Sears announces closure of 72 stores — Tyler location not on the list
Published 5:00 pm Thursday, May 31, 2018
- This May 11, 2017 file photo shows a Sears store in Hialeah, Fla. Sears is closing another 72 stores after reporting a first-quarter losses and plunging sales. The struggling retailer said Thursday, May 31, 2018 that it has identified about 100 stores that are no longer turning profits, and 72 of those locations will be shuttered soon. (AP Photo/Alan Diaz, File)
Sears announced on Thursday that it would close 72 Sears and Kmart stores — and the Tyler location was not on the list.
There were, however, five Texas locations slated for closure, including a Kmart in Laredo, and Sears stores in Lewisville, Fort Worth, Cedar Park and Denton.
Local speculation on whether the Tyler store would remain open began when Simon Property Group, which owns the Broadway Square Mall, announced in May that it would be demolishing the current Sears building and remodeling the south end of the facility.
Sears issued a statement on the matter after the Tyler City Council’s May approval of the new site plans.
“We have a multiyear lease at the store and we plan to continue serving our customers and members in Tyler,” it read.
Simon Property Group intends to build about 118,000 square feet of retail space, including the Sears building’s replacement and an additional building with room for two tenants.
The proposal also would build two new restaurants on the property near South Broadway Avenue and change the parking layout on the land. There will be less square footage on the property devoted to parking, but more devoted to landscaping.
The beleaguered retailer said it has identified about 100 stores that are no longer turning a profit, and the majority of those locations will be shuttered soon.
The company has not released a list of the full 100 underproducing stores, so it’s unknown if Tyler is on that list.
Sears lost $424 million, or $3.93 per share, for the period ended May 5. It earned $245 million, or $2.29 per share, a year earlier, a quarter that included a $492 million gain tied to the sale of the Craftsman brand.
Revenue tumbled more than 30 percent to $2.89 billion, with store closings already underway contributing to almost two-thirds of the decline.
Sales at stores open at least a year, a key gauge of a retailer’s health, tumbled 11.9 percent. Comparable-stores sales slid 9.5 percent at Kmart stores, and 13.4 percent at Sears.
The onetime powerhouse retailer that survived two world wars and the Great Depression has been calving off pieces of itself as it burns through money.
Kenmore, the retailer’s appliance brand, became the latest potential sale after ESL Investments, the company’s largest shareholder, headed by Sears Chairman and CEO Edward Lampert, said it might be interested in buying it.
Lampert, who combined Sears and Kmart in 2005 after helping to bring the latter out of bankruptcy, has long pledged to save the famed retailer, which started in the 1880s as a mail-order catalog business.
Shares of Sears Holdings Corp., based outside of Chicago in Hoffman Estates, Illinois, fell more than 4 percent before the opening bell Thursday.