A popular department store chain, Sears, is set to permanently close one of its locations next week following financial challenges that led to bankruptcy.
In light of these troubles, the store currently hosts a sale with discounts of up to 70%, offering customers a final opportunity to purchase goods at significantly reduced prices.
Sears Closes Last New Jersey Location
Sears, a well-known department store chain, is set to shut down its final store in New Jersey this coming Sunday, March 3. This closure marks a significant downsizing for the once-dominant retailer, leaving only 11 Sears stores in the mainland United States.
The store that's closing is located in Newport Mall in Jersey City. It holds the distinction of being the only Sears store that serves the residents of New York City. With its closure, New York City shoppers will face a considerable change.
The nearest Sears store for them will now be in Braintree, Massachusetts, a distance of 227 miles. This marks a notable shift in the area's retail landscape and signifies Sears's ongoing challenges in the current retail market.
Since its opening in 1987, Sears has been a cornerstone of Newport Mall, serving as its anchor store. However, recent developments suggest a shift in the mall's retail landscape. According to CNN, there's buzz that Primark, a popular Irish discount retailer known for affordable clothing and home goods, might be stepping in to fill the space left by Sears.
The news of Sears closing its store at Newport Mall was officially shared with the public through a Facebook post. In this announcement, the store informed its customers of a significant sale, with discounts ranging from 25% to 75% on all items.
This sale marks the end of an era for Sears at Newport Mall and opens up an opportunity for new retail experiences with potential new tenants like Primark.
Also Read: Macy's Announces Closure of 5 Stores in 2024, Cutting Costs Amid Economic Challenges
Sears' Dramatic Decline from Retail Giant
At the height of its success, the iconic retail chains Sears and Kmart boasted a massive presence with 3,500 stores across the United States. Additionally, following their merger in 2005, they employed over 300,000 staff members.
However, the current scenario paints a starkly different picture: just over a dozen Sears stores are left in the continental U.S.
In a recent development, two Sears locations in Burbank, California, and Union Gap, Washington, have unexpectedly reopened. The Burbank store, in particular, has garnered attention for retaining the classic Sears look and feel, as noted by a CNN reporter who visited last month.
Sears is owned by Transformco, a company operated by hedge fund manager Eddie Lampert. Lampert acquired the chain nearly two decades ago for $11 billion. Under his leadership, Sears, once a cornerstone of American retail, has seen a significant decline, leading to its current reduced status in the retail industry.
Lampert's acquisition, Sears, with a 138-year legacy, faced declining sales due to minimal investment in store renovations, delayed e-commerce adoption, and stiff competition from other retailers and online giants like Amazon. By 2018, these issues led Sears to file for bankruptcy.
The following year, Lampert's hedge fund bought the company out of bankruptcy, rebranding it under Transformco with 223 Sears and 202 Kmart stores. Yet, six years later, most have closed. Speculations arise that Lampert's motive was more in real estate than retail revival.
The future of Sears under his management remains uncertain, with the company's media department unresponsive to inquiries.
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