Sears has experienced a decline since it merged with Kmart during 2005 and there is no end in sight.
The company stated that it may sell its majority stake in Sears Canada which is responsible for 20% of the global stores. In the last year, the company has inconspicuously closed about 100 U.S. stores. It is expected to reveal bad first quarter results shortly and may be closing additional stores.
Analyst John Kernan said that the group has too many stores and they are losing a lot of money. The expectation is that 500 U.S. stores will be closed over the next few years and eventually Sears will disappear.
Sears used to be the largest retailer and employer in the nation. It reshaped shopping methods in the U.S. with huge department stores and catalogues. However, the Kmart merger spelt disaster from the onset. Sales have dropped yearly since 2006 and it has been showing losses since 2011.
The sale of the Canadian stores will raise cash they desperately need. The company recently sold the Lands’ End unit. Analysts state that the company’s investment policy is their downfall.
20 MAY 2014, USA