Also, some 1970s photos of Cloverleaf Mall.

(Reuters) – Sears Holdings Corp will close as many as 120 of its Kmart and namesake big-box stores after sales during the peak holiday period fell sharply, and the retailer also forecast that fourth quarter earnings would fall by more than half, sending its shares plunging some 25 percent.

Adding to the share selloff, Sears also disclosed on Tuesday that it has tapped its credit facility to borrow cash.

Once one of the leading retailers with a national reach through its popular catalog along with hundreds of stores, Sears has been pressured in recent years by competitors ranging from Wal-Mart Stores to Amazon.com.

Under the stewardship of Chairman Edward Lampert, the company has let stores deteriorate, while analysts also cite poor locations and ho-hum merchandise for its ongoing decline.

“They’ve neglected this business for so long,” independent retail analyst Brian Sozzi said, noting that he expects many more closings. “They are letting Kmart and Sears die on the vine.”

Sales at Sears Holdings have fallen each year since 2005, when it was formed in a merger of Sears and Kmart.

So far this holiday buying season, the drop has continued.

Same-store sales at Kmart were down 4.4 percent in the eight weeks that ended Christmas Day, and down 6 percent at Sears’ U.S. stores. Overall, they were down 5.2 percent.

The closings follow its announcement last quarter it would shut 10 stores. Kmart and Sears have a combined 2,177 big-box locations.

A list of stores affected will be available at www.searsmedia.com once the retailer decides on the locations.

The declines at Kmart were led by drops in electronics and clothing sales as the low-price chain faced stiff competition from Wal-Mart, which resumed its layaway program this holiday season after five years.

Sears blamed poor consumer electronics sales in a tough economic environment “especially for big-ticket items” for more than half of the decline in its namesake chain’s domestic same-store sales.

Two weeks ago, Best Buy Co Inc said that offering bigger discounts to kick-start the holiday season ate into its profits.

Sears’ shares were down $11.46, or 25 percent, at $34.40 in early afternoon trading, and have fallen 63.1 percent since hitting a yearly high in February.

At the current stock price, Sears Holdings — home to brands including Craftsman tools and Kenmore appliances — has a value of $3.7 billion, compared with the $11 billion Lampert agreed to pay for the company in 2004. As of September 30, his holding company owned 45.1 percent of Sears Holdings.

The drop in shares is also a big blow for fund manager Bruce Berkowitz’s Fairholme Capital, Sears’ second-biggest shareholder with 15.2 percent of shares.

Sears’ travails also hit shares of Whirlpool Corp, which last year got 8 percent of sales through the retailer. Whirlpool shares fell 7.1 percent to $47.56.

FALLING FURTHER BEHIND

Normally, Sears would give “marginally performing” stores time to improve, but “we no longer believe that to be the appropriate action in this environment.”

Sozzi, the analyst, went to a Sears in Bayshore, New York, on Monday, one of the busiest days of the retail season, and said it was “deserted.” At the northern end of the state, in Plattsburgh, a Sears was similarly quiet.

Wall Street analysts have long faulted Sears for letting its stores become stale, even as rivals ranging from Macy’s Inc, J.C. Penney Co Inc to Target Corp and Wal-Mart remodel and refresh their stores, drawing in customers.

Last fiscal year, Macy’s spent $505 million to improve its namesake and Bloomingdale’s stores, while Sears spent $441 million despite having more than three times as many stores.

Sears is “effectively asking customers to pay for a poorer shopping environment” than other chains, Credit Suisse analyst Gary Balter said in a note to clients.

Balter was also surprised that Sears would borrow money during the holidays, which are typically a peak cash flow period. Sears had $483 million of borrowings outstanding as of December 23, compared with zero a year earlier.

As of October 29, Sears had cash and cash equivalents of $624 million, down from $790 million.

Sears Holdings said the lower sales and margin pressure would lead to adjusted fourth-quarter earnings before interest, debt and amortization of less than half of the year-ago quarter’s $933 million figure.

Last month, Sears reported a much wider-than-expected quarterly loss as higher markdowns and pricing pressures in appliances squeezed margins.

The retailer expects to earn $140 million to $170 million by selling of inventory in affected stores and selling or subleasing store space.

Sears also expects to record a non-cash charge of $1.6 billion to $1.8 billion in the fourth quarter related to a valuation allowance on certain deferred tax assets.

Image from The Daily Press, the weekend Coliseum Mall shut down in 2007.

Interior entrance, 11-14-1991, the day Thalhimers announced Hechts was taking over:

(picture I took circa Summer of 2005)

Shopping bag my parents had stashed in their Christmas decorations, possibly older than I am, from the early 1980s maybe:

Thalhimers Commercials:

Thalhimers 1-day Christmas sale Commercial 1986 — I like that they showed Snowbear at the end, not once, not twice, but three times.

Commercials 1986: Part 13 – 2 commercials in this break.

Basically, just adding this commercial because of the Ames illustration at the end:

I looked up where this Zayre was in this commercial, and looks like a  Jewel has taken its place.

Obviously Kmart is still stuck in 1991

…and in 1997.

X-Entertainment | Recreating McDonald’s Holiday Chicken McNuggets from 1987..

Total memory seizure looking at this catalog. I’m 15 years old all over again.

No I remember the first time I had them was at Chesapeake Square Mall in 1997 on the insistence of my niece and nephew who had tried them a few weeks earlier. Then after that, they became increasingly harder to find, I think Patrick Henry Mall in Newport News had a booth for a long time, but its been gone for a while too.

This building is so scary looking. From research, this used to be a Penneys.

This was a Sears. Classy looking Sears.

You’re probably wondering about the big hole. It’s because of this ceremony last week that was supposed to be the beginning of Kroger, and the end of the mall or something. I have the news coverage on DVD, I just need to rip it to my computer and put it on YouTube.

Also, note the abandoned Pearson Honda dealership across the street. If a Honda dealership can’t do well in this neighborhood…

Scary building is scary.

Was the building to the right the mall, or another anchor store I missed?

It’s really odd, this mall looks like it got a renovation maybe in the early 2000s? I’m only judging by the fonts used for the Cloverleaf Mall sign, and for the Food Court.

External Links:
Labelscar entry — apparently I missed taking a pic of the former Thalhimers that was way in the back of the mall.

Interior Pics taken by Flickr user aynebalesphotography

Exterior pics taken by the same Flickr user