From Home Furnishing Business
Sears Canada to Close Toronto Flagship Store
Sears Canada is closing five of its stores, including its Toronto flagship, as part of a $400-million deal. The retailer plans to sell leases of the five stores to a mall operator.
Sears Canada is closing five of its department stores, including its flagship location in Toronto's Eaton Centre, as part of a $400-million deal.
Sears plans to sell the leases of those five stores to mall operator Cadillac Fairview, in what would be the biggest sale since the retailer began shedding assets and cutting jobs in an effort to turn around its struggling operations.
The planned closure of the Eaton Centre location, by 2014, is notable as it is considered the company's flagship store and is in a central tourist area. The company's head offices are located above the store, and will remain there for now.
Despite the Eaton Centre being a high-traffic location, Sears has struggled to capitalize on the location since moving there in 2000.
"In this day and age, any retailer has to have a vision for what their business is all about," says Elizabeth Evans, associate dean at the Ted Rogers School of Management at Ryerson University.
"Over the last several years, it's pretty clear that they haven't had that solid vision that they could take to market."
About 965 employees will be affected by the closure of the five locations, although Sears Canada says they will have the option to apply for other jobs within the company.
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