It was recently announced that about 63 more Sears and Kmart stores will be closing across the country. The company has closed nearly 400 Sears and Kmart stores within the past year, and there are probably more coming.
As people have turned to online shopping, big chain stores like Sears and Kmart have been struggling.
The chain’s parent company, Sears Holdings, stated that the locations preparing for an eventual close are part of the ‘low performers’ range. Originally it was announced that 72 stores would be closing. Finally, after further evaluation that number was lowered.
It was announced that 40 stores in 24 states could be closing. This soon changed to 166 stores. Considering how spontaneous the evaluation results are, 266 stores could potentially be closed for good by the end of 2018.
The reason so many stores are closing is because the overall revenue dropped 31% in the last few months. It decreased 12% more from the stores that stayed open after closing the first batch of locations.
As a result of the store closings, eligible employees of these chains will receive severance. They will also be given the opportunity to apply to other Sears and Kmart locations.
There is no one state or part of the country that is exempt from this closing. It starts in California and stretches all the way down to Hawaii. The mass closing affects stores all the way to the East Coast as well, including New York and in the midwest territory. It’s no surprise to the public that more stores like these are rapidly going out of business due to rising sales from online shopping platforms like Amazon and eBay.