N.J. Sears and K-Mart store closings, locations undisclosed | Economy | NewJerseyNewsroom.com -- Your State. Your News.

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N.J. Sears and K-Mart store closings, locations undisclosed

kmartlogo122711_optBY BOB HOLT
NEWJERSEYNEWSROOM.COM

Sears and K-Mart were hoping for some holiday cheer during the fourth quarter shopping period, but it was not to be. Sears has announced that 100 to 120 of its Sears and K-Mart stores will be closing.

According to an Associated Press report on CBS Philly, Kmart suffered a 6 percent drop in revenue during the fiscal fourth quarter from stores that had been open at least a year. The losses were blamed on a lack of layaways and a decline in sales of clothing and electronics. Sears’ sales fell by 4.4 percent, blaming poor consumer electronics and home appliance sales.

Sears indicated a change in philosophy toward putting their efforts in stores that generate revenue. The company said in a statement, according to WSJ.com, "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.”

Sears Holdings Corp., which has over 4,000 stores in the U.S. and Canada, said that its adjusted earnings were lower due to the declining sales and higher expenses. Its consolidated adjusted earnings for the fourth quarter are expected to be less than half the $933 million of fourth quarter 2010. The company felt losses in the third quarter because of struggling sales in its stores in Canada, lower electronics sales and poor clothing and pharmaceutical sales at Kmart.

The International Business Times reports that the company has not yet decided which stores will be closed. Sears will post final closings at www.searsmedia.com when plans are finalized.

 

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