Photo: KMart Sears Closings
Sears Holdings Corp plans to close as many as 120 Sears and Kmart outlets nationwide after sales continued to decline during the Christmas shopping period.
“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,” CEO Lou D’Ambrosio said in a statement.
Neither Sears nor Kmart benefited from the increased holiday spending reported by other U.S. retailers.
Besides shuttering between 100 and 120 stores, Sears Holdings said it will reduce inventories at its remaining outlets by around $300 million.
The cost-cutting measures will generate savings of $140 million to $170 million, the company said.
Sears Holdings said its adjusted fourth-quarter earnings before interest, debt and amortization will be less than half of the $933 million posted in the final three months of 2010.
A spokesperson for the retailer said Tuesday a full list of location closings will be posted as soon as possible on www.searsmedia.com.