Kmart, Sears locations in N.J. not on closing list | Economy | NewJerseyNewsroom.com -- Your State. Your News.

newjerseynewsroom.com

Monday
Apr 21st
  • Login
  • Create an account
    Registration
    *
    *
    *
    *
    *
    REGISTER_REQUIRED
  • Search
  • Local Business Deals

Kmart, Sears locations in N.J. not on closing list

kmartlogo122711_optBY JOHN SOLTES
NEWJERSEYNEWSROOM.COM

Sears Holding, the parent company of Sears and Kmart, announced Tuesday, Dec. 27 that approximately 100 to 120 of its locations will shutter in the new year. New Jersey, as of now, will not see any store closings. However, the future is unclear.

In the partial list that the corporation released, there were several stores in Florida, California, Mississippi, Alabama and Georgia, among other states. “A typical store that is being closed employs between 40 and 80 associates,” reads an official press release.

Although the Garden State was not included in the first wave of closings, New Jersey is still on the hook. Sears Holding has only announced 80 store locations from a list that could reach 120.

The announcement came on the heels of Sears Holding’s release of fourth quarter numbers. Kmart sales dropped by 1.8 percent in 2011. Similarly, Sears sales dropped by 3.3 percent. When comparing the final quarter of the year, the declines were 4.4 percent and 6 percent, respectively.

The reasoning for the Kmart decline was “decreases in consumer electronics and apparel categories and lower layaway sales,” according to an official announcement. At Sears, the drop was credited to consumer electronics and home appliance categories.

“Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model,” stated CEO Lou D’Ambrosio. “These actions will better enable us to focus our investments on serving our customers and members through integrated retail -- at the store, online and in the home.”

The store closings are expected to generate northward of $140 million in extra cash.

Whether or not New Jersey stores remain open will all depend on their performance.

“While our past practice has been to keep marginally performing stores open while we worked to improve their performance, we no longer believe that to be the appropriate action in this environment,” the press release adds.

Sears and Kmart stores are located throughout the state in several key markets, including New Brunswick, Woodbridge, Paramus, Watchung and Lawrenceville, among other locations.

John Soltes is an award-winning freelance journalist based in New Jersey. He currently serves as publisher of Hollywood Soapbox (www.HollywoodSoapbox.com). E-mail him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

Add your comment

Your name:
Subject:
Comment:

Follow/join us

Twitter: njnewsroom Linked In Group: 2483509