Hoffman Estates, Ill. — Sears said last week it will close three underperforming Great Indoors stores and convert a fourth to an outlet this year, reducing the chain of home decorating and remodeling centers to 18 stores in 11 markets.
The company expects to take an after-tax charge of $75 million to $100 million in its fiscal third quarter, mainly noncash items, to cover expenses of the move, asset impairment and related costs.
Format still has 'promise'
Despite the closings, Alan Lacy, Sears chairman and chief executive officer, said the Great Indoors format "continues to hold great promise." The company said the closings and conversion would help the chain "establish a profitable operating model based on the stores' exceptional customer appeal."
Stores to be closed are in Arlington and Willow-brook, Texas, and Cincinnati. The Shelby, Mich., store is to be converted to an outlet.
The company also said it plans to improve the chain's operations, including inventory management, merchandising and sourcing.
