Retail experts warn Sears Holdings' efforts to cut costs aren't enough

Since iconic chains Sears and Kmart merged in 2005 to form Sears Holdings, the company has experienced 18 straight months of sales declines. In an effort to save the retail giants, hedge fund manager Eddie Lampert announced that Sears Holdings will close 100 to 120 of its 3,500 stores in the United States. But according to a recent Reuters article, retail executives and restructuring experts warn that these efforts simply aren’t enough.
“In a world that has WalMart and Target, there really is no need for a Kmart,” said Roger Goddu, partner of consumer brand private equity firm Brentwood Associates in the Reuters article. “The one I would choose to save is Sears.”
Reuters noted that only 32 percent of Sears Holding’s 2010 gross profit came from Kmart, reflecting the discount retailer’s thinner margins compared to Sears.