Boardman Kmart to close after nearly 48 years in business

By Kalea Hall

khall@vindy.com

BOARDMAN

Nearly 48 years after it opened in June 1968, the Boardman Kmart store will close in mid-April, part of an effort to reduce its parent company’s expenses.

The store, located at 1209 Boardman-Poland Road (U.S. Route 224), has 81 employees who will be eligible to receive severance pay and have the opportunity to apply for open positions at area Sears and Kmart stores.

The store will begin its liquidation sale Jan. 24.

“Store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base and accelerate the transformation of our business model,” said Howard Riefs, director of corporate communications for Sears Holdings Corp. “These actions will better enable us to focus our investments on serving our customers and members through integrated retail – at the store, online and in the home.”

Customers with layaway contracts at the store have a couple of options: Pay off the contract early or transfer their layaway contract to a neighboring store or online.

In its latest earnings report for the third quarter of 2015, Sears Holdings, parent company of Kmart, reported a net loss of $454 million compared with a net loss of $548 million in the third quarter of 2014.

The company also reported a revenue decrease of about $1.5 billion to $5.8 billion for the third quarter ending Oct. 31, 2015, compared with revenues of $7.2 billion for the third quarter of 2014.

Specifically, Kmart saw increases in sales of home appliances and mattresses, but those were offset by declines in sales of apparel, consumer electronics, groceries and household and drugstore items.

Locally, there are two other Kmart locations open: 4475 Mahoning Ave. in Austintown and 2485 Parkman Road NW in Warren.

Those stores will remain open, Riefs said.

United Autoworkers Local 1112 represents about 200 workers at the Kmart Distribution Center in Bazetta Township. Glenn Johnson, union president, said he hopes the closure isn’t a precursor for more.

“As of right now they have plenty of work, but anytime there’s a store closing it impacts it at some level,” Johnson said.

The distribution center’s work includes much of the Midwest.

“We have a very huge footprint,” Johnson said.

Kmart leases the property on Route 224. The property owner is ASI Family Partnership LLC.

“This just happened all of a sudden,” said Anthony Schiavone, former president of the company, which his family still runs. “We didn’t expect this to happen because they still have some time on the lease. My concern is for the people who are going to lose their jobs.”

Schiavone says the space is a prime location and the company has the contacts to fill the lease.

“We are highly optimistic about the property,” he said.