Sears Holdings will close 28 more Kmart stores as the firm looks to further cut costs. The upcoming closures will come in addition to 300 Kmart and Sears locations slated to cease operation by the end of 2017, some of which have already shut their doors, USA Today reports.
The locations impacted by the announcement span from California to Pennsylvania. Following the closures, the company will retain approximately 1,000 locations. When the most recent quarter ended, Sears Holdings totaled 610 Kmart stores and 619 full-line Sears stores still in operation.
Sears Holdings saw its stock price rise 6.42 percent as the company’s recent results came in higher than analysts expected, despite declines in profits and sales. It is also making changes to its store sizes to better compete in the increasingly aggressive retail market.
“We will continue to right-size our store footprint to ensure we are positioned to meet the realities of the changing retail environment,” said Sears Holdings CFO Rob Riecker during an investor call, according to USA Today .
Sears is making adjustments in the face of continuing department store sales declines. Kmart saw sales fall significantly during the most recent quarter in its grocery, pharmacy, consumer electronics and household goods departments, while Sears’ sales suffered in apparel, lawn and garden, home appliances and consumer electronics.
“We are making progress on the strategic priorities we outlined earlier this year and remain focused on returning our company to profitability,” said Sears CEO Eddie Lampert in the USA Today statement. “The comprehensive restructuring of our operations is delivering cost efficiencies helping drive improvements to our operating performance.”
Sears Holdings aims to cut costs by $1.25 billion before the end of 2017. To help achieve its goal, the company sold its Craftsman line of tools to Stanley Black & Decker for approximately $900 million earlier this year. In addition, it is poised to begin selling its Kenmore-branded appliances on Amazon, which could also boost sales.