April 22 (UPI) — Retail giant Sears said it will close 50 auto centers and 92 underperforming pharmacies inside Kmart stores in a bid to further cut costs in the face of rising red ink.
The cuts come just four months after the Hoffman Estates, Illl-based retailer announced it would close 150 Sears and Kmart department stores across the country. At the time, CEO Edward Lampert said the company needed to reduce operating costs by $1 billion. In announcing the new round of closures Friday, Lampert said the cost cuts would now total $1.25 billion.
In addition to the auto centers and pharmacies, the company said it would reduce its corporate management ranks, though it offered no estimate of how many jobs would be cut at the corporate level.
And in yet another move to boost the bottom line, Sears recently sold its Craftsman brand of tools to competitor Stanley Black and Decker, in a deal worth $900 million. The company brought in an additional $177 million by selling properties.
Sears is just one of scores of brick-and-mortar retailers struggling to keep up with online competitors like Amazon that offer seemingly endless retail options at the tap of a screen or click of a mouse.
The company said some employees were notified they would be laid off Friday, while others will be told in the coming weeks.
“We obviously don’t take these decisions lightly,” Lampert said. “But in order to be a more competitive retailer and return the company to profitability, we need to look for ways to streamline the operations.”
Sears has not turned a profit in seven years and racked up $2.2 billion in losses in 2016.
