Retail giants brace for close outs
January 19, 2012 by Sarah
In a recent media release, both Kmart and Sears issued a list of 79 outlets that are expected to shut their doors in 2012, resulting in a loss of jobs in the Baraboo area.
The Kmart store in Rice Lake, WI and Baraboo’s Sears Grand store are just two stores on the list that face closure later this calendar year.
The listing of potential retail stores slated to close was issued after the parent company announced their anticipated earnings for the quarter. Sales have slumped approximately 2.5 per cent between Sears and Kmart for a total loss averaging 5.2 per cent combined for the three-month period.
The Sears Holdings release reflected falling sales in consumer electronics, clothing and a profound decrease in customers who use the layaway option to finance their purchases. It was a similar story for Sears’ plummeting quarterly sales, driven also by the electronics sector as well as home appliances in the Wisconsin stores.
Spokespeople for the parent company have announced that across America, 100 to 120 stores will sell out inventory and shut their doors. It is expected that the liquidation of retail merchandise will realize $140 to $170 in cash sales with more revenue generated by the sale of the land that the stores sit on or by subleasing the buildings that house the Sears and Kmart stores.