Sears Selling More Stores
An industry source tells us not to be surprised at the news that Sears Canada Inc is open to more real estate sales. The company is in the process of a major restructuring. Up to now, with disappointing operating results, they’ve been dumping both valuable real estate and prime leases—seven in the past year, generating millions in revenue for the retailer. Based on these recent sales, it appears they are going down the chain, starting with the most valuable assets to the least valuable, targeting (to date at least) the major landlords that both know the assets and potential demand and have the resource capability to add the greatest value, the source says. They also are reaching out to other retailers interested in taking some of available space, as well as re-sizing and restructuring stores they want to keep. There are no Targets on the doorstep to take all or a majority of the spaces, sources say. The impact of Target’s troubles in the Canadian market means that big US retailers, in particular, are more cautious about expanding north of the border. (Just like their hockey team, they just can't handle Canada.)
