No Nevada Kmarts are among the 72 stores the retailing giant plans to close in a cost-cutting move announced Tuesday.
Kmart Corp. announced the closing as part of a series of actions to strengthen the company's financial performance. The announcement said Kmart's earnings for the second quarter and the year will be below expectations.
Though Nevada Kmarts will escape the ax, seven California stores are on the initial list of 66 expected to be closed by Nov. 1, one each in Anaheim, Barstow, Bishop, Marina, Sacramento, Sanger and Woodland.
The 66 store closures will be scattered across the nation, with nine announced in Illinois the highest concentration. Six more store closures in California, Ohio and New York will be announced later.
"While, in most cases, these stores are marginally profitable, it was determined they did not justify the related capital investment due to a variety of factors such as their location and their suitability for expansion," the announcement said.
The company currently has 2,165 Kmart, Big Kmart and Super Kmart retail outlets in the 50 U.S. states, Puerto Rico, Guam and the U.S. Virgin Islands.
In the wake of Tuesday's financially oriented announcements, the company Wednesday announced a new organizational structure and several senior-level executive changes.
Kmart chairman and CEO Chuck Conaway announced the promotion of Andy Giancamilli, to the newly created position of president and chief operating officer. Conaway also announced an executive-level search to fill a newly created post of chief marketing officer.
The retirement of Donald W. Keeble, president of store operations, of U.S. Kmart stores also was announced. Keeble, a 29-year Kmart veteran, previously had responsibility for all aspects of store operations as well as real estate, facilities management, design and construction and corporate purchasing.
Tuesday announcement said Kmart currently expects its second quarter earnings from operations to be in the range of $.04 to $.07 per share.
