Wednesday, March 22, 2017


I work at Kmart part time and I kind of know Sears and Kmart are in trouble but this kind provides strong proof that I may be out of a job soon.
From the Chicago Tribune: After years of mounting losses, the parent company of Sears and Kmart says there is "substantial doubt" about its financial viability.
"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," Sears Holdings said Tuesday in its annual report.
The biggest question, the company said, is whether it can raise enough cash to stay afloat. It currently has $4.2 billion in debt, up from $3 billion a year ago.
Sears Holdings is the parent of Kmart Holding and Sears, Roebuck, & Co. It was formed following the March 2005 merger between the two companies, both of which are American retail icons dating back to the late 19th century. The decline of suburban shopping malls and the rise of online retail have dealt a double-whammy to the businesses. In recent years, the parent has shuttered dozens of stores and sold off some of its brands.
Sears Holding hasn't turned an annual profit since 2010. Last year, it reported losses of $2.2 billion. Annual revenue, meanwhile, declined 12 percent to $22.1 billion.
Last month, the company said it was planning a "strategic transformation" by trimming $1 billion in annual costs. It also recently announced plans to close an additional 150 Kmart and Sears stores, and sold its Craftsman brand of tools and lawn equipment to Stanley Black & Decker for more than $900 million.
At the store I work at, if it weren't for the tourists along Hwy 66, a truck stop next to the store and people who hate Wal-Mart, we would have about 5 customers a day.  The prices stink, the products stinks even more and we knowingly put damaged items on the store floor to sell.
The store I work at has had sales over $1,000,000 less than 2 years ago, or a drop of about 35%, and we are somehow still open and pull a slight profit.  It would be a shame that Sears would go out of business considering their long and storied career as a giant retailer.  But then, the buggy whip industry basically went out of business, except for the Amish who still buy buggy whips.

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