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Sears closing 72 more stores; 2 in Tampa

01 June 2018
Sears closing 72 more stores; 2 in Tampa

The company initially announced plans Thursday to close 72 stores, but pulled back slightly and released a list of only 63 stores slated for closing - 48 Sears stores and 15 Kmart stores, spread across 29 states.

After this round of closures, the company will have about 800 stores, down from about 1,000 at the end of previous year and far below the 2012 peak of 4,000 stores.

The announcement of more closings follows its first quarter earnings report Thursday, in which the company reported a $424 million loss on revenue of $2.9 billion in the quarter ended May 5.

Shares are down more than three percent before the opening bell.

The 63 affected stores are among 100 nonprofitable Kmart and Sears stores, according to the Hoffman Estates, Illinois-based retailer. Sears is monitoring those additional locations, executives said, and "will make further adjustments as needed".

With the Sears at Tech Ridge closing in April, that leaves fewer than 10 remaining open in the Austin area.

The most recent quarter marks its 26th consecutive decline in sales. "By diminishing the quality of the in-store experience, Sears has basically trained consumers to avoid going inside".

On Thursday, executives said they were looking into selling the retailer's Kenmore brand of appliances, which has been one of the bright spots in the company's performance.

Sears has tried to sell those brands and businesses before.

This is the second anchor store that has recently announced its closure at the Empire Mall.

The company is looking to raise cash through a potential deal with ESL Investments, the hedge fund run by Sears' CEO, Eddie Lampert.

The weak financial results stand out amid higher consumer confidence and a solid economy.

The department store chain has been caught in a vicious cycle - shuttering weak stores to reduce costs.