Sears Holdings logs another quarterly slump
Retail Editor 1 -- Home Textiles Today, November 21, 2013
Hoffman Estates, Ill. - On the one hand, Sears Holdings' effort to transform its business from a chain retailer to a membership retail format is gaining traction: 70% of sales in the third quarter were made by Shop Your Way members, up from 65% the previous quarter.
On the other hand, it clearly needs more members. Sales continued to decline and the company's loss widened to $534 million from a loss of $498 million in the year-ago period.
Overall sales dropped 7% to $8.27 billion. The company attributed $200 million of the decline to the fact that it operates fewer Kmart and Sears U.S. stores than it did in last year's third quarter.
Consolidated comp decreased 3.1%, with same-store sales down 4% at Sears and 2.1% at Kmart.
"We are transitioning from a business that has historically focused on running a store network into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, in home or through digital devices," said Eddie Lampert, Sears Holdings' Chairman and ceo. "Throughout this transition, we have continued with traditional promotional programs and marketing expenditures while investing in our member-centric model, which has impacted our margin and expenses."
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