expected quarterly loss as higher markdowns and pricing pressures in appliances squeezed margins.
The retailer, home to brands including Craftsman tools and Kenmore appliances, expects to earn $140 million to $170 million by selling of inventory in affected stores and selling or subleasing store space.
Sears also expects to record a non-cash charge of $1.6 billion to $1.8 billion in the fourth quarter related to a valuation allowance on certain deferred tax assets.
(Reporting by Phil Wahba in New York, and Supantha Mukherjee in Bangalore; Editing by Anil D'Silva, Roshni Menon, Dave Zimmerman)
http://news.yahoo.com/sears-close-120-stores-113743523.html
 
Dec 8, 2004
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#2
Went into the K-Mart Christmas eve in Newington... no body was in there...
 

Begbie

Wackbag Generalissimo
Jul 21, 2003
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#3
I had read an article a few weeks back on the 10 brands/companies that may not survive 2012 or "the foreseeable future" and Sears Holdings was there. Here it is. Saab made the list as well...and they've already shuttered.

Sears should've never taken on Kmart. There was just no way that store could compete with Walmart or Target. They've got alot of stores across the US, but I rarely ever see a Kmart that doesn't look out of a time period between maybe 1977-1988. I've been in the one here in Raleigh maybe 6 times, and I literally feel like I went back in time. Low ceilings, departments that just kinda run together, 70's orange trim, really cramped aisles. Meanwhile, just behind it is a huge mall that's 8 years old, a 6 year old Super Target, and a Super Walmart that was just built within the year. I think Sears Holdings just realized the task involved in updating these Kmarts and just threw in the towel. Meanwhile, it seems to be taking Sears with it. And Sears really hadn't been doing well to begin with.

If they end up going under, I wonder what will happen to all of those lifetime warranties on Craftsman tools. That was the big selling point for buying Craftsman.
 
Dec 8, 2004
49,476
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#4
I have noticed it the past little while that the local ACE store is carrying Craftsman now... hand tools... vacuums... and few power tools.

Edit:

Sears Holdings Corp. SHLD -20.65% has agreed to sell its popular Craftsman tool brand through Ace Hardware stores, as the company turns again to outsiders to help grow its sales.

Sears and Ace Hardware Corp., the largest retailer-owned cooperative in the hardware industry by sales, said Friday they'll start the partnership with 100 Ace stores selling about 10% of the total Craftsman line in May. The move confirms months of speculation that Sears might turn to an outside hardware or home-improvement chain to help sell the popular line of hand tools, portable power tools and tool storage as sales at Sears namesake department stores have continued to struggle.

Guenther Trieb, president of Sears Brands Management Corp., said in an interview that Sears will decide later whether to roll out the store-within-a-store Craftsman offering to all 4,500 Ace stores. But all stores in June will be allowed to sell a smaller grouping of Craftsman tools for a Father's Day promotion.

"We believe it is a great strategic complement to our current format," Trieb said. "It is a strategic move to drive the overall value of the brand."

Ace currently sells tools made by Stanley Works SWK -0.15% and by Black & Decker Corp. , two companies that are in the process of merging.

Sears roughly 900 department stores will remain the "headquarters" for sales of Craftsman, which has some 6,000 stock-keeping units, Trieb said. And the Ace stores will also complement Craftsman's presence in about 80 Orchard Supply Hardware stores and 110 Sears Hardware Stores in off-mall locations, he said.

Sears declined to discuss Craftsman's recent business trends but said the line remains the market leader "by far," Trieb said.

With its lifetime guarantee, Craftsman tools have long been popular in the U.S.

Popular Mechanics magazine readers last year named Craftsman as their favorite hand-tool brand, and market-research firm Harris Interactive's 2009 brand-equity ranking listed Craftsman as tops for tools.

Earlier this week, Sears said it will allow franchisees to open Sears Auto Centers. And on Feb. 11, the company's brand-management business announced a trademark licensing deal with a manufacturer to sell DieHard battery chargers, jump starters and other accessories to outside retailers.

Sears has said it won't rule anything out with respect to expanding sales of other well known brands, including Kenmore appliances.

"We are doing these move because we see great strategic opportunity, and we currently don't have any specific plans for Kenmore," Trieb said Friday.

Shares of Sears Holding traded down 0.1% at $94.99 in late trading Friday. Shares of Stanley Works closed down 0.8% at $55.92, while Black & Decker ended regular trading down 1% at $70.62.

Analysts have said Sears, which reports fourth-quarter results Tuesday, must do something to revitalize sales. Sales trends in the department stores weakened through the first two months of the Jan. 30-ended fourth quarter, according to a Sears update Jan. 7. Comparable-store sales were running at a 6% decrease, on top of a 10.7% decline a year ago and compared with a 4.6% drop in the third quarter.

Sears said tools and automotive sales had been stronger, but large-ticket hardline categories offset the increases.

For its part, Ace seems like it could use a boost to its tools business. The cooperative earlier this week said domestic merchandise sales were most hurt by declines in the tools and electrical categories.

