Shawn Nowlin shawn.nowlin@ourvalley.org
On Wednesday, January 4, about eighty K-Mart stores nationwide were informed that they will be closing this Spring as part of a business restructuring plan by its parent company Sears Holdings. Located at 1355 W Main Street, Salem’s K-Mart was included on that list.
According to Sears Holdings Director of Public Relations Howard Riefs, “store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base and accelerate the transformation of our business model.” Sears’ revenue fell 13% in the most recent quarter and as of early January 2017, there are fewer than 1,500 K-Mart stores nationwide.
When asked how the Salem K-Mart closing made him feel, local resident George Smith said, “On one hand I absolutely understand that when a company is underperforming financially, tough decisions have to be made”. He added, “At the same time though, you can’t tell me that things couldn’t have been done to save more employees from losing their job.”
In addition to K-Mart, nearly three dozen Sears stores nationwide are also expected to close in the coming months. To no one’s surprise, the reason behind the store closings comes down to overall profits and lack of sales. “The decision to close stores is difficult but a necessary step as we take actions to strengthen the Company’s operations and fund its transformation,” Riefs said. “Many of these stores have struggled with their financial performance for years and we have kept them open to maintain local jobs and in the hopes that they would turn around.”
Those looking for discounted prices on electronics, clothing items, houseware, office supplies and more need to look no further than the Salem K-Mart. “In order to meet our objective of returning to profitability, we have to make tough decisions and will continue to do so, which will give our better performing stores a chance at success,” Riefs said.
