tiptrot.com March 19, 2018

Sears Canada store closures expected to have little impact on RioCan

24 June 2017, 12:06 | Cynthia Sparks

Instead of advertising itself as Sears the pop-up shop displays the slogan #weveCHANGED to represent a revamped retailer

Instead of advertising itself as Sears the pop-up shop displays the slogan #weveCHANGED to represent a revamped retailer

Sears Holdings Corp. will terminate leases for 20 unprofitable stores with landlord Seritage Growth Properties, part of cost cutting measures as the struggling retailer tries to shore up its business.

The Sears logo is seen on the side of a store March 24, 2005 in San Bruno, California.

Those closings - including 18 Sears and two Kmart stores - follow 150 stores Hoffman Estates-based Sears shuttered in the first quarter of this year and another 66 expected to close by early September.

Stores are closing at alarming rate.

The 20 closings bring the company's total so far this year to 236, or roughly 17% of the stores it had in January.

Sears Canada Inc. said Thursday it plans to close 59 locations across Canada and cut approximately 2,900 jobs under a court-supervised restructuring.

Sears warned in March that there is "substantial doubt" about its ability to remain in business due to losses that have topped $10 billion since 2010, the last time it turned a profit.

But Sears, along with Macy's and J.C. Penney, are "future-proofing their offerings by closing stores", according to a new report from retail think tank Fung Global Retail & Technology. Though the company expects to continue operations and plans on using bankruptcy as a way to protect itself after more consistent loses in sales, shares have plummeted 22%.

The other six locations are Sears Home stores in Calgary, Toronto and four smaller Ontario cities (Kingston, Orillia, Sudbury, Windsor). However, Sears Holdings CEO Eddie Lampert and his ESL Investments hedge fund own an approximate 45% stake in the company.

"The brand reinvention work Sears Canada has begun requires a long-term effort", Sears Canada said in a statement Thursday.

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