Reporting its 10th loss in the last 15 quarters, SEARS Canada posted, again, its never-ending struggle in the department store chain business reflecting their not-so effective turnaround plans.
For years, the company’s sales were at a decline as compared to competitors including Target Corporation, Wal-Mart Stores Incorporated and Nordstrom Incorporated. Following suit, the company had already cut about 3,000 employments, sold valuable leases and closed down many stores.
Sears further decline was accounted to the resignation of turnaround specialist, Chief Executive Douglas Campbell resulting to struggling company efforts. Just recently, Sears Holding revealed it would cut its stake in the company to up to 12 from 51 percent.
Adding fuel to the fire, Sears Canada’s same-store sales dropped by up to 9.5 percent until the end of November 1 in the previous year, resulting to a further slump of 15 percent from $738.82 million to C$834.5 accounted to lease sales and store closures. With that being said, its losses widened to C$1.16 per share from C$1.16 per share in 2013, revealing 35 percent drop in shares highlighted with C$10.99 on Monday’s close (Toronto Stock Exchange).
Let’s wait and see what’s next for Sears. Will they ever survive this year despite major slumps in sales and performances? What will be the next major step for this struggling company?