Sears could close more stores in effort to cut $1 billion

CHICAGO - Sears Holdings Corp. aims to slash costs by at least $1 billion this year as part of a new restructuring plan that calls for cuts to corporate overhead and could include more store closures.

The department store chain, headquartered in suburban Chicago, already has sold off assets to bolster its ailing Sears and Kmart businesses.

Sears previously announced plans to close 150 stores by spring, but the company said in a news release Friday that it would 'actively manage our real estate portfolio to identify additional opportunities for reconfiguration and reduction of capital operations.”

Sears' plan also calls for consolidating Sears and Kmart corporate and support operations. A team is designing a new organizational model, which may include job cuts, Sears spokesman Howard Riefs said.

'These decisions are never taken lightly, but they are a necessary part of our efforts to become a more competitive retailer and to return our company to profitability,” he said.

Riefs said Sears also intends to improve its selection of merchandise, studying data on its sales and best customers in its membership program to identify unprofitable product categories that could be cut to allow the company to focus on categories where it wants to grow, including home appliances and home services.