Sears Holdings (SHLDQ) stock jumped nearly 18% on May 27, following a report that the retailer was shutting many of its stores. The stock still trades under $1. Sears Hometown stores sell home appliances, sporting goods, and garden equipment.
According to an Axios report, more than 70 Sears stores are set to close soon. The closing stores are now holding liquidation sales and are offering discounts as steep as 70% on various items. The retailer operated a network of more than 400 stores in 2019.
Key Takeaway for Investors
As shopping shifts online, many retailers have responded by reducing their physical store footprint, which could be the reason for Sears’ store closures. Drugstore chain CVS Health (CVS) also plans to close as many as 900 outlets over the next three years. The rise in Sears’ stock on the stores’ closing report might be driven by investors, who are hoping that eliminating some outlets would cut the retailer’s costs and boost the bottom line.
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