Sears to improve its performance

USA: Sears is initiating a strategic restructuring programme of its operations targeting at least US $ 1 billion in cost savings on annualized basis, as well as improving operating performance. The cost saving includes the previously announced closure of 108 Kmart and 42 Sears stores. Under the latest plan, the company intends to simplify its organizational structure, including greater consolidation of the Sears and Kmart corporate and support functions, as well as improve accountability for profitability at store and online channels; implement an integrated model to drive efficiencies in pricing, sourcing, supply chain and inventory management; and optimize product assortment at Sears and Kmart stores, using data analytics to focus on profitable, high-return best categories. The company faced a loss with comparable store sales falling 10.3 per cent during the all-important holiday selling season in the fourth quarter of the fiscal 2016.