Local Kmart, Sears Stores to be Spared – For Now

Local Kmart and Sears stores have so far been spared in a wave of closures announced last weak by parent company Sears Holding.

Thanks to slow sales capped off by a less-than-stellar holiday season, Sears Holding says up to 120 Kmart and Sears stores could close. The closing list is currently 80 stores long, and the company has said it has no definite timetable for scheduling further closures.

Of the current list of stores slated to close, none are in New Jersey. The final list will be released on this website. 

Manahawkin's Kmart Plaza is home to a Kmart store and Sears Auto Center. There is also a store in Brick and a Sears at the in Toms River, where the Sears is has been an anchor store since the mall's opening in 1976.

A press release issued by the company said both brands lost money during in 2011. That loss is being attributed to "decreases in the consumer electronics and apparel categories," according to the release. Another contributing factor was a drop in sales of "consumer electronics and home appliance categories." The sales of items like apparel were also flat which did not help the company's situation.

In light of the losses, Chief Executive Officer Lou D'Ambrosio said changes will need to be made. "Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model."

By closing the stores, the company estimates it will "generate $140 to $170 million of cash," by selling the inventories of the stores. D'Ambrosio said the changes should benefit the customers and the company. "These actions will enable us to focus our investments on serving our customers and members through integrated retail – at the store, online and in the home," he said.

If one of our local stores ended up on the chopping block, would it matter to you? Take our poll and let us know what you think in the comments.