According to a report in the Wall Street Journal, 100 more Sears and Kmart stores will close as their new parent, Transform Holdco, focuses on smaller-sized retail concepts.
The 100 are in addition to earlier store closings announced in August, when the company stated that it would close 26 full-line Sears and Kmart stores this fall. In announcing the closings, Transform Holdco, controlled by Edward Lampert’s ESL Investments, maintained that it faced challenges returning stores to sustainable levels of productivity as it contended with Sears Holdings, from which it acquired the stores, over the purchase agreement and as it endured a generally weak retail environment.
Transform Holdings asserted that the problems encountered had affected its performance and limited strategic choices. After consideration, the company added, executives determined that the right course for the company was to accelerate the expansion of smaller store formats which included opening additional Home & Life stores, a new concept that drops apparel and other departments in favor of tools, and appliances and other home-related products and services, and adding several hundred Sears Hometown stores after that banner’s acquisition.