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The result of this merger is the creation of the third largest retailer in the USA
Kmart Holding Corporation and Sears, Roebuck and Co. have announced that they are to merge in a process that should be completed by the end of March 2005. An agreement to this effect has already been signed. The new company, to be known as Sears Holding Corporation, will be the third largest retailer in the USA after Wal-Mart and Home Depot, with 3 450 outlets and annual revenues of approximately US $ 55 bn (€ 42 bn).
Kmart has been under pressure for quite some time. In January 2003 the company filed for protection under Chapter 11 to ward off the threat of bankruptcy. It reported sales down by 23 per cent to US $ 17.072 bn (€ 13.171 bn) in the short 2003 financial year of 39 weeks. So far the 2004 financial year has not brought about any turnaround: sales declined by 25.3 per cent in the first quarter over the same period last year, by 15.3 per cent in the second and 13.7 per cent in the third.
Sales are also falling off at Sears. The 2003 financial year closed with a sales loss of 0.6 per cent to US $ 41.124 bn (€ 31.728 bn) and revenue also remained below the previous year’s results in the first three quarters of 2004 (-15.3 per cent, -13.9 per cent and –11.4 per cent).
A behind-the-scenes analysis of what the merger might mean, can be found under the Trade Topics heading at DIYglobal plus (v. Other Articles on this Topic as well).
Kmart has been under pressure for quite some time. In January 2003 the company filed for protection under Chapter 11 to ward off the threat of bankruptcy. It reported sales down by 23 per cent to US $ 17.072 bn (€ 13.171 bn) in the short 2003 financial year of 39 weeks. So far the 2004 financial year has not brought about any turnaround: sales declined by 25.3 per cent in the first quarter over the same period last year, by 15.3 per cent in the second and 13.7 per cent in the third.
Sales are also falling off at Sears. The 2003 financial year closed with a sales loss of 0.6 per cent to US $ 41.124 bn (€ 31.728 bn) and revenue also remained below the previous year’s results in the first three quarters of 2004 (-15.3 per cent, -13.9 per cent and –11.4 per cent).
A behind-the-scenes analysis of what the merger might mean, can be found under the Trade Topics heading at DIYglobal plus (v. Other Articles on this Topic as well).
