Christmas hasn’t been so good to everyone this year. The retail stores thought they would make a killing during the biggest season of retail sales, but some came up short. And to come up short during the biggest Black Friday the country has ever seen is a tell-tale sign that it’s time to pack it up.
According to Reuters, Sears Holding Corp. will be closing 120 of its Kmart and Sears stores. The numbers for Christmas sales slumped so low that the order had to come down from the top. Kmart and Sears have been sinking ever since the merger in 2005. Whoever heard of a department store chain as strong as Sears having to go get a credit card out to pay its bills?
The blame is being set on the Sears’ chairman Edward Lampert. Financial analyst, Brian Sozzi, believes Lambert let the stores deterioriate without stepping in with some sort of damage control long before it came to this. But with the closing of so many stores they expect to recover.
“In a memo to staff obtained by Reuters, Chief Executive Lou D’Ambrosio, who took the job in February, blamed the economy for some of Sears’ problems but acknowledged “we also did not execute with the consistency or speed necessary” in areas under Sears’ control. “We will do better,” he continued.”
Read the full report here.