Holiday shopping may have given some retailers a boost at the end of the year, but for some it wasn’t enough. Sears and Kmart have announced more than 100 stores will be closing nationwide.
Shopping sprees not big enough
According to the Daily Mail, the retail industry projects a sizable haul for itself in the period between Nov. 1 and New Year’s Eve. The National Retail Federation is projecting that shoppers will have bought $469.1 billion in merchandise by the time people are starting to sing Auld Lang Syne. The day after Christmas, “Mega Monday,” could potentially be worth more to retailers than Black Friday once the final sales are added up.
However, it isn’t likely to be enough for some stores. Sears, according to CNN, and subsidiary Kmart have not been able to perk up sales during the holidays as much as they would like. The parent company, Sears Holding Corporation, has announced that between 100 and 120 Sears and Kmart stores will be closing this year.
Established locations not performing
According to USA Today, combined sales at Sears and Kmart stores that have been open for at least one year declined by 5.2 percent in the latest fiscal quarter, including holiday shopping. Even the return of Kmart layaway wasn’t enough to perk up sales for the holidays. Kmart alone had a 4.4 percent decline in sales during that period while a 6 percent decline in sales was recorded at Sears, Roebuck and Co. stores.
The company projects that its revenues for this quarter will be less than half of what it earned in the same quarter of 2010. During that quarter, the company earned $933 million. Kmart stores suffered from fewer sales of apparel and electronics, while Sears sold fewer home appliances and electronics. Apparel sales at the Land’s End store-within-a-store section of Sears locations did improve, but apparel sales overall were slack.
Closing Locations to be announced later
Sears hasn’t determined which stores will be closed, but it will be the underperforming locations. CEO Lou D’Ambrosio, according to CNN, said that the company’s practice of “keeping marginal stores open” while trying to boost sales isn’t considered “the appropriate action” anymore. A list of closing locations isn’t available yet, but Sears will announce the closing Sears and Kmart locations on its website.
Sears and Kmart aren’t the only retailers to have had trouble during the holiday season. PacSun, according to the Los Angeles Times, announced it would close up to 200 of its stores earlier this month after recording a $17.6 million loss in the previous fiscal quarter.