HOFFMAN ESTATES, Ill. — Kmart's same-store sales have taken a tumble this quarter as its parent company says it is continuing to focus on transforming itself into a retailer focused on members of its loyalty card program.
Sears Holdings said that comps at Kmart fell by 5.7% during the nine-week period that ended Monday, while year-to-date comps as the mass merchandise retailer declined by 3.7%. Meanwhile, Sears U.S. stores had comp declines of 9.2% and 4.2% during the same period, for total declines in both chains of 7.4% and 3.9%. Sears' Canadian stores reported a quarter-to-date 4.4% decline in comps. Adjusted EBITDA for the fourth quarter is expected to be between negative $65 million and $65 million, compared with $429 million in the fourth quarter last year, while the company expects to have a quarterly loss of $250 million to $360 million, and a fiscal 2013 loss of $811-914 million. The company's fourth quarter 2013 ends on Feb. 1.
The company said it was making progress toward becoming a "member-centric integrated retailer" through the Shop Your Way loyalty program, with 69% of sales during the quarter so far coming from members, compared with 58% during the same period last year.