Sears Holdings has been facing financial strain for some time now. Those difficulties are coming to a head as multiple Kmart’s are set to be closed.
For years, Sears Holding has been struggling. They have had overall net losses in the majority of the last 20 quarters (17 of 20), and since 2008, their annual sales have been declining.
A Kmart spokesperson announced on Wednesday that as of March/April there will be four stores in California closing. One of those stores includes the location on Katella Avenue West in Anaheim, which will start seeing liquidation sales today.
Howard Riefs is a Sears Holdings Corporation spokesman. Reif confirmed that in April, Kmarts in Chula Vista, Citrus Heights and San Mateo will be closing and close to 407 workers will be affected. He said:
“Store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model.”
Certain employees who fit the requirements will be given severance packages. Others will be given the opportunity to apply at other Sears or Kmart stores for further employment within the company.
Kmart closures can also be expected in Hawaii, Wisconsin, Minnesota and Michigan.
It’s not only Sears Holding that’s experiencing difficulties in the retail world. Last week Macy’s announced that they are cutting almost five thousand jobs (4,800). They will also be closing down forty locations.
The warmer than average weather has held back customers who would normally be shopping for winter gear and has lead to below par holiday sales. Consumers just aren’t buying and retail outlets are feeling the heat.