Sears has announced the closing of 28 more Kmart stores nationwide.
Sears Holdings has stated that it would close an additional 28 Kmart locations as it continues its mission to cut cost amid a drastic drop in the department store sector.
The once retail giant registered declining sales and profits. However, the overall results exceeded analyst projections, which led to a surge in its stock price.
The latest Kmart closures add to a list of 330 Sears or Kmart stores either currently or set to be closed later this year as the retailer strives for stability.
The company stated it would notify Kmart employees later Thursday at all affected locations and release a public list of closing stores in the afternoon.
The chain, which will still have approximately 1,000 stores after these closures, claimed in a public filing earlier this year that it believes to have at least another 12 months of cash to continue operations.
Sears is betting on its customer loyalty program, Shop Your Way, to assist in a turnaround. Also, the company recently won some favor with investors due to an agreement to sell its Kenmore appliance brand on Amazon, providing some relief.
Sears shares have risen 7.9% to $9.25 in pre-market trading.
Per usual, the looming winter holidays will be very important for the entire retail sector, and especially Sears, as it tries to bounce back from its latest bout of disappointing sales. Regardless of how Sears fares during the busiest retail stretch of the year, the holiday season is still unlikely to be the company’s ultimate breaking point