Sears To Close 24 Stores

[Alpha8472]

Sears is going to close 24 stores: 12 Kmarts, one Super K, seven Sears Grand/Essentials and four traditional Sears stores.
http://www.searsmedia.com/tools/closing_02262009.pdf
http://www.chicagotribune.com/business/ ... 1996.story

The closures are no surprise. However, I believe that the Kmart closings could have been avoided. Kmart could be a fairly good competitor to Walmart, if they would just lower the prices. However, they don't seem to get it. Kmart prices are always way too high. They need to match Walmart's prices and advertise that. In the current economic situation, I would think that Kmart could be thriving if there were bargains at their stores.

It is obvious that Sears has lost its way.

The only way I see the company gaining more business is by lowering their prices. Perhaps they need to revamp their Kmart chain by giving their Kmart stores a new name. They could remodel the stores into a brand new stylish look sort of like Target stores. Then they could price their products to be just as cheap at Walmart. If this company wants to survive, they need to take action. Sears is doing absolutely nothing new and wondering why they are losing business.

[storewanderer]

This company is such a mess it is pathetic. Kmart isn't doing that poorly; their same store sales declined far less than Sears and even a bit less than Target in the recent quarter. I really think with more focus, they could get Kmart performing pretty well. As it stands, Kmart just shrinks and shrinks, and the in-store execution is just getting worse and worse. It is too bad.

[Brian Lutz]

For the most part, the Kmart stores around here (the few left after the 2001 closures anyway) are in terrible shape, with bad looking worn out floors, outdated decor, poor organization, and bad lighting. The ones that closed down in 2001 were generally in even worse shape. Even the Wal-mart stores are generally in better shape.

As for Sears itself, I can't see them lasting too much longer either, especially if this recession lasts as long as I think it will. Their stores are generally in decent shape, but the ones here are also frequently empty, and the merchandise is generally overpriced.

[storewanderer]

Kmart is just a disaster. I've said it before and I'll say it again. I was in a Kmart last weekend that was "remodeled" a few months ago. They repainted some walls, put up new orange and black department signs, and installed security cameras throughout. The store was still a total disaster inside; clothing on the floors, clothing thrown all over displays, boxes unattended in various aisles, no staffing in electronics, no staffing anywhere on the sales floor (but there was a group of 4 at the service desk socializing the entire time, and they did have two cashiers so the checkout lines were short). Kmart's pricing also isn't very good. With every store closure, they become less and less of a "factor" in their markets, making advertising and other economies of scale spread across fewer stores making it harder and harder to reach out to new potential customers. I see this as a chain on the decline. I don't think they've opened one new store since the bankruptcy, though there is a store that was destroyed by a natural disaster that they are rebuilding with insurance money, so technically that will be the first new Kmart in quite some time.

As far as Sears goes, when I go there, it becomes obvious to me they are trying to hold inventory levels down. I have this feeling that they have a lot of "stale" merchandise there, that probably should have been marked down drastically a couple months ago but is still selling at either a small markdown or at full price. The store isn't stocked too well, either. The Sears in my area is in great shape; the store is about 15 years old but doesn't show the age. The store has always been clean and neat. They typically have employees around, and the employees seem to try to be friendly even if they aren't very knowledgeable. I see little use for this store, honestly.

[marshd1000]

I wonder if Kroger would ever take an interest in Kmart/Sears? I know that they tend to do their Marketplace stores with their regional banners. But they do have attractive stores that seem to be well run, especially Fred Meyer. But Sears and Kmart have good brands. So I am wondering if Kroger would consider buying Sears Holdings for some of the real estate and the brands like Kenmore and Craftsman? If they did keep the Kmart name, it could stand for Kroger Mart!

[Alpha8472]

I can see that this chain is run by people who have no clue what they are doing. For this company to survive, entirely new leadership is needed. They need to get rid of the people at the top and bring in new people who will turn things around.

[luckysaver]

Why would some of you think Kroger would be interested in Sears Holdings or acquiring the remnants of failing retailers? Kroger operates rival Fred Meyer Marketplace, which I think is closer (or similar) to Target and Walmart rather than Sears/Kmart. If Kroger was interested, they could buy the Super K business (since Super K has a complete grocery area) or the closing sites (per the announcements made by Sears Holdings) and turn them into Marketplace stores. If Kroger was to acquire the company itself, they would probably lose a lot of money and end up going broke over this. At this point in the nation's economic crisis, I don't think it is wise for Kroger or any other grocer to invest in a failing retailer that is not in the primary retailing interest of the grocer.

luckysaver

[storewanderer]

Maybe they would have an interest in some of the individual assets of Sears (such as certain brand names along with some of the real estate), but I doubt they'd want the entire company. Too many layers, too much misguided strategy, etc. The management of that Sears/Kmart chain needs to be gutted; they are clueless. The stores (notably Kmarts) need to be gutted; they are falling apart. The merchandising is lacking in both chains, so this is another problem that needs to be gutted. You get where I am going here.

Good buildings, some good (reputation) brands, but horrible execution.

[alexh1013]

what stores are closing?

[romleys]

So I was in the Los Banos Kmart about one week ago. I asked an employee at the customer service desk where books and magazines were located. "I dont know" she replied "maybe near stationary"..??
Pathetic!