Report: Sears Would Need To Close Nearly Half Its Stores To Succeed

Image courtesy of Scott Miller

While last week’s announced closings of 78 Sears Holdings stores made headlines, the company has been quietly culling retail locations for years. But a new analysis of the department store sector concludes that Sears and other mall mainstays are far from finished with eliminating stores.

The Wall Street Journal reports on a study from real-estate research firm Green Street Advisors, which found that for Sears to reach its 2006 level of productivity, it would need to close 43% of stores.

A similar large-scale shutdown would need to occur at JCPenney, argues Green Street, which believes that retailer would need to close 31% of its remaining locations to get back to its pre-recession efficiency.

Nordstrom and Macy’s get off with less severe recommendations in the Green Street report, requiring cuts of 25% and 9%, respectively.

“Department stores used to be a great catchall for different brands, but today many of the brands have stores of their own, and shoppers can also find them online,” a senior Green Street analyst explains to the Journal.