A few months back, Transform Holdco, which is the owner of Sears, announced that around 100 stores would be closing down. The store is scheduled to bring down the curtains between mid-October and late November. In recent months, the company has already announced the closure of many of its reputed stores.
The closing down of stores in such a huge number indicates that the chain is on the verge of collapsing. Soon, it would be putting its assets worth billions of dollars for the sale since which its competitors have been looking forward to grabbing.
In 2018’s beginning, Sears Holding had over 1000s of operating stores across the country. Those remnants that managed to survive the bankruptcy were less than half the size. Once these stores close down, Sears would have less than 300 stores combined, which are operating on a full-line basis.
According to a company statement, Transform Holdco is planning to shift its focus to the small-format stores with a proper strategy that comes with merchandise assortment limited in nature. It has also announced that the company would be buying Outlet Stores and Sears Hometown portion. The move is aimed at widening its geographical reach.
The Sears Hometown sells items such as tools, appliances, garden, and lawn supplies. Even though its stores are closing down, the company is doing well in its segment.
The announcement of the closure of a massive number of Sears stores is an indication of this fact that bankruptcy was unable to solve the problems that the company has been facing. Apart from Sears, other competitive stores such as JC Penny, Kearts, etc., are facing the same issue. However, another competitor, Target, has started gaining market shares for the last few months. The bankrupt companies are struggling to adapt according to the changing behaviors of their consumers.