SHLD announced year-to-date results as of 12/25/2011 with Kmart same store sales down 1.8%, continuing the familiar news of declining sales, revenue, profit, etc.
From the press release:
"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. "
What does that mean? Basically, over 100 stores will be closed in 2012... as in they know a bunch of stores are "marginal" and haven't done diddly-squat to improve them, and are now going to pay the price. Here's more from the PR:
"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model. 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," said Chief Executive Officer Lou D'Ambrosio. Specific actions which we plan to take include:
- Close 100 to 120 Kmart and Sears Full-line stores. We expect these store closures to generate $140 to $170 million of cash as the net inventory in these stores is sold and we expect to generate additional cash proceeds from the sale or sublease of the related real estate. Further, we intend to optimize the space allocation based on category performance in certain stores. Final determination of the stores to be closed has not yet been made.
Basically, this means they have no clear plan for recovery other than continuing to close stores, which is not a good plan at all. "Integrated retail" isn't going to work - MyGofer was a flop (even Wal-Mart now has site-to-store online shopping), Sears.com marketplace isn't going to beat Amazon on price, Walmart has layaway nowadays... why would most people still shop at a 40-year-old Kmart whose last remodel was in the 1980's other than to beat the crowds at large Walmart supercenter? Yes, Kmart still has profitable urban/city center locations, but even Walmart is adapting with smaller footprint urban stores and continued invasion of major cities like Chicago, NY, Philly, DC, San Francisco, and Boston.
from
http://www.searsholdings.com/pubrel/pressOne.jsp?id=s16310_item98114
UPDATE: A partial list of store closings can be found here.
http://searsholdings.com/about/122711_close.pdf
UPDATE 2: As noted per some astute readers in the comments, some of the closing stores were profiled previously on this blog, for example:
http://superkmart.blogspot.com/2010/09/hendersonville-tn-big-kmart.html
keep your your employees,, Hanging on a thread! just like before! we do not know what stores till the day before! lol! 20 year employee & never more than a 15 cent raise per year if youre lucky!corprate Greed! oh by the way? never a christmas party either, the people that where dependable, and trustworthy, just get kicked, to the curb, looking for a job.
ReplyDeleteThe list is finally in:http://searsmedia.com/tools/122711_close.pdf Unfortunately, the Henderson store you covered is closing, as well as the first Super Kmart store in Medina.
ReplyDeleteThe list is only a partial of the stores to close. There is still approximately 40 more. Unfortunately I look for the Fremont store to close as on any given day you are lucky to see 10-20how cars in the lot.
ReplyDeleteThat is a side effect of removing groceries.
ReplyDeleteWhere can I actually READ the list? All I get is "download unsuccesful" cant be done on phones,etc
ReplyDeletewhen I try the searsmedia url.
anyone know? Thanks in advance
Sad I am in Illinois and I know there has to be a handful of marginally performing stores in my state. I wouldn't be surprised if they closed either the Sears or Kmart in Peru Illinois. Also the Kmart in streator Illinois has only a layaway. No pharmacy no cafe no photo nothing. Its one of the smaller Kmart stores I see it closing since Walmart opened a few months ago.
ReplyDeleteStores will start liquidation sells in February-March. With all final closings in April.
ReplyDeleteWhich are the other Kmarts that are slated to close that were mentioned on your blog?
ReplyDeleteSuper K in Portage, IN will be converted to a Meijer....another fine Michigan retailer.....that's better than a Target or Big R or the building sitting empty.
ReplyDeleteSears Holdings Corporation
ReplyDelete3333 Beverly Road
Hoffman Estates, IL 60179
Attention:
Edward S Lampert,
Chairman Of The Board
Lou D'Ambrosio,
Chief Executive Officer
Ron Boire,
Executive Vice President, Chief Merchandising Officer,
President Sears & Kmart
Save Sears and Kmart! We have the plan.
We have developed a totally unique, creative, imaginative, visionary Advertising, Marketing, Merchandising program that will drive millions of customers back to Sears and Kmart stores.
At one time, one of every two houses in America had a Kenmore appliance. Now it is far less.
Customer service at Sears and Kmart is totally non existent. On December 10, 2011, I went into Sears in Waterford Michigan. Six associates walked by me. Not one of the employees smiled, greeted me or asked if I needed help. At the check out counter, several people waited and there was no one to ring them up.
To quote Tom Cruise in the 1988 Academy Award winning movie: Rainman. "Kmart Sucks". That is the general consensus of American shoppers that vote with their dollars and when they shop.
Recently, Kmart began marketing kitchen products under the Chef Gordon Ramsay name. Sears began exclusive marketing of Kardashian Kollection clothing and accessories. These marketing programs are the best new promotions either company has begun in well over 20 years. This past spring and summer, Sears advertised they beat Home Depot and Lowes for lawn equipment. This was also a great marketing program. However, sales and profits continue to slide at Kmart and Sears.
We have sent certified letters to Edward S Lampert, Chairman Of The Board, Sears Holdings Corporation and also to Lou D'Ambrosio, Chief Executive Officer. In addition, we sent first class letters to many top executives of Sears Holdings Corporation.
Advanced Creative 2012 Advertising Marketing Merchandising programs will get customers into the stores and spending millions of dollars.
Remember Montgomery Wards, Hudson's, Marshall Fields, Korvettes and many other defunt department stores?
We can save Sears and Kmart! Mr Lampert, Mr D'Ambrosio and Mr Boire, call us, we want to help. Tens of thousands of employees jobs are at stake.
These Advertising, Marketing, Merchandising programs we have been working on will guarantee a significant increase in sales and profits, while reducing shrink.
Every person going to a Sears or Kmart will be greeted by an employee and offered assistance, and rung up quickly.
All investors and stockholders of Sears Holdings Corporation, contact the company and tell them to implement our Advanced Creative Advertising, Marketing and Merchandising programs now. By summer 2012 sales will increase substantially. This will be one of the biggest corporate turnarounds in American history.
Investors and stockholders will lose their investment if Sears and Kmart close or file bankruptcy.
Save Sears and Kmart! We can do it!
Michael Spector
Advanced Creative
Oakland County Business Association, Inc Michigan
Box 222 Walled Lake, MI 48390
(248) 396-0396
OaklandCountyBusinessAssociation@yahoo.com
i like this blog
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Maybe if those in charge weren't blowing money on the Kardashian line, those of us who work would actually get the pay raises we've been denied for years now. But I doubt it...
ReplyDelete