Sears Holdings Corp. (NASDAQ: SHLD) announced the closing of 66 additional stores, this is on top of the 180 stores already designated for abandonment for this year.
Since the Q1 report was released on May 25th, the stock has been slowly but surely ambling towards nothingness with investors heavily bearish on the outcome. The company itself had released word of potential bankruptcy, stating, “Our historical operating results indicate substantial doubt exists related to the Company's ability to continue as a going concern,” on its 10K filing. And this holds weight, the company’s store count has been dwindling in recent years, with 2,019 locations in 2012 to less than 1,200, once all planned closing occurs for this year. The company and its CEO Edward C. Lampert has attributed this decline to streamlining operations and paying off debts, working towards a new, leaner model. In reality, the company is heading towards bankruptcy, the store closings and the sale of Craftsman can be seen as direct proof, the company hasn’t had a favorable earnings report for the last 20 consecutive quarters. The fact that there has been no movement towards changing the policies and practices, other than implementing Shop Your Way, which has seen moderate success but not nearly enough to offset the losses, shows that there isn’t a vision to climb out of the deep whole Sears currently finds itself in. With the brick and mortar retail industry continuously getting hammered by long-tail online retailers, a change of tact is needed, and Sears does not seem to be on the right side of the bell curve.
"We don't need more customers," said Mr. Lampert in a recent keynote, "We have all the customers we could possibly want.” Seems like he has the “right” idea for his business.