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Sears has been on a downward spiral almost since the day it merged with Kmart in 2005. And that plunge seems to be picking up speed.
The company said this week that it may sell its 51% stake in Sears Canada, which operates nearly 20% of the company's stores worldwide. It has quietly closed nearly 100 U.S. stores in the last year. Next week, it's expected to announce dismal fiscal first quarter results and possibly yet more store closings.
"They have too many stores and they're losing a lot of money, burning cash," said John Kernan, an analyst with Cowen.
Kernan expects the company to close 500 of its 1,980 U.S. stores in a few years and, ultimately, to go out of business.
"The lights are going off at Sears and Kmart," he said. "There are tumbleweeds blowing through the parking lots at Kmart. They're basically completely irrelevant."
The company won't comment on store closings, but CEO Edward Lampert reportedly told shareholders at this month's annual meeting that "closing stores are going to be part of our future. The world has shifted." A company spokesman did not dispute that quote.
Related: Everything must go - Behind the flood of store closings
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Now is it sears turn to face the hurdle? Sear stores are closing down, why what’s the main reason behind this?
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