Sears, Kmart to close 100-120 stores

Kmart, Sears make cuts, close stores

(CNN) - Sears Holdings on Tuesday reported a sharp drop in holiday sales compared to a year ago, and said the results will force it to close 100 to 120 Sears and Kmart stores.
The company said the stores to be closed have yet to be identified.
Sears Holdings said sales at stores opened at least a year ago, a closely watched retail measure known as same-store sales, tumbled 5.2 percent in the eight weeks ending on Christmas Day. That came from a 4.4 percent drop in sales at Kmart stores and a 6 percent slide in sales at domestic Sears stores.


"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," said Lou D'Ambrosio, CEO of the company.
Shares of Sears Holdings rose 75 cents, or 1.6 percent, in pre-market trading following the announcement.
The Sears and Kmart sales results were in contrast to the broader industry. The National Retail Federation forecast before the start of the year that holiday sales would be up 2.3 percent this year, a target that was helped by record Black Friday sales following Thanksgiving. Final sales figures are not yet available.
Sears Holdings signaled that additional store closings may lay ahead for poor performing stores.