After Toys “R” Us paved the way in the coming “mall apocalypse,” Sears is following in close pursuit by closing down 72 unprofitable department stores for both the Sears and Kmart brands, according to the Des Moines Register.
“As part of our ongoing efforts to streamline the company’s operations and focus on our best stores, we have identified approximately 100 non-profitable stores, 72 of which will begin store closing sales in the near future,” the company stated in its first quarter earnings report released Thursday. “We continue to evaluate our network of stores, which are a critical component in our transformation, and will make further adjustments as needed and as warranted.”
The exact stores being closed will be announced later on Thursday.
“The ailing company reported first-quarter sales of $2.9 billion, compared with $4.2 billion in the same period a year earlier,” reports the outlet. “The company has sold off its popular Craftsman brand tool division and is looking to sell its Kenmore appliance brand this year.”
Sears has said it will collaborate with Amazon by potentially offering installation and service for tires bought off the online retail outlet.
The mall apocalypse, called the “retail apocalypse” in some places, has been surging at a faster rate on an annual basis since 2014.
According to Fast Company, large malls have seen an expanding vacancy rate by 8.3% in the first quarter of 2018, which is at its “highest since the fourth quarter of 2012.”
“Reis Inc, a real estate data firm that studies 77 metropolitan areas, says 41 of those areas experienced an increase in vacancy during the 12 months ending on March 31,” reports the outlet. “Part of this slump has to do with the fact that customers can easily buy products online, instead of dragging themselves to malls, many of which haven’t been updated in years.”