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HOFFMAN ESTATES, Ill. -- Sears, Roebuck & Co. announced plans today to slash 2,400 jobs and close 89 stores amid a tightening outlook for retailers that caused its sales to fall slightly last month. Sears to ax
2,400 jobs, shut
down 89 storesHawaii stores won't
be affected, it saysAssociated Press
Stores targeted for closing were mostly among Sears' 2,100 specialty retail locations, and include 53 National Tire & Battery stores and 30 hardware stores.
Just four of its 860 full-line department stores will be affected, in Voorhees, N.J.; Scottsdale, Ariz.; Owings Mills, Md., and Homestead, Fla. Two Sears Auto Centers are included.
No stores in Hawaii will be affected, the company said.
The closings were announced as Sears released its monthly sales update showing a 1.1 percent decline in revenues from comparable domestic stores during the holiday period -- $4.42 billion for the five weeks ended Dec. 30.
"Like other retailers, general industry softness and difficult weather conditions dampened our holiday season sales," said Alan Lacy, Sears' new chairman and CEO. The closings are to be made in the first quarter of 2001. They follow up on Lacy's declaration two months ago after taking over from Arthur Martinez that the key to turning the struggling company around was to do "fewer things better."
"Our actions reflect our heightened focus on productivity and returns," Lacy said today. "By closing underperforming NTB and hardware stores we will enhance the profitability of Sears off-the-mall businesses."
Sears also signaled it may exit the termite-pest control business. The firm said it is taking a one-time charge of about $115 million in the fourth quarter due to Sears Termite & Pest Control, citing continuing losses.
Sears' stock rose 40cents today to close at $36.43.