A longtime landmark within one of Canada's most profitable shopping centres is set to close.
Sears Rideau Centre is one of three stores in major cities across the country that will have its lease sold back to the landlord in order to revamp struggling operations. The closures will save the company $170 million.
The retailer says locations in Vancouver and Calgary will also shut its doors by the end of October.
Sears Holding Corp announced late December it would close as many as 120 of its Kmart and Sears discount and department stores after holiday sales slumped continent-wide.
Friday's announcement is further evidence the company is struggling to rival companies like Wal-Mart. And soon it would find itself battling retailer Target as it plans to take over some of the Zellers locations in Ottawa.
Last month, the company announced plans to cut roughly 400 jobs across Canada as it closed nearly all of its in-store cafes.
Seventy employees were laid off from the Sears Canada head office last year.
The closure may not come as a surprise to some retail analysts who pointed to Rideau Centre as one of the most valuable shopping centre properties nationwide.
Rideau Centre makes more money per square foot than any other shopping property in Canada. It means the lease is expensive and Sears Canada will be saving a lot of money by closing this location.
It is not yet known how staff will be affected by the closures.
With files from the Canadian Press
