US department store group Sears Holdings Corp tumbled the most in eight and a half years in early trading yesterday after saying it will close up to 120 stores, with a deeper-than-expected sales decline casting doubt on chairman Edward Lampert’s efforts to turn it around.
Lampert has tried several strategies since merging Sears with Kmart in 2005, none of which has reversed falling sales.
Same-store sales at the largest US department store chain fell 5.2 per cent in the eight weeks ended December 25th, Sears said.
Sears fell 24 per cent to $35.01 before midday in New York yesterday, the biggest intraday decline since April 29th, 2003.
The shares had already fallen by 38 percent in 2011.
Closing the stores will generate $140 million to $170 million of cash from inventory sales and leasing or sales of the locations.
– (Bloomberg)
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