Debt-ridden retail giant Kmart Corp on Monday reaffirmed its plans to emerge from Chapter 11 bankruptcy protection next year despite a sharp slide in September same-store sales and a weak economy.

The Michigan-based company posted a 6.9 per cent year-on-year slump in monthly same-store sales and a loss of $176 million but said early indications for October same-store sales were positive.

Kmart's chief operating officer, Julian Day, said the firm, which filed for Chapter 11 in Janaury, "continues to expect an improvement in same-store sales trends over the next months".