Sears Holdings (SHLD) already said it would close as many as 120 Sears and Kmart stores this year in an effort to turn the business around. But that wasn't enough.

The struggling retailer said Thursday it will have to tighten its belt even more. Sears is now planning to close 43 Hometown stores, 10 Sears Hardware stores and all nine stores in the Great Indoors chain. Hometown stores are independently operated, and sell hardware in mostly rural areas.

Sears is also getting rid of clothing in 10 Sears stores -- perhaps in a test run for a chain-wide initiative in the future. Instead, those stores will sell more household items such as mattresses and furniture, the Associated Press reports. Shoppers have requested more choices in those areas, the company told the AP.

Sears has been busy with a number of moves designed to stem the bleeding from its bottom line. It's been trying to spin off its Hometown and Outlet stores, but the closure of 43 of those may show how well that's going. It's also selling 11 locations to General Growth Properties (GGP).

Scratching clothing from its lineup could be a very good move for Sears. Most people don't shop there for clothes. They might pick up some clothing as an afterthought, but they visit Sears stores for appliances and hardware.

Sears is going to have a harder time competing in clothing and other areas as JCPenney (JCP) completes its transformation into a trendier, more compelling chain. Target (TGT) continues to press forward in clothing, bringing in designer names like Jason Wu and adding in-store boutiques. Sears also has Macy's (M) and Kohls to contend with.

After years of just coasting on "good enough," Sears is finally making some drastic and necessary moves.

Related reading:

• Sears, Kmart: Beginning of the end?

• A list of 79 locations Sears is closing

• Sears avoids oblivion -- for now