Monday, September 17, 2018

Sears Downsizing is Scary

Forbes
Sears Holding’s recent report of second quarter 2018 sales was scary. The closing of 382 stores since last year’s second quarter, and the proposed closing of 46 more stores, is a stark reminder that the management is winding down the operation. There are now 360 Kmart stores and 506 Sears Roebuck stores in operation. In contrast, in 2005, there were about 1600 Kmart stores and 2300 Sears brand stores in operation.

The company reported a net loss of $508 Million for the second quarter compared to a loss of $250 Million in the previous year. Total revenues plummeted 25.6% from $4.3 Billion to $3.2 Billion largely due to store closings. But, even comparable sales dropped 3.9% in the quarter, although July and August comps showed an improvement of 3.0% and 2.5%, respectively.. . . more