The cooperative reported net income of $95.7 million for the Jan. 2-ended fiscal year, an 11.5% increase. Full-year revenue fell 10.4% to $3.5 billion.
Link
 

gleet

What's black and white and red all over?
Jul 24, 2005
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#5
(Reporting by Phil Wahba in New York, and Supantha Mukherjee in Bangalore; Editing by Anil D'Silva, Roshni Menon, Dave Zimmerman)
They outsoruce reporting now? What does Supantha know about Kmart from over there in Bangalore?
 

blazin

Registered User
Dec 9, 2004
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#6
Last K-Mart I was at over the summer, somebody took a shit in the toy department

I even have a pic if anybody would be interested.
 

steve500

Registered User
Oct 20, 2008
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#7
Sears should've never taken on Kmart. There was just no way that store could compete with Walmart or Target. /QUOTE]

Wasn't it kmart who bought Sears?
 

SOS

ONA
Wackbag Staff
Aug 14, 2000
48,263
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#8
The K-Mart stores sometimes have somewhat good deals on video games that are some months old. The toy department is quite large as compared to Target and Walmart.

Sears' electronics, unless it is a special sale, is mostly overpriced TVs.

There is no excitement feeling in both of the stores.
 

Mags

LDAR, bitch.
Donator
Oct 22, 2004
35,619
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#9
Last K-Mart I was at over the summer, somebody took a shit in the toy department

I even have a pic if anybody would be interested.
We're waiting....
 
Jun 2, 2005
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Dallas
#10
Until this article I thought they'd already closed most K Marts. Also Toys R Us's have been going away all around Dallas. I literally can't even think of a single one of either that's still open.
 

blee

Will Drink Today
Dec 9, 2004
8,791
459
651
western ny
#11
It was Kmart that tookover Sears.
Since then the company has spent millions trying to get the Kmarts up to par because they had no maintenance teams.
It took me 3 years to get 3 kmarts that I was assigned to, cleaned and in shape.
The organization already got rid of all the lower tier maintenance members just before Christmas.
Cannot wait for the next few months.
Already looking at getting a new job but it is not looking good.
 

bb1mobile

wackbag's special mod
Wackbag Staff
Jul 10, 2007
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#12
On line retailers and Walmart are killing these chains.
Been awhile since I went into a K Mart or Sears store.
 

blazin

Registered User
Dec 9, 2004
3,931
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#13
Ask and you shall receive!

What I noticed first was a swarm of flies in this general area. Also notice the makeshift bathroom stall.

 

ruckstande

Posts mostly from the shitter.
Apr 2, 2005
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#14
I'm pretty sure we had a company death pool and I said Sears, K Mart, and Toys R Us. Things are looking good for this guy.
 

LiddyRules

I'm Gonna Be The Bestest Pilot In The Whole Galaxy
Jun 1, 2005
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#15
Ask and you shall receive!

What I noticed first was a swarm of flies in this general area. Also notice the makeshift bathroom stall.

Suitable considering what it's next to.
 

lajikal

Registered User
Aug 6, 2009
16,412
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#16
Ask and you shall receive!

What I noticed first was a swarm of flies in this general area. Also notice the makeshift bathroom stall.

Who doesn't need to take a shit the second they walk into a store and can't waste time looking for a toilet.
 

Chino Kapone

Yo, whats wrong wit da beer we got?
Jun 10, 2005
16,959
2,196
608
#17
Been in Kmart twice last week. I knew it was the one place I could probably score the ugliest christmas sweater I could. It's only a couple blocks from my house, but it is bad. The people that work there all look like they applied at Wal-Mart and failed their drug test, so Kmart hired them.
 

CousinDave

Registered User
Dec 11, 2007
25,297
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393
Ohio
#19
The local K-Mart is one of the few Super K-Marts that were built

I'll always go to K-Mart before I will Wal-Mart


I don't understand why K-Mart dosen't sell the Land's End brand
 

CougarHunter

Lying causes cat piss smell.
Mar 2, 2006
10,598
2,574
566
KC Metro
#20
My worst K-Mart memory is when I was playing in the toy aisle while my mom was shopping. Back then they had like 5 aisles of toys. Anyway, I couldn't find her to tell her I had to go pee, and i finally just had to piss my pants because I didn't know where the bathroom was. I remember some older people catching me just as it began to flow out the pant leg of my cordouroy pants and they were just looking at me while I was doing it. Mom had to carry me out of the store and change my pants in the parking lot. It was quite embarassing and has stuck with me all these years. Absolutely worst 31st birthday ever.
 

Don the Radio Guy

G-Bb-A-D
Donator
Mar 30, 2006
69,623
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#21
Kmart was dying when I worked there 20 years ago. This isn't surprising in the least.
 

gleet

What's black and white and red all over?
Jul 24, 2005
22,541
13,853
608
Idaho
#22
My worst K-Mart memory is when I was playing in the toy aisle while my mom was shopping. Back then they had like 5 aisles of toys. Anyway, I couldn't find her to tell her I had to go pee, and i finally just had to piss my pants because I didn't know where the bathroom was. I remember some older people catching me just as it began to flow out the pant leg of my cordouroy pants and they were just looking at me while I was doing it. Mom had to carry me out of the store and change my pants in the parking lot. It was quite embarassing and has stuck with me all these years. Absolutely worst 31st birthday ever.
1 like.
 

Stig

Making America So Great You Won't Believe It.
Jul 26, 2005
80,891
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#23
When I worked at a record store, lunch at the cafeteria they used to have in the back was a big deal. Ah minimum wage...
 

LiddyRules

I'm Gonna Be The Bestest Pilot In The Whole Galaxy
Jun 1, 2005
143,241
50,526
644
#24
Fuck K-Mart. Caldor was the shit.