29 Dec 2011

Store closures announced

1:28 pm on 29 December 2011

Shares in Sears Holdings fell 27% on Wall Street after the company announced plans to close up to 120 Sears and Kmart stores in the United States due to falling sales.

Sales at Kmart fell 4.4% and by 6% at Sears in the eight weeks to Christmas Day.

The company expects fourth-quarter earnings to be less than half of last year's amount.

The BBC reports both Sears and Kmart have experienced a decline in demand for consumer electronics. Kmart also reported a decline in clothing sales.

Sears Holdings has 2200 outlets in the United States.