Real Estate and Retail

Big-box retailer closing location

January 8, 2018
TAGS Kmart / Sears
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Kmart departments interior
Kmart, a subsidiary of Sears Holdings Corporation, opened its first store in 1962 in Garden City, Michigan. Photo via wikimedia.org

A big-box retailer is closing dozens more stores, including a West Michigan location, as it continues to face declining sales nationwide.

Hoffman Estates, Illinois-based Sears Holdings Corporation said last week it informed employees at 64 Kmarts and 39 Sears locations nationwide it will close the stores between early March and early April.

The Kmart store at 205 S. Greenville W. Dr. in Greenville is the sole West Michigan closure.

A Kmart in Richmond, a suburb of Detroit, will also close.

Liquidation sales at the affected locations will begin as early as Jan. 12.

Sears Holdings (Nasdaq: SHLD) said it “will continue to right size our store footprint in number and size. In the process, as previously announced, we will continue to close some unprofitable stores, as we transform our business model, so that our physical store footprint and our digital capabilities match the needs and preferences of our members.”

The company said eligible associates impacted by the store closures will receive severances and have the opportunity to apply for open positions at area Kmart or Sears stores.

Sears Holdings generated total revenues of about $3.7 billion during the third quarter of 2017, compared with revenues of $5 billion in the prior year quarter, with store closures contributing to more than half of the decline.

Total comparable store sales declined 15.3 percent during the quarter. Kmart comparable store sales decreased 13 percent, while Sears comparable store sales dropped 17 percent.

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