Sears Holdings is about to shut down more of its stores after closing up to 150 Sears and Kmart stores last quarter. The retail store lately decided to close another 72 locations by September.
Such closure of stores is a sign of Sears Holdings’ death spiral which can be a good news for their competitor J.C. Penney.
The downsizing’ beginning
In 2012, Sears Holdings managed 1,305 Kmart stores and 867 full-line Sears stores in the US. Aside from stores in Canada and “specialty stores,” Sears then owned 4,000 stores.
Since 2012, Sears concentrated on its full-line Sears and Kmart stores.
In January, 735 Kmart stores were only left and 670 full-line Sears stores were still open.
2017, however, is the highest year with closers for Sears Holdings.
Early in 2017, the company shut down 150 stores for cost reduction reasons, 108 of them are Kmarts and 42 are full-line Sears stores. However, Sears Holdings are witnessing an extreme decline in sales this year.
Consequently, the company decided to close 30 more stores by July.
And now, the company planned to eliminate 16 full-line Sears locations and 49 Kmart stores by September.
These closures will leave Sears Holdings with around 1,200 stores, a 20% decrease since the beginning of 2017.
Good news for Competitors
Despite the downsizing of Sears Holdings, the company had more than $22 billion as a revenue last year. The company’s sales are $3.8 billion in 2016, making it in the third place after Lowe’s and The Home Depot.
The biggest rival to Sears Holdings is J.C. Penney which will be happy when Sears Holdings go down. J.C. Penney will take a large part of the sales Sears loses as it closes stores.