Sears Had A Miserable, Miserable Christmas
Sears is scrambling to raise cash and cut costs after an absolutely miserable holiday season.
Sales at Sears and Kmart stores plunged during November and December. At stores open at least 12 months, sales fell between 16% and 17%. It only adds to worries that Sears can’t stay in business much longer.
Sears blamed pharmacy closures at some Kmart stores and fewer electronics offerings on store shelves. But excluding pharmacies and consumer electronics, sales were still down 14% to 15%.
The company’s bleak holiday season was an outlier. The retail sector had a very strong holiday shopping season overall. Traditional brick-and-mortar rivals, including Target, Kohl’s, Macy’s and JCPenney, reported better-than-expected sales.
Sears said it will cut another $200 million a year (beyond the stores it already planned to close). And it’s looking to increase the amount of money it is able to borrow.