Thursday, May 31, 2018

Did Sears Selling To K--Mart Precipitate the CLOSING SEARS STORES

Sears Is Closing More Stores as Sales Shrink For 26th Quarter in a Row Struggling retailer’s revenue has declined as it closed hundreds of stores
Store closing sale at the Sears in the Dover Mall in Dover, Delaware in May 2018. The store will close in August 2018.
Sears Holdings Corp. SHLD -8.57% said Thursday that it plans to close another 72 stores it has deemed unprofitable, as the company continues to struggle with falling sales.
Sears has been closing hundreds of stores in recent years, selling brands and spinning off divisions to stay afloat as losses have mounted and as it struggles to keep its customers away from WalmartInc., Inc. AMZN +0.23% and other outlets.
The company said a list of the 72 stores would be posted later Thursday.
The new round of store closures comes as the retailer reported sales fell in the latest quarter, extending a streak of declines that stretches back more than six years at the once dominant retailer.
The last time Sears’s sales increased from the previous year was in the third quarter of 2011, when the company had $9.4 billion in revenue, according to data from Thomson Reuters .
In the latest quarter, total merchandise sales fell 34% to $2.2 billion. Total revenue, which includes money generated from appliance and product-repair services, fell 31% to $2.89 billion.
Decline and Fall Sears sales have fallen for more than six years straight. Year-over-year change in quarterly sales Source: Thomson Reuters Eikon %2012’14’16’18-40-30-20-10010
Same-store sales at Sears locations fell 13.4%, while they declined 9.5% at Kmart locations. The company operated 894 total locations as of May 5, down from 1,275 as of around the same time the year prior.
Sears reported a first-quarter net loss of $424 million, or $3.93 a share, compared with a profit of $245 million, or $2.29 a share, a year earlier. The prior-year quarter’s results got a $741 million lift from asset sales. In the latest period, Sears recorded a $165 million benefit.
Sears is currently weighing whether to divest its Kenmore appliance brand and other units. The moves follow prodding by Sears Chief Executive Edward Lampert, who has proposed that his hedge fund purchase the assets if the company is unable to find other buyers.
Mr. Lampert, who is also Sears’s biggest investor and among its biggest lenders, said in an April letter to the Sears board that his ESL Investments Inc., which owns a controlling stake in the retailer, is willing to submit offers for Kenmore, the Sears Home Improvement and Parts Direct businesses as well as some real estate, including $1.2 billion in debt secured by the properties. History of Sears: HERE
Kmart Corporation (simply known as Kmart and stylized as kmart) is an American big box department store chain headquartered in Hoffman Estates, Illinois, United States. The company was incorporated in 1916 as S. S. Kresge Corporation and renamed to Kmart Corporation in 1977.[3] The first store with the Kmart name opened in 1962.[4] At its peak in 2000, Kmart operated 2,171 stores including 105 Super Kmart Center locations.[5] The chain’s management purchased Sears for $11 billion in 2004, forming a new corporation under the name Sears Holdings Corporation; Kmart was transferred to the new Sears Holdings Corporation.[6] For the 2005 fiscal year under the new company, the Kmart store count was at 1,416 with only 55 Super Kmart Center locations.[7] By the third quarter of 2017, the Kmart store chain had 510 store locations (which now decreased to 432 after several rounds of store closures announced proceeding Q3 of 2017). The last Super Kmart Center in Warren, Ohio closed on April 8, 2018. Kmart currently operates stores in 46 states, Puerto Rico, the Virgin Islands, and Guam[8] (which houses the world's largest Kmart).[9] Kmart formerly operated stores in Canada, Mexico, Singapore, and in Eastern Europe.