KMART TO CLOSE: Community, mayor reacts to news
Published 6:45 am Saturday, July 8, 2017
- Customers approach the entrance of the Athens Kmart Friday. Sears Holdings Inc. announced Friday the store would close in October, with liquidation sales beginning this month.
By the time October arrives, there will be no more “Blue Light Specials” at the Athens Kmart.
Sears Holdings Inc. announced Friday the Athens location is one of two unprofitable stores in the state targeted to close. The other store is on McFarland Boulevard in Tuscaloosa.
A release from the company said employees at 35 Kmart stores and eight Sears stores were notified the locations would close in early October. The release said liquidation sales would begin as early as July 13 at all affected locations.
Employees impacted by the closures will receive severance and have the opportunity to apply for open positions at other Kmart or Sears stores.
The news was met with a mix of sadness, shock and apathy from some in the community. Some of those who commented on The News Courier’s Facebook page were not surprised by the announcement.
“Can’t believe it hung on as long as it did, especially with Walmart down the road,” said one comment. Other readers were excited by the prospect of upcoming sales.
Mark Hagood, a former employee, said he enjoyed working at the Athens Kmart. It was his first job, and also the one he returned to after serving overseas in the National Guard.
“ … Everybody that worked there made the job fun and worth it,” he said. “We were more of a family than co-workers. It’s been 6 years since I left and I still miss the fun work environment we had and the crazy shenanigans we got into.”
Rationale behind move
In a blog post, Sears Chief Executive Officer Eddie Lampert attributed the company’s decision to “changes in customer behavior.” He explained efforts are being made to transform the company’s business model so physical stores and digital capabilities “match the needs” of customers.
“This is part of a strategy both to address losses from unprofitable stores and to reduce the square footage of other stores because many of them are simply too big for our current needs,” he said. “Having the right formats and right sized stores will help us put Sears Holdings in a better position to meet the realities of the changing retail world.”
Sears stock fell 3 percent Friday after the announcement of the store closings.
Athens Mayor Ronnie Marks said he was disappointed by Friday’s news, but added it wasn’t entirely surprising. Sears Holdings had already announced the closure of more than 250 stores in an attempt to avoid bankruptcy.
“I had met with the manager over the past year or so and I hoped we would be safe,” Marks said. “It’s big business and (Sears) made a corporate decision. I regret it for the employees and for the community.”
Marks said he shopped at the store at least twice a week. As far as retail goes, Kmart was — at one time — second only to Walmart in Athens. Dollar General, however, has become a larger presence in Limestone County. As of Friday, there were 16 Dollar Generals in Limestone County.
The mayor didn’t know how the loss of Kmart could affect the city’s tax revenue, but added he and City Clerk Annette Barnes would take it into consideration when preparing the next budget.
“We’ll try to project (shoppers) will go somewhere else local,” he said.
Just as important to Marks is what will happen to the tract at 104 U.S. 31. The tract is located in what Marks believes will be a booming part of the city in the near future. The property is just north of a busy retail corner that contains Walgreens and McDonald’s and just south of the new Athens High School, currently under construction.
“I hope it won’t be vacant too long,” Marks said.