When he received a call Thursday, the last thing he expected was the news that his Sears Canada store would be closing in St. Albert.
Now left with a two-year lease on his store, Shawn Nawaz is anxious for the future. He has four employees at the store on Inglewood Drive.
“It’s tough. It’s just a shock, I thought we were secure here in St. Albert,” he says.
Sears Canada announced this week that it plans to cut 2,900 positions across Canada and close 59 locations as part of its restructuring plan. On Thursday, Sears announced it is seeking protection from its creditors.
“I don’t know what to do. I’ve been with this company for so long, it’s a tough one,” Nawaz said.
Nawaz was surprised to find out his store was targeted for closure. He says he knew that Sears Canada was planning to close some locations, but felt his store was safe.
Lynn Stothert, 66, is a long-time resident in St. Albert and said she is sad to see the business go. She just completed a full order of appliances for her home.
“I’m not impressed. We like to participate in shop and play and live here, so we’re not happy,” she says.
She says over the years she would only go through Nawaz to replace appliances in her home.
“I’ve always had great experiences here, I’m hoping I don’t need appliances again. Shawn has always been great with everything,” she says.
The Sears Canada store has been open in St. Albert since 1997. Nawaz has owned the store for the past decade.
Nawaz says he did get some clues that closure could eventually come. Since the Sears Canada catalogue went online last year, he saw customer visits drop from around 96 people to about 20 people each day.
His main concern now is what’s going happen next. Nawaz says he will provide a severance package to each of his four employees, but he’s unsure whether Sears Canada will provide any financial compensation to him.
“I hope they still protect us and take care of us,” he says. “Otherwise I don’t know what we’re going to do. My lease is still for another two years and I still have to pay the bills.”
A spokesperson for Sears Canada couldn’t comment on whether the dealers would receive any compensation for the closure of their stores.
While the news was shocking for him, Nawaz says he plans to turn the store into his own independently run appliance and furniture business.
Jennifer McCurdy, president and CEO of the St. Albert and District Chamber of Commerce, says she’s sad to see the business go.
“It’s disappointing for the community, they have been in St. Albert for a long time. I know that many people have relied on them over the years,” she says.
She says it’s hard to keep up when competitors Wal-Mart and Costco are right around the corner. She adds that buying patterns have changed and people are starting to go online to order what they need.
Nawaz is unsure when the store will close. Customers will start seeing liquidation sales posted at the business.
He also owns a Sears Canada store in Leduc with one employee. He says plans were already underway to close that location in July.
