US Sears to close more stores
The once largest U.S. department store Sears is expected to close further stores in the USA, also other retailers are resizing
The company operates 2000 stores throughout the U.S., but since 2005 it has closed more than 500 locations and is expected to close more, because of a late statement of CEO Eddie Lampert: “You don’t need 2000 stores to be competitive in America”.
According to a report in WSJ Wall Street Journal, Lampert was in the past more inclined to keep a marginal store open, but now, if a store is not turning into a healthy profit, his choice would be to not renew the lease. However, he did not say of just how many more stores will be closed.
Sears, including flagship Sears and Kmart chains is trying to reverse years of losses and declining sales, and a remedy seems to be the build-up of a loyalty programme and investing in online initiatives. However it has not been enough to offset weakness in Sears brick-and-mortar-stores, but exactly from these stem the majority of its sales.