Eddie Lampert, chair and ceo of Sears Holdings (Hoffman Estates, Ill.), said last week that the $2.5 billion generated by the company’s recent sale of 254 properties will “put to rest a lot of the doubters” who have predicted the demise of the company.
Speaking at Sears Holdings’ annual meeting, Lampert, who owns 48.5 percent of the company, did not disclose exactly how the funds will be spent, according to the Chicago Tribune. However, the executive stated that some of it would go toward debt and pension obligations.
Lampert said the company plans to reduce the size of many of its remaining Sears and Kmart stores, from an average of 150,000 square feet to 75,000 square feet. Lampert predicts the strategy will drive up sales per square foot, and with new tenants in the unused spaces, draw more foot traffic. Lampert also told shareholders the company will likely close an undisclosed number of stores this year.
In 2014, Sears Holdings closed 234 Sears and Kmart stores.