Sears is implementing an integrated model to enhance their efficiencies in pricing, sourcing, supply chain and inventory management.
No new store closures were announced today, but Sears says it may sell some real estate.
Sears also said it has amended an existing deal with creditors that will allow it to borrow $140 million more, giving the company more breathing room and help as its closes stores and improves its online operations.
Sears Holdings Corp (NASDAQ:SHLD) has been teetering on the edge of bankruptcy for years, but a new restructuring plan was enough to make investors giddy.
From November to January, which includes the holiday shopping season, Sears expects sales to have fallen 10.3 percent at its established stores.
On Friday, shares of struggling retailer Sears Holdings are skyrocketing, up around 32% to $7.33 per share in morning trading-and up almost 44% in premarket trading-after the company announced a plan to cut costs by at least $1 billion in 2017.
Target at least $1.0 billion in annualized cost savings through restructuring and streamlining operations.
The company may also sell its Kenmore washer and dryers and DieHard auto battery brands, after striking a deal to sell their Craftsman Tools product line last month.
At time of writing this, Sears shares are trading higher by 39 percent. Sears amendments of their asset-based credit facility would boost their liquidity and financial flexibility.
Lampert's latest plan to restart the growth engines on the foundering Sears and Kmart ships includes further cutting debt and pension costs by $1.5 billion and cutting costs by $1 billion.
For the fourth quarter, revenue plunged 16% to $6.1 billion and net losses widened by up to $635 million from $580 million in the period a year ago, the company said, citing preliminary results. "Furthermore, we intend to use net proceeds from our announced Craftsman and real estate transactions, as well as from improvements in the operating performance of the company, to meaningfully reduce our outstanding obligations and their associated expenses".