Troubled retail giant Kmart Corp saw its woes continue shortly before Christmas when it posted a third quarter loss of $383 million, or 76 cents per share, compared with a restated loss of $249m, or 50 cents per share, in the year-ago period.

The Michigan based company said its net sales for the quarter fell to $6.73 billion from $8.02bn in 2001 while same-store sales plunged 7.6 per cent.

Excluding non-comparable items, discontinued operations and reorganisation items, Kmart’s net loss was $390m, or 78 cents per share, versus a net loss of $152m, or 31 cents per share, in the same quarter of last year.

Kmart president and COO Julian Day said the operator of around 1,800 outlets was reviewing its store base and would decide which would be axed as part of its restructuring "once we're able to take stock of holiday performance".