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CINDY ELLEN RUSSELL / CRUSSELL@STARADVERTISER.COM
Carts at Kmart in Iwilei were seen lined up on Jan. 12. An additional 64 Kmart stores will be shut down by mid-December, including the Waikele Kmart.
Sears Holdings Corp. will close an additional 64 Kmart stores, according to a person familiar with the matter, a sign the chain is stepping up efforts to shutter underperforming locations.
The Kmart store closings were previously reported by Business Insider (which said Kmart’s Waikele store on Oahu is among those to be closed).
The stores will be shut down by mid-December, according to the person, who asked not to be identified because the move hasn’t yet been announced. The store closings come in addition to a push earlier this year to eliminate 68 Kmarts and 10 Sears stores. The company had 941 Kmart locations as of January, so the two rounds would winnow the chain by about 14 percent.
Sears, which merged with Kmart more than a decade ago, has struggled to maintain sales at the discount chain. The overall company has lost more than $9 billion in recent years, hurt by slowing mall traffic and a shift away from department stores.
Edward Lampert, the hedge fund manager who serves as Sears’s chief executive officer and top investor, has been coping with the red ink by shrinking operations and unloading assets. The company also spun off some properties into a real estate investment trust last year, generating about $2.7 billion.
Still, the company continues to burn cash. Sears lost $395 million in the most recently reported quarter, which ended July 30. Lampert’s firm, ESL Investments Inc., agreed to lend Sears $300 million last month to help keep the chain going.
Sears fell 2.7 percent to $11.79 as of 3:46 p.m. in New York on Monday. The shares had already declined 41 percent this year through the end of last week.
They can close all Kmart and Sears locations and they will still lose money.
Target will open its central Oahu location in Waikele!
Really hope this happens.
What about cesar’s pizza? I love that place.
Costco SHOULD REPLACE kMART AT sTADIUM Mall to serve windward Oahu!
That makes no sense. Earier to drive to the one near town. Better yet build one on the windward side.
You haven’t been in Hawaii long? The original Costco was where Target is now in Salt Lake. Why would they build out another store within a mile or two of the one they already closed?
Gotta laugh at how some rookie posters just haven’t got a clue, fail to do their research.
Not surprised. Too bad, as Kmart really cleaned up the Waikele store and made it look nice. I don’t expect Sears to survive much longer either. The Pearlridge store looks run down and tired. Sears is not going to overhaul this store. Sad.
My Sears store at Ala Moana Center closed, so they lost my business.
People actually shop at Sears and Kmart?!? Who would have thought?
Some will walk away with a golden parachute while the stores shut down and liquidate. I would hope that there would be means to keep the Sears appliance (Kenmore) intact along with their Service Operations. In addition, the continued sale and support for the Craftsman line of products. Sad news for those who will lose their jobs as Sears and K-Mart stores close up. This is just an indicator of the economy…don’t confuse stock market with economy…
You’re correct. It’s an indicator of how markets in the American economy have changed. What it’s not is an indicator, leading or trailing, of an economic downturn.
Obama’s cohorts say otherwise according stats just recently released?
Don’t care about KMart, but hate to see Sears close.
wooo hoo! What store is going to take over their space? Hopefully something LOCALS can shop at!
Huh? Locals are mostly the only people I see shopping at KMart.
Cheaper to buy appliances from Home Depot, Lowes or Best Buy than Sears
Sad! Kmart renovation was nice. Ironically, Sears was the new kid on the block during the Big Five era and wasn’t welcome then, but it grew to become the average family outlet. Changing times and many new faces. Old timers can’t keep up with it all, there again we past our prime for all material things . Just give us Longs and the pharmacy dept. that’s all we need! 🙂
Edward Lampert, the hedge fund manager has a plan to strip Sears of valuable assets — real estate, brands and trademarks — move the money to protected entities, and then declare bankruptcy. He will make millions in the deals. All sears and kmarts will be gone in a few years.
Thanks to Steve and crew for the great service at the pharmacy! Went to Longs for decades but never had the customer service like this group provided. Sad to see them leave through no fault of their own. Aloha and Mahalo!
True. Longs will NEVER compare in exemplary customer service as well as personalized care as these individuals provided.