Dive Brief:
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Sears Holdings Corp., which runs Sears and Kmart stores, said Monday its Q1 losses narrowed thanks in part to its closing of some 200 stores last year.
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But sales in stores continue to decline. Sears struggled to sell consumer electronics, apparel, home appliances, lawn and garden, and its Auto Centers also faltered. Kmart saw weak sales in consumer electronics, apparel, grocery, household, and drugstore items.
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Sear's REIT will likely be declared effective this week by the Securities and Exchange Commission, the company also said, and will garner cash from that as it sells properties and leases back stores.
Dive Insight:
Sears continues to struggle to regain its footing, although stemming losses this way can only provide some relief. That should be helped greatly, too, with its REIT, which will garner more much-needed cash. But that will be a one-time influx of funds.
The retailer's e-commerce business through its Shop Your Way program has been something of a bright spot, but it must now find ways to boost sales in stores.
