Store closures will continue to be a running theme in retail throughout 2018, and department stores are already leading the way. In an internal memo, Sears told its employees that it will be closing 103 more stores in 2018 — 64 Kmart stores and 39 Sears stores, all of which are expected to shut between early March and April.
Macy’s is planning 5,000 job cuts in 2018 and will close seven previously unidentified stores that were not part of a batch of 100 store closures first announced in 2016. The Macy’s closures come after a positive holiday season which saw November and December comparable sales increase 1.0%. The company expects to save $300 million from the cuts and store closures beginning in fiscal year 2018.
Liquidation sales at closing Macy’s stores will begin as soon as Jan. 8, while Sears will start liquidating stores as soon as Jan. 12.
Sears declined to say how many employees would be affected by the closures, but noted that most of the jobs are part-time positions and eligible workers will receive severance.
“We will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members,” Sears said in a statement.
Sears had already announced plans to close 63 stores by late January. As of Oct. 28, it had 594 Sears stores and 510 Kmart stores in the U.S., 399 fewer stores overall than a year prior.Since 2015, Macy’s has closed more than 120 stores.