Recently, Sears, Macy’s, and Kohl’s have been minimizing their stores and cutting jobs due to the rising competition against the thriving company of Amazon.
The beloved Sears has issued that it will continue its closures on Wednesday, January 4th bringing the total number of closures slated for early 2017 to 150. The reason why was ultimately to assist them through this rough time. By shutting down these 150 store locations, this includes around 208 K-Mart locations. Sears has also reported to have been selling its Craftsmen to help bring in cash in order to keep the store going.
The move is not just on for Sears, but for Macy’s too. Major moving plans are to take action soon for both Macy's and Sears. According to NCB news, “Macy's and Sears detailed massive closure plans Wednesday, shuttering more than 200 locations and shedding 10,000 jobs across the country. Sears Holdings will close 108 K-mart and 42 Sears stores over the next few months, as it looks to stem its operating losses. The company released the list of stores it plans to close after an SEC filing from Seritage Growth Properties was posted Wednesday. The real estate investment trust disclosed that it would terminate the leases on 19 unprofitable stores that had been sold off to it.”
This massive change for both Macy’s and Trends is due to their lack in consumer profit. The major culprit are new and thriving companies such as Amazon. The electronic commerce company is crushing all of these other companies in areas such as food, clothing, books, movies, earphones, and other sorts of products.
According to Business Insider, “Amazon is now the top seller of clothes online and is crushing traditional clothing retailers like Macy's, Nordstrom, and Kohl's.
Over the last 12 months, sales growth for clothing stores was flat compared to the previous year, while growth for online-only retailers — which was driven by Amazon — jumped 10 percent, according to RBC Capital Markets analysts. The retailer's apparel sales last year totalled $16.3 billion, which is more than the combined online sales of Macy's, Nordstrom, Kohl's, Gap, and Victoria's Secret parent L Brands in the same period, according to Bloomberg.”
The wait is on to see how long these big stores will stand against the flourishing and successful Amazon in sales. Sears will continue to stay open and operate more than 1,300 stores following the latest closures and will continue to sell the Craftsman brand. However, many jobs will be lost as the competition between Sears, Macy’s and Kohl’s continues to compete against Amazon.