Sears closings: After store closures, little hope for a rebound
Kmart and Sears closing will effect 120 stores nationwide. But these Sears closings might not save the company, says one analyst.
Sears closings hit between 100-120 of its Kmart and Sears stores. It still unclear if this store will be closed or not. Pictured, upper entrance into Sears at Oak Hollow Mall.
Sonny Hedgecock - The HIgh Point Enterprise/AP
Sears' decision to close up to 120 Sears and Kmart stores shows a retailer struggling to draw shoppers at a time of increasing competition, Credit Suisse retail analyst Gary Balter told CNBC.
"I don't know how they're going to turn it around," he said Tuesday. "This was a company making $3.6 billion in Ebitda four years ago," compared to $400 million this year "at a time when others are turning things around."
Balter, with a $20 price target and "underperform" rating on the stock, said Sears has been losing market share to Home Depot and Lowe's on sales of power tools, and Wal-Mart and Target on drawing shoppers seeking discounts.
