Does anybody know what level of sales per store is needed to make a profit? Without knowing K-mart's margin....it's hard to know if my store will close or remain open? I heard via the rumor mill that our store had about $9M in sales in 2016.
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I would say that over 90% of all Sears/Kmarts have negative EBITA. They are slowly closing every store. It takes money and time to close a store so they can't do them all at once. It is too expensive. They are just trying to keep it going as long as possible to get every last penny of value from the company. The only wild card is the vendors. IF the vendors stop shipping merchandise then it is game over. Study Circuit City to see how that works. CC was in financial trouble but kept going until the vendors pulled the plug.
Just go to Game On and Check your EBITDA under financials. If you have negative EBITDA you will probably be closing soon.
Perhaps so. There are 2 Sears and 1 Kmart in my area within 30 minutes of each other. My store hasn't been chopped yet, either have the other 2.
Volume does not matter. SHC has closed profitable stores, they have closed stores whose lease expired even though the stores made money, they have kept open stores that lose money. I would say it has to do with logistics. This means that if you have a store that is way out from other stores you will close next. It cost lots of money to deliver goods to stores and if stores aren't close to one another than it is not cost effective to keep them open---even if they are making money. Just look at the last few closings, they are all in one state, one area or in districts that are close together. Little by little they will close stores that are not close to a DC or are clustered in an area. Logistics is the key.
Also stores that say S_ars or KMa_t or any really other combination of letters that used to says Sears or Kmart before they stopped maintaining your sign 5 years back.
I would guess about 10 mill. My store seemed to hover between 9-10 mill. When we slid below 10 mil we lost our operations manager and hard lines manager and there seemed to be more cut backs. Life seemed happier at work when they called themselves a 10 million dollar store anything below that management beat you over the head with metrics and cutbacks.
If it says sears or Kmart on the front of the building your volume doesn't matter... you are closing
There is a lot more that goes into a store closing then what it's sales volume is, location, leased or owned building, demand of property, condition, payroll, utilities, insurance rates, etc .. but 9mil isn't a huge volume store, but could be enough to keep the doors open and lights on.
there's a rumor your store will be closing