The Kmart on Lewiston Road in Batavia is one of 142 stores owned by Sears Holdings Corp. to be shuttered by year's end. Liquidation sales are expected to begin soon.
The manager of the Batavia store, located at 8363 Lewiston Road, referred us to a corporate spokesman but we have been unsuccessful in contacting him to find out how many local employees will be out of a job.
There are about 700 stores currently open, down from 3,453 stores in 2005 when Kmart Holding Co. bought and merged with Sears Roebuck & Co. in a cash and stock deal then valued at $11 billion. The new entity became Sears Holdings Corp.
Sears Holdings has filed for bankruptcy and plans to reorganize its massive debt and reemerge on more solid ground. It reported liabilities of $11.3 billion and assets of $7 billion. A $134 million debt payment was due that it could not make at the time of filing.
Under the safety net of Chapter 11, Sears Holdings will be able to remain open through the holidays while striving to square away its finances.
But retail business analysts say returning to a position of strength and relevance will be difficult to do. Since the hoopla surrounding the merger in 2005, the parent company has struggled with anemic sales, crippling debt and shifts in consumer spending, especially the juggernaut of e-commerce.
One advantage e-commerce formerly enjoyed was not having to collect sales tax. But over the years, most U.S. states passed online shopping sales tax laws. Even so, about half of all Amazon.com purchases, for example, are sold on its Amazon Marketplace through third-party vendors, and these purchases remain tax free (with the exception of Washington state).
More to the point, critics say Sears Holdings Corp. is not faring well because it has not reinvested in decaying stores; and it sold off iconic brands like Craftsman tools without giving consumers new brands and incentives to buy. The down slide has been going on for so long, they say, the retailer has become irrelevant and consumers are moving on.
Sears Roebuck & Co. started in 1886 and was able to grow by leaps and bounds thanks to its the proliferation of its mail-order catalog business, using the U.S. Postal Service to deliver goods from its Chicago warehouse to growing suburbs and the hinterlands beyond them. For generations of American families, stores coast to coast sold everything to everybody -- studio portraits and Goodyear tires, Kenmore stoves and Craftsman tools, home goods and engagement rings.
And the "Blue Light Specials" of its once-feisty rival Kmart are pure Americana. A store associate would announce a hot deal over the loudspeaker by saying: "Attention Kmart shoppers..." and the blue lightbulb would flash and for the next 30 minutes, say, there would be a deal in the Shoe Department on bags of tube socks.
"It's always sad to see a local business close," Genesee County Chamber of Commerce President Tom Turnbull told our news partner WBTA late this afternoon, adding that Kmart has been in Batavia a long time and he remembers when it was at the other end of town.
"But that's the circle of life," Turnbull said. "Others will step up and take its place."
