A Kmart to close that wasn't on the list.
http://www.timesreporter.com/news/20180118/corporate-to-shutter-cambridge-kmart
9 replies (most recent on top)
Did they receive patio furniture??
Leases not being renewed happen for many different reasons. The company may not have wanted to renew the lease because they were planning on closing the store. Or the company may not renew the lease because they did not want to pay the increase in rent. Or the landlord may not have renewed the lease because they could get more rent from someone else.
Many landlords are not renewing leases of long time renters because many of those renters, in this case SHC, have had long term leases at very low rates. With this economy they can either rent to someone else, most times at 3X the rate that SHC was paying. Or they can take a large store like a Kmart or Sears and divide it into smaller stores and get more rent.
Every closing is not some great SHC conspiracy to ruin a community or hurt people. Many times mall owners and communities benefit from a Sears or Kmart closing because the tax revenue generated from a new store or multiple stores bring in more money that one Sears/Kmart.
Think for a minute. If Sears/Kmart has same store sales that are falling then that means that tax revenue is falling. Which means that workers wages are cut, or stagnant. Which means even less tax revenue. Add to this any unemployment that has to be paid to those workers laid off or whose hours were cut.
Now, if a landlord can bring in a new tenant (or multiple tenants) who is willing to pay more rent, hire more people and pay more taxes then it is a win/ win situation.
@1cpa - Flippant much? Associates losing their jobs and community losing tax revenue, that's all.
Leases not being renewed, that's all.
I read an article about this store closing and local officials were not surprised about the closure
@RizpvRV-lgl Jesus christ Sears was a corporate giant 3000 stores in 2005 and now their is probably less than 800 as you said sad how much it has shrunk. People still think Sears will some how overcome, but lets face it if a company doesnt grow doesnt have positive numbers just big negative numbers its matter of time before it just goes BK.
Nobody knows how many stores there really are anymore. It seems like a few close every two weeks under the radar (with these stores getting only local coverage) and every two or three months, there goes another 50-60 or more, all at once.
Lease negotiations weren’t able to be made for this location, hence the one-off
It's very interesting to read the quarterly and annual financial statements for the number of stores open at the time of filing. That gets reported to Wall Street. In 2005 it was around 3000 between Sears and Kmart. Now, it has to be less than 900 total. Maybe less than 800.