Sears Holdings Corp.

Sears to close 50 auto centers, 92 Kmart pharmacies to cut costs

Sears Holdings plans to close scores of Sears Auto Center locations and underperforming Kmart pharmacies as part of its effort to cut costs by $1.25 billion this year.

The Hoffman Estates-based retailer already has closed 150 stores nationally — including two in downstate Illinois — in cost-cutting efforts, but more needs to be done in this "very challenging retail environment," Chairman and CEO Edward Lampert said Friday in a news release.

"We need to take further action," he said.

The closures and other steps the company already has taken add up to $700 million in annual savings. Closing 50 Sears Auto Center locations and 92 pharmacy operations in...