Wednesday, May 2, 2012

Sears – Canadian Stores Dragging Profits Down

Sears announced yesterday in a press release that their Canadian subsidiary has experienced a decrease in sales during the first quarter of 2012 in the following departments: electronics, hardware, home décor and clothing.
Sears released their preliminary report yesterday noting a 6.2% decrease in their Sears Canada locations. Certain declines in merchandise within Sears sales were said to be offset by increases in certain major appliances and mattress sales.
Along with the reported decline in sales, Sears Holding announced an estimated adjusted loss of US $30 million, and best case scenario Sears Canada will break even.
It is also sad to hear, but Sears has announced they will be closing their three high-profile department stores including the one in Vancouver, affecting an estimated 670 jobs. In an effort to help cut costs, Sears has also chosen to cut their brand offerings from 90 to 20. This will be quite a dramatic loss in brand selections for consumers shopping in Sears store locations.

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