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Southbury Plaza - Kmart is closing
Sears Holding Corp. the holding company that owns Kmart and Sears has been going through changes recently. The most obvious ones being the closings of hundreds of Kmarts nationwide. In early 2017 it was announced that around 180 Kmarts were going to close. Later in the year, 28 were added to the list of closing stores.
In Connecticut the latest store to be closed is the Southbury store, located in the Southbury plaza on Main St. N. The closing of this store leaves 3 stores left in CT that remain open: Milford, Watertown, and Vernon. Kmart had around 880 stores open last year; that number has now dropped down to around 600. By next year, that number is expected to drop another hundred.
This behavior by Sears Holding Corp. has been happening for several years now. The reasoning behind these cuts can be attributed to the rising online market. This force has been negatively impacting a lot of other brick-and-mortar heavy establishments. One such example is J. C. Penney, who has also had to close a large percentage of stores. This shift in consumer focus has caused the Sears Holding Corp, to report another quarterly operating loss. How will they manage to hold their ground in the face of these new pressures?
This downward cycle has been happening for years now. Sears used to have around 3500 stores in 2010, now that number is around 1050: a 70% decrease in stores. While Sears’s executives are claiming that they can turn this situation around, it doesn’t change the fact that the millions they are saving is nowhere near enough to offset the 4 billion of debt they are in. Not only are they doing badly in revenues, stakeholders are starting to lose faith in them, as their stocks continue to plummet.
At this point bankruptcy is not a question of “if”, but rather a matter of when. In order to help offset some of its expected losses in 2018, Sears has gone ahead and freed some of its real estate in order to make it available for sale. While this will help a good amount, it still doesn’t take care of their continually decreasing revenue.
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