Blog: US No 3 – a high risk?
Leonie Barrie | 18 November 2004
The $11 billion deal between Kmart and Sears sounds impressive, but will the combination of struggling discounter and struggling department store work? The new Sears Holdings Corp will be US’s third largest retailer, but both the Kmart and Sears chains will remain in one form or another. Retailing experts agree that both Kmart and Sears need a long-term strategy for turnaround, including a more aggressive off mall stance and cross selling of the brands. But the promise of up to $500 million a year in savings within three years from store conversions, back-office job cuts, more efficient buying of goods and possible store closings will surely appeal to the financial markets.
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