Despite rumours and news reports early in the week saying stores in Canada were on the brink of being closed, Sears admits they're having some problems but local stores are safe.

Slow holiday sales and declining profit margins have forced those in charge of Sears and Kmart stores to re-think the way they do business. With the new figures in hand, they announced 120 stores will be closing over the course of the next year.

The news had shoppers wondering if their local outlet would be on the chopping block but Sears Canada says that the closures should have no affect on any stores north of the US border. Sears has more than 4000 stores across Canada and the United States.