Sears sells off its most profitable stores
Facing heavy losses, the company has sold nearly a dozen stores in the last year and a half.
A struggling discount retailer is shedding stores in a bid to boost its financial position.
Sears (SHLD) has sold off almost a dozen stores over the past year and a half. The stores, which are among the retailer's most profitable outlets, are scattered across the U.S. and Canada. There are 2,000 Sears and Kmart stores in the U.S. The company also operates 148 Sears locations in Canada, The Wall Street Journal notes.
Property developers say it is unusual for retailers to sell high-performing stores, instead of renovating them.
A representative of Sears told The Journal that the store sales generated enough revenue to compensate for the loss of operating income. The spokesperson also noted that the company has shuttered 300 Sears and Kmart locations since 2010, with just 2% of those performing at or above expectations.
Falling store revenue has hit Sears hard in recent years. The company has lost more than $4 billion dollars in just two years, prompting the retailer to look to asset sales to raise $500 million in needed cash. Sears has raised $277 million from selling stores and leases through the second quarter of this year.
Shares of Sears fell more than 1% in Wednesday morning trading.
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I wish they would keep their tool and outdoor store departments alive somehow.
And I doubt that putting Spanish as the first language on their signs helps them much with their old customer base.
i have to agree with all...i used to go to sears and use sears exclusively for major appliances
in home repairs etc. when i went into sears last year for a new washing machine the
person waiting on me could not answer my questions about the washing machine and
probably couldn't have cared less. i should have known better since i called on the home repair number once and got someone in india - here is a major reason for sears failing-who did not understand that i needed help with a chain link fence for my yard. before i knew it, i was talkiing to someone in the jewelery department, i guess because of the word chain. we all know they are
working off a script over there in india so they look for the nearest word or phrase...... so
sad. too bad. taking the catalogs away too was a terrible mistake. i am old and do not possess a computer to shop from. bad sears, bad bad bad
I agree with several postings, bring back the commissioned, educated sales personnel for the larger items, go back to making good old American Craftsmen tools, stand behind their product and for goodness sakes stop buying clothes from the Kardashians. People do not want to wear clothes that show every bump and bulge. As for K-Mart....you have 4 or more registers, open the damn things up and clean the stores.
I know I am not a CEO but common sense tells me that selling your most profitable stores isnt a good way to stay in business.
Then again like I said I am not a CEO and they supposedly know what is best for the companies they run because they have been in high management positions for years.
Worked for Sears from 1971 to 1993, when my store closed. I was downsized out of a job. Arthur Martinez was CEO then and he started the downward spiral. I go into a Sears Store now and I am shocked that they are still opened, since no one is in the store. They have lost market share year after year because they don't compete. They must not want to complete because they have walked away from business and business, instead of trying to fix what is broken. Can't make money in catalog - walk away from the business. Can't make money in home improvement - walk away from the business. Can't make money in furniture - walk away from the business. Can't make money in appliance service - walk away from the business. Need I go on? There is no fight left in them!!!!! Rape the company and take your money. It's easier that way. Read "Catalogs and Counters" to see them in their prime. But I doubt that the current management ever even heard of the book!
Sears needs some newness. It feels old and past it's time. Their tools are too expensive also. Also who wants to wait weeks for an appliance when you can get it the same day and even have it installed for free.
As for Kmart all it is, is a upper scale dollar store.
Sears is about to go under; my own opinion, based on past experience. Long ago, and light years away, I worked for Carter Hawley Hales stores. The largest retail conglomerate of its day.
Carter Hawley Hale Stores began selling property in the late 1970's. The reason was, "We are in the retail business, not real estate." A-hem, a-hem...
But if there weren't hard times, why sell valuable property? Although some of its store holdings, like Neiman Marcus, continued on under new ownership, Carter Hawley Hale is no more.
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