Sears Canada Inc. (TSE:SCC), the embattled department-store chain, will receive $191 million for vacating stores at two major Toronto-area shopping centres by next March.
The two Sears store locations are at Yorkdale Shopping Centre in Toronto and at Square One Shopping Centre in Mississauga, the Toronto, Ontario-based company said in a statement on Friday. The transactions will close on June 24.
The company will also receive $1 million on June 24 for granting its landlords the option to make a similar transaction for a third major store located at Scarborough Town Centre within five years at a fixed cost of $53 million.
Sears has sold stores and spun off smaller-format locations since last year to generate cash as it capitalizes on the customer rewards program that represents more than half of Sears’s revenue. The company reported a C$279 million loss in the first quarter.
"While opportunities like this are presented to us occasionally, our primary focus of creating long-term value for the company is best approached by implementing our three-year transformation," Chief Executive Officer Calvin McDonald said in the statement.
"Over the past year we have undertaken numerous actions to get the basics right, and have worked to transformSears Canada into a retailer that can run effectively, efficiently and sustainably," he added.
The retail sector in Canada has seen intense and growing competition with the arrival of U.S. heavyweights. Target Corp. (NYSE:TGT), the second-largest U.S. discount retailer, started to open its first stores in Canada in March, and Nordstrom Inc. (NYSE:JWN), the Seattle, Washington based retailer which has more than 100 namesake stores, will launch in Canada next year.
Sears Canada shares have lost approximately 11 percent over the past 12 months, giving the company a market value of C$962.7 million. This compared with a gain of 7 percent for the benchmark S&P/TSX Composite index (TSE:OSPTX). The shares closed 0.1 percent up at C$9.45 at the market close on Thursday.
Sears has operated in Yorkdale Shopping Centre and Scarborough Town Centre since 1991 and at Square One Shopping Centre since 1973.
As of May 17, Sears Canada operated 181 corporate stores and 248 hometown stores. Reported by Proactive Investors 22 hours ago.
The two Sears store locations are at Yorkdale Shopping Centre in Toronto and at Square One Shopping Centre in Mississauga, the Toronto, Ontario-based company said in a statement on Friday. The transactions will close on June 24.
The company will also receive $1 million on June 24 for granting its landlords the option to make a similar transaction for a third major store located at Scarborough Town Centre within five years at a fixed cost of $53 million.
Sears has sold stores and spun off smaller-format locations since last year to generate cash as it capitalizes on the customer rewards program that represents more than half of Sears’s revenue. The company reported a C$279 million loss in the first quarter.
"While opportunities like this are presented to us occasionally, our primary focus of creating long-term value for the company is best approached by implementing our three-year transformation," Chief Executive Officer Calvin McDonald said in the statement.
"Over the past year we have undertaken numerous actions to get the basics right, and have worked to transformSears Canada into a retailer that can run effectively, efficiently and sustainably," he added.
The retail sector in Canada has seen intense and growing competition with the arrival of U.S. heavyweights. Target Corp. (NYSE:TGT), the second-largest U.S. discount retailer, started to open its first stores in Canada in March, and Nordstrom Inc. (NYSE:JWN), the Seattle, Washington based retailer which has more than 100 namesake stores, will launch in Canada next year.
Sears Canada shares have lost approximately 11 percent over the past 12 months, giving the company a market value of C$962.7 million. This compared with a gain of 7 percent for the benchmark S&P/TSX Composite index (TSE:OSPTX). The shares closed 0.1 percent up at C$9.45 at the market close on Thursday.
Sears has operated in Yorkdale Shopping Centre and Scarborough Town Centre since 1991 and at Square One Shopping Centre since 1973.
As of May 17, Sears Canada operated 181 corporate stores and 248 hometown stores. Reported by Proactive Investors 22 hours ago.