A struggling discount retailer is shedding stores in a bid boost its financial position.
Sears (SHLD) has sold off almost one dozen stores over the past year and a half. The stores, which are among the retailer’s most profitable outlets, are scattered across the U.S. and Canada. There are 2,000 Sears and Kmart stores in the U.S. The company also operates 148 Sears locations in Canada, the Wall Street Journal notes.
Property developers say it is unusual for retailers to sell high-performing stores, instead of renovating them.
A representative of Sears told the Journal that the store sales generated enough revenue to compensate for the loss of operating income. The spokesperson also noted that the company has shuttered 300 Sears and Kmart locations since 2010, with just 2% of those performing at or above expectations.
Falling store revenue has hit Sears hard in recent years. The company has lost more than $4 billion dollars in just two years, prompting the retailer to look to asset sales to raise $500 million in needed cash. Sears has raised $277 million from selling stores and leases through the second quarter of this year.
Once the leader in appliance sales, Sears has lost significant ground to rivals including Home Depot (HD) and Lowes (LOW).
Shares of Sears fell more than 1% in Wednesday morning trading.