Kmart’s doors closing soon
Local city and county officials, as well as Red Oak residents, have been reacting to a surprise announcement on Jan. 4.
The announcement was from Sears Holdings, Inc., regarding the closure of Sears and Kmart stores across the United States, including Red Oak’s location at 2501 N. Broadway. The announcement caught Red Oak, and the surrounding community, off-guard.
Sears Holdings issued a press release on the closures, which stated:
“Sears Holdings continues its strategic assessment of the productivity of our Kmart and Sears store base and will continue to right size our store footprint in number and size. In the process, as previously announced we will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members. The company on Thursday, Jan. 4 informed associates at 64 Kmart stores and 39 Sears stores that we will be closing these stores between early March and early April 2018.”
The release went on to say: “Eligible associates impacted by these store closures will receive severance and will have the opportunity to apply for open positions at area Kmart or Sears stores. Customers can use the store locator function on our web sites to find the location of their nearest Kmart and Sears stores. Liquidation sales will begin as early as Jan. 12 at these closing stores.”
Red Oak Mayor Bill Billings said news of the closure caught Billings and the rest of the community by surprise, and it was a tough loss for the community.
“It’s a destination store. It brought people to town because it was a convenience, much like people travel to the Wal-Marts in Atlantic and Shenandoah. It brought people to town to shop, and the loss will be painful,” Billings said.
The Sears Holding release cited the closures of stores that the company deemed unprofitable. Billings, who said he has built a livelihood in helping people develop retail, internet, and manufacturing businesses, felt if they had adapted their business model for the Red Oak location, it would have boosted sales.
“If they had combined various models within their structure, such as this year’s hometown model with appliances, lawn and garden, tools, and the kinds of things they offer through those locations and franchises with their Kmarts in small-market areas, I think it would have made a big difference,” commented Billings.
Years ago, when Shopko purchased Pamida and intended to close the Red Oak store rather than open a Shopko location in the community, the community rallied to bring a Shopko to the city, and they were able to convince the company to open a Shopko location. Billings said he is doing what he can to try to change the minds of Sears Holding on closing Red Oak’s Kmart, but so far, no progress has been made.
“I’ve reached out to them but have gotten no response at this point. MCDC director Shawnna Silvius is also doing what she can do. But it’s not the same situation as it was with Shopko. Pamida had one different business model, and Shopko had different models. I don’t see Kmart changing their business model to be any more productive in the future, even if we were able to convince them to stay here. I think we’re fighting an uphill battle for sure,” said Billings.
Billings added he’s seen reports of Macy’s laying off employees, and retail stocks dropping while internet stocks climb. As people continue to shop on the internet, Billings feels the trend will continue.
“Our goal for Red Oak, which is has been since I was elected mayor, is to strengthen our downtown with shops and restaraunts and the things you have to have, such as hardware and gifts for other people, and needed items. The items people simply want are going to continue to be purchased online, or purchased in the big city,” Billings said. “Unfortunately, it looks like the future of Red Oak is to be a bedroom community with the necessities being covered from a retail standpoint, and the extras growing on the internet and the more suburban and urban population centers. When the put in the stores in Lake Manawa, it made it very convenient for people in Red Oak and even further away than Red Oak to get in their cars and go shopping.”
Billings said he feels the pain of those employees in Kmart facing the loss of their jobs.
“I feel the hurt of those employees, and I feel for their families. We’re looking at ways to help those employees find other jobs in the community or employment elsewhere,” Billings stated.
Montgomery County Development Corporation director Shawnna Silvius said she was also shocked to hear of the store’s closure.
“It’s a terrible thing, and since the announcement came, I’ve been working to connect with Iowa Workforce Development’s Rapid Response program to see what they can do to help the employees of the store,” said Silvius.
According to Silvius, she is also looking for ways to see if the decision of Sears Holdings can be reversed.
“I’ve been conversing with Mayor Billings, and we are working to learn and see if there are any opportunities for us to change their decision, and we’ll do everything we can in regards to that, and do everything we can to help the workers that are or will be displaced as Kmart liquidates their merchandise. We want to connect workers with options as appropriate with Kmart’s timeline. Unfortunately, that timeline is not something we know specifically either,” Silvius advised.
Silvius is also contacting local employers who are looking for good workers, and she is looking for ways to connect the displaced Kmart employees with those available jobs.
“This is an immediate focus. It’s a terrible thing for the families involved. I’m sure that our employers that are hiring will start doing what they can to promote the positions they have. The key is trying to get those people employed as quickly as they can if indeed there is no other option for keeping that store here,” said Silvius.
Any employers who are interested in placing the workers or who are looking for employees are encouraged to contact Silvius at 357-1122.
“They can certainly contact me and let me know. Something we could potentially do is host a job fair with our local employers hosting a booth and having applications available,” Silvius said.
Additionally, Silvius said it is too early to speculate what will or can be done with regard to the property. be that recruiting a new business or expanding a current or future business into it. Silvius said officials are making the contacts needed to be proactive.
The Red Oak Express reached out to Sears Holdings’ media relations department but received no response regarding the closures.
In the wake of the announcement, numerous Red Oak residents took to social media to weigh-in on the news:
Jon Forward: “Very sad when Red Oak loses a big retailer. Another nail in the coffin.”
Alana Brace: “Makes me said, and I don’t live in Red Oak any longer.”
Lois Darrington: “Sorry to see Big K go. I shopped there when I came to visit. Great place.”
John Murren II: I spent the first dollar I ever earned at that Kmart back in 1993.”
Cindy Myers Rolenc: “Hate to see this store close.”
Brittany Murphy: “It sucks. People are losing their jobs. But it’s hard to compete with Amazon and Walmart.”