Recent reports of Kmart’s possible demise are not true, Eddie Lampert, chairman and CEO of Sears Holdings, said in a blog post on the company’s website.
Calling the claims “false and exaggerated,” Lampert said, “I can tell you that there are no plans and there have never been any plans to close the Kmart format. In fact, we’ve been working hard to make Kmart a more fun, engaging place to shop, powered by our integrated retail innovations and Shop Your Way. To report or suggest otherwise is irresponsible and is likely intended to do harm to our company to the benefit of those who seek to gain advantage from posting these inaccurate reports.”
He noted that the company continues to operate more than 700 Kmart locations, with a significant number of these stores remaining profitable. Lampert also said the company is working to improve the performance of the unprofitable locations, and those that cannot be moved into the black will be closed.
“Actions to improve our store productivity, including reducing inventory stored in the stockrooms, are designed to make our stores easier to operate and to eliminate unproductive inventory and processes,” he said. “Decisions to close stores are never easy, but we recognize that the way people are shopping is changing significantly. This is why we have made major investments in our online and mobile platforms.”
As company officials work to restore the company to profitability, Lampert said that while its “significant asset base” gives Sears Holdings the wherewithal to fund its business, the company doesn’t intend to use its asset value to support losses.
“Focusing on our best members, best stores and best categories means a smaller overall store footprint, and one that still represents one of the largest number of stores and square footage in the U.S.,” he said. “We have a process underway to create value by positioning our Kenmore, Craftsman and DieHard businesses as well as our Sears Home Services business to benefit from broader distribution and partnerships that will allow them to grow beyond Sears Holdings. We also possess a significant portfolio of real estate assets with an opportunity to create value through improving our retail productivity and by monetizing them in a variety of ways.”
Lampert added, “While the retail environment generally has been challenging and we won’t be able to restore profit immediately, we are focused on executing our plan and establishing a foundation from which Sears Holdings can grow for years to come.”
