Sears (NASDAQ:SHLD) announced it would close a number of Kmart stores across the United States as part of an annual review. The closures are part of the struggling retailer's effort to cost costs.
The number of stores being closed was not revealed but Howard Riefs, a company spokesman, said the number was a very small percentage of the overall stores. "Every year we evaluate our store portfolio and make changes based on leases or stores with poor performance," Riefs told Reuters.
At the end of October, Sears owned 735 flagship brand stores and 952 Kmart stores.
In December, Sears announced that sales dropped 20 percent for the recent quarter, even as the company showed improved profitability. Much of the loss was attributed to store closings, including the divesture of its Sears Canada unit.
Sears was not the only department store to struggle this past quarter. Macy's (NYSE:M) recently announced that it would shutter 40 stores due to disappointing 2015 sales.
-See this Reuters article
Sears' sales plunge 20%
Kmart rewards night owls, adds Black Wednesday and Freebie Saturday
Kmart introduces pharmacy rewards program
Kmart rebranding Ohio store with K-Fresh concept
Kmart brings back the Blue Light Special