Franchise News
CNN Money: Sears and Kmart Store Closings and Losses Mount
These major chain stores continue to see declines in sales as they round out 2016.
As Kmart and Sears, both owned by Sears, are nearing the end of Q4, data shows that revenue continues to decrease. According to CNN Money, both stores are planning on ramping up store closings in the new year, though the company wouldn’t disclose how many stores will be closed.
While both chain stores had 4,000 locations open in 2011, they are now down to 1,500 stores between them. 2016, in particular, was a major year of closings, with 140 Kmart store closings and 30 Sears closings.
"We will continue to accelerate the closing of underperforming stores,” chief financial officer Jason Hollar told CNN. "We do not intend to borrow money to fund continued operating losses." Instead, the company is looking for ways to raise money and sell off real estate, while also looking for potential buys and/or partners for some of the company’s more established brands.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
