Kmart and Sears merging to become third-largest retailer in U.S.(Newsmakers: reporting on the industry)(Kmart Holding Corp. and Sears, Roebuck and Co. to form Sears Holdings Corp.)

Do-It-Yourself Retailing, January, 2005

Kmart Holding Corp. and Sears, Roebuck and Co. announced Nov. 17 that they have signed a definitive merger agreement that will combine Sears and Kmart into a major new retail company named Sears Holdings Corp. Sears Holdings will be the nation's third largest retailer, with approximately $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores.

Both Sears and Kmart had been struggling in the marketplace. Kmart emerged from Chapter 11 bankruptcy in May 2003 after closing 323 stores. Sears reported a net loss of $61 million for the third quarter, along with a comparable-store sales decline of 4 percent. With Kmart looking to shed store sites and Sears looking for locations for its new Sears Grand format, the two...

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