As Sears Holdings Corp., the parent of Sears and Kmart, follows CEO Eddie Lampert on a path to try and survive, remember that the brick-and-mortar once had better days. Video provided by TheStreet
Sears Holdings said Thursday that it would close another 28 Kmart locations as it continues its cost-cutting campaign, once again making it the poster child for the precipitous decline of the American department store.
The company also posted declining sales and profits, but the results were better than analysts expected and led to a brief surge in its stock price before closing unchanged for the day, down 0.2%.
The Kmart closures add to a list of 330 Sears or Kmart locations shuttered or set to be closed later this year as the retailer seeks stability.
The latest batch closing stores, as disclosed on a list that Sears Holdings released later, stretch from Allentown, Pa. to Bellflower, Calif.
The company, which will still have more than 1,200 stores after the closures, said in a public filing earlier this year that it believes it has at least another 12 months of cash to continue operating.
Sears is betting on a customer loyalty program called Shop Your Way to help lead a turnaround. In addition to new ways for members to earn points, Sears will analyze the members’ past purchases and preferences in order to tailor its suggestions. The company also won investors’ favor with a deal announced in July to sell its Kenmore appliance brand on Amazon.
After rising then dipping, Sears shares closed at $8.55, down 2 cents.
“We will continue to right-size our store footprint to ensure we are positioned to meet the realities of the changing retail environment,” Rob Riecker, Sears Holdings’ chief financial officer, said in a call with investors.