SEVERE WX : Special Weather Statement View Alerts

Sears to close another 72 stores as sales plunge

FILE - This May 11, 2017 file photo shows a Sears store in Hialeah, Fla. Sears is closing another 72 stores after reporting a first-quarter losses and plunging sales. The struggling retailer said Thursday, May 31, 2018 that it has identified about 100 stores that are no longer turning profits, and 72 of those locations will be shuttered soon. (AP Photo/Alan Diaz, File)

After this round of closures, the company will have about 800 stores, down from about 1,000 at the end of last year and far below the 2012 peak of 4,000 stores.

Posted: May 31, 2018 2:52 PM

NEW YORK (AP) — Sears will close another 72 stores as sales shrink and losses grow, an announcement that has become a familiar refrain as the company retrenches.

The beleaguered retailer, which operates Kmart and Sears stores, said it has identified about 100 stores that are no longer turning a profit, and the majority of those locations will be shuttered soon.

After this round of closures, the company will have about 800 stores, down from about 1,000 at the end of last year and far below the 2012 peak of 4,000 stores.

Sears also posted a quarterly loss of $424 million and said store closings already underway contributed to a drop of more than 30 percent in revenue. That marks the more than five years of straight quarterly sales drop, according to FactSet.

Sales at established stores, a key gauge of a retailer's health, tumbled nearly 12 percent, down 9.5 percent at Kmart stores and 13.4 percent at Sears.

Rob Riecker, Sears' chief financial officer, said in a pre-recorded call that the company's stores are "a critical component in our transformation."

But to meet customer needs and improve financial results, Sears must close poorly performing stores and "focus on our best stores, including our newer smaller-store formats," he said, according to a transcript of the call.

The latest closings underscore the deep-rooted problems at Sears, which was once a one-time powerhouse retailer that survived two world wars and the Great Depression but has been calving off pieces of itself as it burns through money.

"The demise of Sears has felt like a prolonged, drip, drip, drip as evidenced by the string of quarterly sales numbers," said Mark Hamrick, Bankrate.com senior economic analyst. "Essentially, it has been injury by a thousand cuts, whether by failing to staff stores to provide customers with good experiences or by failing to stock better quality merchandise in its stores."

Chairman and CEO Edward Lampert, who combined Sears and Kmart in 2005 after helping to bring the latter out of bankruptcy, has long pledged to save the famed retailer, which started in the 1880s as a mail-order catalog business.

But the stores have remained an albatross. And Kenmore, the retailer's renowned appliance brand, became the latest potential sale after ESL Investments, the company's largest shareholder, headed by Lampert, said it might be interested in buying it.

Sears also has made deals with Amazon. The company announced recently that shoppers could buy any brand of tires on Amazon.com, have them shipped to a Sears Auto Center and then bring in their car to get them installed. Amazon began selling Sears's Kenmore brand of ovens, washers and other appliances last year.

For the period that ended May 5, Sears lost $3.93 per share. It earned $245 million, or $2.29 per share, a year earlier, a quarter that included a $492 million gain tied to the sale of the Craftsman brand.

The weak financial results stand out amid higher consumer confidence and a solid economy. Other chains like Walmart, Best Buy and even other department stores like Macy's have posted rosier results.

Shares of Sears Holdings Corp., based in Hoffman Estates, Illinois, fell 11 percent, or 36 cents, to $2.86 on Thursday.

