HOFFMAN ESTATES, Ill. — Sears Holding Corp. on Tuesday said it planned to close 100 to 120 underperforming Sears and Kmart stores, citing ongoing sales weakness.
The company did not yet disclose the locations of the planned closures or the balance among Sears and Kmart locations. It has already shuttered most of its Super Kmart locations offering groceries and it was not clear if any additional Super Kmarts would be closed as part of this announcement.
"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model," said Lou D'Ambrosio, chief executive officer, in a statement.
"These actions will better enable us to focus our investments on serving our customers and members through integrated retail at the store, online and in the home."
In addition to the store closings — which the company said would generate $140 million to $170 million through inventory sales and additional cash though the sale or sublease of the sites.
The company said that although in the past it has kept ³marginally performing stores open, it said it "no longer believes that to be the appropriate action in this environment," and will instead focus on its best-performing stores.
The company said comparable-store sales overall were down 5.2% for the eight weeks ending Dec. 25, and down 2.6% year-to-date.