KMART Holiday sales to be key in decisions on stores
The company filed for Chapter 11 in January.
DETROIT (AP) -- With deep discounts and round-the-clock hours, troubled Kmart is courting last-minute holiday gift buyers as it prepares another round of closings that could be influenced by which stores draw more shoppers.
The retailer, which is operating under Chapter 11 bankruptcy protection, starts its nonstop shopping promotion today, which it also did last year. Stores will be open continuously from 6 a.m. today until 8 p.m. Christmas Eve.
Among the bargains: 70 percent off on jewelry and other price cuts on key items such as toys and electronics, said spokesman Dave Karraker.
The strategy is meant to walk a fine line between maintaining profit margins and enticing customers, he said.
Company's troubles
Kmart filed for Chapter 11 on Jan. 22, following a stock dive and disappointing 2001 holiday sales.
Chairman and chief executive James Adamson has said this year's holiday season will not make or break Kmart.
However, it will figure into another round of store closings to be announced in January. The company has already closed 283 stores, affecting 22,000 jobs, but will not say how many more will be shuttered.
Holiday sales is "one of many factors that would be weighted equally" in store-closing decisions, said spokesman Jack Ferry. Other factors include lease costs and placement near discount competitors such as Wal-Mart Stores Inc. and Target Corp.
But Jordan Kaplan, professor of managerial science at Long Island University in New York, said "it could not possibly be equal."
"The holiday season should be a clear financial indication of which stores are profitable and therefore viable for Kmart," he said.
Company officials haven't disclosed how holiday sales are faring.