Will the Bangor Mall Be Looking For A New Anchor Store?
Will the Bangor Mall be looking for a new anchor store? Sears, which run 2,500 Sears and K-Mart stores announced today (10/29/13) that they are considering spinning of their Lands’ End retail catalog business. Closing some locations that are less profitable or whose leases are about to expire and restructuring their auto service to possibly tires only plus, selling off five of their Canadian leases.
The announcement came in a reaction to an expected third quarter loss. Experts are of the opinion that Sears inability to adapt to a larger more competitive and the fact they have not upgraded their shoppers experience has led to this conclusion.
In an attempt to restore its viability last year, Sears made strides towards better profitability by cutting costs, reducing inventory, selling off some assets and spinning off others. These actions reduced net debt by $400 million and generated $1.8 billion in cash from the asset sales in the latest fiscal year. Sears also has been building a loyalty program called Shop Your Way, which accounts for 65 percent of its sales and has tens of millions of active customers.
Guess we’ll have to wait and see.