Sears goes into PANIC mode by cutting senior management positions, closing 92 pharmacies in Kmart stores, along with 50 Sears Auto Centers
According to USA Today Sears is aggressively downsizing their sinking ship, by cutting key senior management positions and closing more pharmacy’s and auto centers.
Sears, which has been shuttering stores to boost its bottom line, announced more steps Friday to try to get its financial house in order, including finding an extra $250 million in savings and a new chief financial officer.
The beleaguered retailer has raised its savings goal for this year to $1.25 billion, a target it hopes to reach by cutting some senior management positions, and closing 92 pharmacies in Kmart stores, along with 50 Sears Auto Centers. Those closures come on top of the planned shuttering of 150 under-performing stores that were announced in January.
“Earlier this year, we initiated a strategic restructuring program and committed to improving our operating performance and financial flexibility in a very challenging retail environment,” Edward Lampert, CEO of Sears Holdings, said in a statement. “While we have made significant progress in reducing our cost base and enhancing our member value proposition, we need to take further action.”
Sears has been trying to turn around its flailing operations, selling off pieces of its expansive real estate, borrowing money and shedding some of its vaunted brands. The iconic retailer has been battered by many of the same challenges that are pressuring other traditional store chains which are struggling to compete with Amazon and other online sites.
But Sears’ financial troubles are deep. It hasn’t turned a profit since 2010, and last year racked up more than $2.2 billion in losses. It’s also been dogged by a series of management missteps, from the sale of its more than $30 billion credit portfolio to Citibank in 2003, to a merger with Kmart, another struggling retailer, in 2004.