Downbeat start for US retail giant
Sears Holdings posts first quarter loss
Sears Holdings, the US retail group formed by the merger of Sears and Kmart, has started on a low note by reporting a loss in its first quarter.
The group, which is the third largest retailer in the US with around 3,500 stores, reported a loss of $9m in the 13 weeks to April 30 on sales of $7.63bn.
The company blamed costs associated with the merger, as well as lower sales in a sluggish US market, for the loss.
[img r]searskmart.jpg[/img]Sears Holdings has launched a major store revamp programme, with new store formats such as Sears Grand and Sears Essentials which take some design cues from the more open retail space seen in discount stores.
Chairman Edward Lampert said the group would take action to control costs, but also pledged to “opportunistically pursue” acquisitions, joint ventures and strategic alliances. The group already operates more than 300 stores in Canada through a joint venture.
