That's a big round of layoffs
Sears Canada has been working to restructure as the trouble mounted over the past few weeks but a management-led restructuring failed and today the company announced it will close its nearly 200 stores and lay off 14,000 workers.
A few takeaways:
- That's a big hit to Canadian employment, equivalent to a month of job gains. Mitigating that somewhat is that they're mostly part-time and low wage jobs.
- The company will liquidate inventory through the holiday season. That will mean huge discounts and disinflationary pressure on Canadian retail sales.
- The stores have a very large footprint and it's highly unclear who will fill the empty spaces; something that could pressure broader retail lease rates
- This is part of a broader trend in Canada and globally as retail is upended by the internet.