Sears Holdings Is Shutting Stores

This isn’t big news…yet. Sears Holdings is closing 12 underperforming stores – eight of them Kmart units and four of them Sears location.

We know, this is an extremely small number in comparison to the 3,800 the company owns across the country. But how long will it take before we see mass closures?

Things are bad for retailers that have performed historically well over the last few years, but sales have been down at the Sears-Kmart chains for a while now. Way down. Plus, its stock closed yesterday at $53.42, down from its 52-week high of $139.40.

When Sears and Kmart merged a few years ago, many people were saying that it was a real estate deal. Well, the company has kept on operating without many big changes. Do you see any in the future?

20 Responses to “Sears Holdings Is Shutting Stores”

  1. 1 Spring Cleaning October 23, 2008 at 9:25 am

    the mass closures will begin after Christmas. Retailers will sell inventory and not restock. Next spring the mass carnage of the retail industry will begin to bloom.

  2. 2 Weed Removal October 23, 2008 at 11:29 am

    Hopefully right behind it will be the reversal of the arrogance culture with pervades our industry from the get-rich-quick yupp-ies to the (light) blue-bloods.

  3. 3 8-Alpha-Zulu October 23, 2008 at 2:10 pm

    Extremely well said Weed Removal.

    It saddens me that we have lost our once dignified and nearly regal industry to those arrogant sophmoric punks whose culture has, like an invading virus, reduced us all. I forbid my 4 children from joining the industry and will spend the rest of my days incubating other business focuses for them to gain and focus their attention in an alternative direction in order to prevent them from becoming involved in same.

  4. 4 Poor Lampert October 23, 2008 at 3:52 pm

    Did they announce what locations they are closing? If not, how can i find out?

  5. 5 little nat October 24, 2008 at 8:33 am

    Alpha is not far wrong. Greed continues to bloom all over this world. I remember when most people ran retail stores to help others,not themselves.

  6. 6 Weed Removal October 24, 2008 at 8:56 am

    This will be another faux-cycling into back-to-basics sales and alleged new focus customer service. Generally – a reminder for all to “dance-wth-the-one-ya-brung,-yer…” I hope.

    But there are many a tumbleweed growing to do their own dance first across the money-grabers’ parking lots. What is lost is the envronment spoiled – which has been compromised. Perhaps we should consider – as an industry – that these Now Obselete be removed like outdated/unusable in-ground gas station containers.

  7. 7 OvertheHillYuppies October 24, 2008 at 1:43 pm

    Send these ancient relics to Leisure World where they belong, we don’t need another round of their layoffs while they still stand through the end. It’s disgusting. They screw things up while we slave away, then blame us for their f%#ck&ps.

  8. 8 alr2903 October 25, 2008 at 8:00 pm

    Sears has been out of touch for over a decade and they owned the solutiion and sold it off. The Western Auto Stores. They should of kept the car care business, continued with appliance sales, and appliance service dept. A reduced catalogue of basic mens work attire, plus Lands End. Continue Kenmore and Craftsman. Had they Kept the small wester auto stores, and sold of those behemoth stores and ALL of K-mart they would of been in a great postion for the climate of the current economy. Most working people do not have time for malls, Men like in & out shopping with several tasks completed with 1 stop. Women might buy into the Kenmore line, but seldom do you hear a Lady mention I bought this dress at Sears.

  9. 9 Will October 27, 2008 at 11:12 am

    It’s sad to see another once proud and dominant US company destroy itself via bureaucracy and lack of innovation. Sears, GM, Ford, can’t stop the inertia created by years of bad decisions and falure to adapt. Like so many companies, their leadership is out of touch with the consumer.

    I went to the Home Depot on Sunday in a shopping center that had a Sears as it’s co-anchor. It was a former K-Mart that got a face lift. Just as before the merger, the parking lot was dead, on a Sunday during peak consumer traffic. After I was done at HD, I went to Wal-Mart, where I couldn’t even find a parking space. I give Sears 5 years, tops.

  10. 10 Lorita October 27, 2008 at 1:51 pm

    You all are talking around the issue. Yes, retail has been failing since 2005 and will continue it’s downward spiral. But the real impact is 1) investors who bought at amazingly low cap rates (especially those retail properties) and 2) the communities around which these shopping centers have been built which will now begin to look like blight on the landscape.

    I realize that commercial real estate has been about the sharks and feeding the big dogs, but the small investors who planned to live off the brilliance of their purchase of a great little shopping center at a 3% CAP rate are going to see vacancy.

