Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/448937
Sears Holdings Corp., formed from a merger with Kmart a decade ago that consolidated some 3,500 stores across the two banners, operates fewer than half that many stores today, following a few waves of closures. Chairman, CEO and controlling shareholder Edward S. Lampert says the company is cashing in part of its real estate treasure trove as a means of helping support the remain- ing stores. And he dismisses critics who say the move is too little, too late. Mean- while, industry experts mull over the value of the remaining properties and their potential reuses. "Sears real estate is a valuable asset, with tremendous poten- tial for the right tenant in the right loca- tion," said Matt Hammond, director of retail brokerage at Tustin, Calif.–based Coreland Cos. But "only 25 percent of Sears locations are in 'A' markets." E A r S , T H E n E A r L y 130-year-old retailer that arguably invented big-box shopping, was once America's largest merchant and employer. Today Sears faces a scene that has changed radically since the catalog company of the late 1800s opened its first department store in the 1930s. And the company is de- constructing parts of its still-imposing real estate portfolio in ways that could make a profound impact on the U.S. retail landscape. The company, which closed roughly 200 Sears and Kmart stores last year, is also adjusting store sizes. And it is team- ing up with such retailers as U.K. apparel seller Primark, which is taking a full floor from Sears at six sites in the northeast- ern U.S. and will fully occupy a seventh store, at Philadelphia's King of Prussia Mall, already shared by Dick's Sporting Goods. In a December letter to Sears employees, Lampert called the com- pany's remaining properties "a flexible real estate portfolio which gives us time to try to turn around underperforming locations without the potential burden of long-term losses that would otherwise prevent us from taking these risks." Whole Foods has helped Sears down- size by subleasing roughly 40,000-square- foot portions of stores at Colonie Center, in Albany, n.y.; at Westfield S The Sears situation what does the future hold for sears holdings? By Steve McLinden r e t a i l i n g t o d a y 24 S C t / f e b r u a r y 2 0 1 5