In light of a poor holiday season, Sears announced Tuesday it is accelerating the closure of unprofitable stores and considering cutting additional staff as it tries to recuperate.
In its earnings report, Sears Holdings, which also owns Kmart, said comparable-store sales in the fourth quarter dropped by 6.9 percent at Sears and by 7.2 percent at Kmart, despite entering the holiday "with key product offerings and promotions intended to build engagement with our members and provide them with the best experience possible," according to the Sun Sentinel.
Though fourth-quarter sales were better when compared with the previous three quarters, overall same-store at Sears fell by 9.2 percent in 2015.
Sears had already announced plans to shutter 50 stores within the next few months, just like what it is doing with Kmart, but the poor sales have forced the company's hand. Stores already slated for closing within the next few months will be effected by the accelerated plan, but Sears made sure to note that other stores are now eligible to get the axe, according to the Associated Press.
Sears is merely the latest in a series of retailers that experienced a difficult fourth-quarter, though it did fare worse than most of them. For example, Macy's saw a 4.7 percent drop in November and December sales compared with 2014 in stores open at least a year.
Sears, like Macy's, blamed warmer weather and increased competition on the sales decline. Apparel sales in particular took a major hit, which Sears said unfortunately has a "substantial impact on our overall profitability," according to CNN.
Overall, the company expects fourth-quarter revenue of $7.3 billion, which is down from $8.1 billion last year, and full-year revenue of $25.1. Whether or not these expectations pan out will be revealed when the retailer releases its full quarterly and full-year financial results Feb. 25.
