Remember the days when everyone would shop at Sears for back-to-school clothes after receiving the annual catalog in the mail? Well, the once-dominating department store is closing stores across the U.S. This is due to the company’s inability to reach sales goals, which ultimately means they’re losing profits. They currently can’t afford to keep stores open that are underperforming. In fact, Sears has been suffering for some time now, having closed a number of stores over the past 5 years. But things are accelerating, and the retail chain is looking to close at least 70 more stores nationwide. Read on to learn more about what’s been going on and where the company is looking to go from here:
A Rough Year
As we have already seen, Sears has been struggling for the past several years. Particularly in the last 5 years, they’ve closed at least half of their stores nationwide. This past year, though, sales have really been down. Every month, Sears is announcing that more and more stores are closing in coming months. The most recent count (June 2018) totals 166 store closings. They will begin shutting down in July and August 2018, with all the stores on the growing list to be closed come September.
Strategy Before Closing
Sears has been slashing prices in an attempt to increase sales and profits. This tactic, however, has not been working, as the company’s sales and profits continue to plummet. It’s common for stores to have have large closing sales in hopes to make a few more final sales before they close. Unfortunately this doesn’t save the closing stores, but it’s at least a strategy utilizing all possible ways to alleviate financial burdens and work toward paying back arrears.
The future of the company is uncertain. They may just barely make it through 2018. If something doesn’t change, the store will definitely not make it through 2019. Sears has to revamp their marketing strategy, improve their offerings and selections in stores, or work on inviting a new target audience and a new population of customers. Sears could well easily dissipate, just like Toys “R” Us did earlier this year when they filed for Chapter 11 bankruptcy.
In recent months, many businesses, companies, and organizations have either gone under or filed for bankruptcy. It’s hard to imagine a big box store like Sears going under, but it’s becoming a reality for more stores than expected. Will they end up filing for bankruptcy, or will they dig themselves out of the hole? Will closing these stores get the company on their feet again, or will they still face financial difficulties? Retail stores are consumer-driven, and very dependent on supply and demand. For Sears, only time will tell. For more information about bankruptcy, contact The Law Office of Barry R. Levine today by phone at 978-922-8440, or visit our website at http://levinelawoffice.com.