    Then what? How do we keep our downtowns safe and our suburbs vital without the main draw of spending and consumerism. You Big Brains out there…we need you now!

  11. 11 Bigbaldman October 28, 2008 at 9:38 am

    Little Nat…when did most people run retail stores to help others? What time period was that again? Right after 1961 and right before 1962? That’s possibly the dumbest statement of the year. Lorita, as an answer to your concern where do we go from here, the answer is a return to reasonable rents and locally owned and patronized business. Just as home prices shot past historical rent/ sale price ratios, CRE has done the same. Rents where driven up by massive corporate tenants, squeezing out locally owned business and the middle class people who owned and ran those businesses. These corporate behemoths will suffer in the coming retail bloodbath. Only then will we return to some semblance of sustainability by shopping mainly where we live and buying mainly from our geographic peers.

  12. 12 Dealmaker October 29, 2008 at 10:16 am

    Sears and many other retailers failed to see, grasp, and acknowledge the changes that started well over a decade ago. Because many didn’t react as changes happened around them…they are just merely memories now. In most cases casualties of not changing to meet the changing needs of their changing customers. There is little hope that many of those stodgy ones remaining…can make the right moves to change in this economic environment. Time is against them. The retail world as we know it now…will have far fewer players in just a few months.

  13. 13 Carol Gilbert October 29, 2008 at 10:16 am

    Most of the time, when retailers and restaurants fail, it is because they “earn” failure. Retail and restaurants both reflect and lead the culture. When companies fail to do one or both, others step in to take their place. There are exceptions, of course, but the truth is it takes years for companies like Sears to go under. Most failed retailers forget that they are entrepeneurs and, over time, the fact that they either don’t do the job or don’t do it well, puts them under.

  14. 14 JQ_Public October 30, 2008 at 11:32 am

    It’s really unfortuniate that Sears has lost touch with the same people that put HER ontop. T.H.E. Customer!

  15. 15 Darren October 30, 2008 at 5:17 pm

    Has anyone heard whether any of the OSH (Orchard Supply Hardware) stores (part of Sears Holdings) are in danger of closing?

  16. 16 kmart lp November 11, 2008 at 8:00 pm

    What Michigan stores are going to close

  17. 17 Avery C. February 21, 2009 at 10:52 pm

    Sears is a sloppy and lazy store. So is Kmart. Both of these “retailers” could care less about the appearance of their stores, could care less about whether or not potential customers can actually find what they need. All they want is to sucker people in to signing up for their high-interest cards. Lot of good that will do when the stores finally close.

    • 18 anaon August 7, 2009 at 8:38 pm

      as a former Kmart employee, it is very hard and frustrating to see people say “they just don;t care” or when people say Kmart just gave up blah blah. It isn’t that they don;t care, its the fact that they don’t have millions of $$$ to spare for store upgrades like Walmart. The Kmart I worked at is still open, and they are one of the better performing stores in the region, even while being just down the street from Walmart. The manager there really does care and they all do the best with what they have to do it with. Sure it would be nice if Kmart could have all the fancy bells and whistles, but if the cash isn;t there to be spent on that stuff, there isn’t anytyhing each individual store can do about it.

  18. 19 bubbles September 13, 2009 at 6:06 pm

    good serves them right they screwed u over with a rerigerator and they are charging my mother for two refrigertators. she purchased onlyn one

  19. 20 jaded November 5, 2009 at 5:38 pm

    It is so sad to see the degradation of such a company..Where is the leadership—its lost in all the micro-management and butt kissery(trying to be diplomatic) Why put a leader in a position that has no clue on how to give directions or do the job because he has never performed the task before—-WHAT??? Yes–Kmart thats the ISSUE–people in the upper reaches of the company who do not have a clue,,, they just make up more programs that cause more workload and less customer service—–yeah,,, go ahead and take a picture of it,,, make sure that task is completed,,,,HOW ABSURD–DEDICATION–YOU dont give a SH** about that or hard work— EDDIE Lampert—enjoy another glass of wine on me–Look at history EDDIE–WE KNOW- JUST LET THEM EAT CAKE–HOW SAD–WOW—you should feel the fires burning already EDDIE,, GOD—or any god besides your money eddie,, save your soul,,, OLD MR K,,, is turning over in his grave im sure,,, SHAME ON ALL of YOU

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