_____

Follow Anne D'Innocenzio: http://twitter.com/ADInnocenzio

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 554536

Reported Deaths: 7083
CountyCasesDeaths
Hennepin1155051679
Ramsey47786853
Dakota42410422
Anoka38477415
Washington24913273
Stearns20994218
St. Louis16774297
Scott15946117
Wright14764127
Olmsted1273297
Sherburne1060080
Carver980145
Clay781289
Rice7632101
Blue Earth695840
Kandiyohi627380
Crow Wing615086
Chisago548250
Otter Tail542673
Benton530597
Mower450532
Goodhue442471
Douglas441870
Winona438149
Nobles400248
Morrison394659
McLeod394355
Isanti375159
Beltrami372257
Itasca370752
Polk365367
Steele361914
Becker353948
Lyon347848
Carlton329352
Freeborn326829
Pine311821
Nicollet306542
Brown294439
Mille Lacs281250
Le Sueur269722
Todd268730
Cass249626
Meeker235937
Waseca231221
Martin212529
Wabasha19953
Roseau197318
Renville172043
Hubbard171841
Dodge17123
Redwood166435
Houston162614
Cottonwood156821
Fillmore15169
Pennington150619
Chippewa145836
Wadena144021
Faribault143419
Sibley135710
Kanabec130621
Aitkin128636
Watonwan12549
Rock122719
Jackson117310
Yellow Medicine110419
Pipestone109725
Murray10229
Pope10226
Swift99518
Marshall85617
Stevens82010
Lake78419
Clearwater77414
Koochiching76913
Wilkin76812
Lac qui Parle73522
Big Stone5644
Lincoln5592
Grant5478
Norman5229
Mahnomen5048
Unassigned49578
Kittson46622
Red Lake3877
Traverse3595
Lake of the Woods3053
Cook1450

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 357796

Reported Deaths: 5821
CountyCasesDeaths
Polk55970604
Linn20297330
Scott19082234
Black Hawk15550306
Woodbury14897221
Johnson1404281
Dubuque13153202
Dallas1089196
Pottawattamie10747162
Story1031147
Warren555186
Clinton537390
Cerro Gordo521986
Webster508291
Sioux506073
Marshall477174
Muscatine459896
Des Moines441465
Wapello4253120
Buena Vista421740
Jasper407670
Plymouth397079
Lee368155
Marion354575
Jones293055
Henry286137
Bremer279260
Carroll279151
Crawford262040
Boone258533
Benton250355
Washington249550
Dickinson242043
Mahaska224850
Jackson217942
Kossuth212663
Clay211025
Tama206671
Delaware202839
Winneshiek194433
Page190321
Buchanan188831
Cedar183823
Fayette182941
Wright180435
Hardin179942
Hamilton178049
Harrison176373
Clayton167055
Butler162534
Mills158620
Cherokee157138
Floyd155342
Lyon154741
Madison153919
Poweshiek152733
Allamakee149051
Iowa145524
Hancock143534
Winnebago136031
Grundy135232
Cass134354
Calhoun133211
Jefferson130635
Emmet128840
Shelby128337
Sac127219
Louisa126849
Appanoose126747
Mitchell125241
Union124032
Chickasaw122615
Humboldt118326
Guthrie117929
Franklin112721
Palo Alto110922
Howard102822
Montgomery100637
Unassigned10030
Clarke98223
Keokuk94530
Monroe94128
Ida89633
Adair84532
Pocahontas83621
Monona81230
Davis79924
Greene76710
Osceola75516
Lucas74923
Worth7078
Taylor65212
Fremont6139
Decatur5899
Van Buren55518
Ringgold53623
Wayne52123
Audubon4949
Adams3284
Rochester/St. Mary'S
Clear
49° wxIcon
Hi: 61° Lo: 32°
Feels Like: 49°
Mason City
Clear
49° wxIcon
Hi: 64° Lo: 34°
Feels Like: 47°
Albert Lea
Partly Cloudy
48° wxIcon
Hi: 63° Lo: 34°
Feels Like: 46°
Austin
Partly Cloudy
52° wxIcon
Hi: 62° Lo: 32°
Feels Like: 52°
Charles City
Partly Cloudy
52° wxIcon
Hi: 63° Lo: 36°
Feels Like: 52°
Pleasant conditions for the weekend
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Sara's Saturday Night Forecast

Image

April Tool's Day

Image

Byron baseball starts season strong

Image

Hayfield BB PKG

Image

Minnesota DNR offering virtual firearm safety classes for youth

Image

Aaron's Saturday Forecast (4/17/21)

Image

North Broadway Avenue project begins Monday

Image

Aaron's Evening Forecast (4/16/21)

Image

Mom hosting Prom

Image

Vaccines for manufacturing

Community Events