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.