The parent company of Sears and Kmart made a surprise announcement to close more than 100 stores following a terrible holiday shopping season that sparked rumors regarding whether the legendary retailer can stay away from a spiral of death. Sears Holdings Corp., a leader of American retailing which was established during 1880s declared to concentrate on its stores which earn money.
Sears stock price immediately dropped by as much as 27 percent. Sears Holdings faced cut throat competition from arch rivals Target Corp. and Wal-Mart.
A few shoppers complained that these days they have a difficult time getting in touch with the Sears and Kmart. They do not see any reason to go to Sears because prices are not competitive. They feel comfortable to go to Wal-Mart and Target in order to buy the same item at the same price.
Sears announcement to close more than 100 stores is expected to create around $170 million in cash when the organization sells inventory. Selling or subleasing the properties might generate much more money. The company forecasted that the 4th quarter adjusted earnings will be greatly less compared to the same quarter last year.
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