Sears home furnishers to retire or shutter over 2 million outlets
Posted On August 5, 2021
Sears, which has been on a year-over-year decline, announced Tuesday that it will retire some 2 million home furnishing stores, including more than 2 million in the United States.
In its announcement, Sears said it expects to save about $5 billion annually by retiring the Sears Thrift store locations.
Sears, which will continue to sell furniture and other home goods and service at its headquarters in suburban Chicago, said it will also shutter stores in Mexico and South Korea and will also reduce its U.S. workforce by about 2,000 employees.
The company said it was retiring 1.3 million Sears Thrifts and Sears Home Centers, which make up about 15 percent of the company’s total sales.
The announcement comes as Sears is considering whether to close its stores and move its manufacturing operations to Mexico.
Sears said it is not expected to incur any significant costs, such as the closing of stores and the move of its operations to other countries.
It will also not charge higher rent for the remaining stores.
The announcement is part of a broader restructuring plan that also includes closing Sears’ discount stores, eliminating its Sears Home Center division and restructuring the company to reduce its total sales and costs.
“We are going to do everything in our power to reduce our costs and increase our profitability,” Sears Chief Executive Edward Lampert said in a statement.
Lampert also said Sears is making some changes to the company and its stores.
“This is a new, exciting era for Sears and the people who work at Sears.
The store will have a new identity and a new focus on providing our customers with the best products, service and convenience available,” he said.