Sears 4Q loss narrows, sales slide as business shifts

NEW YORK (AP) — Sears recorded its fourth straight year of falling profit and revenue, even as cost cutting and store closures helped narrow its loss for the fourth quarter.

The Hoffman Estates, Illinois-based company, which runs Kmart and its namesake stores, has been closing stores, selling assets and slashing inventory as it continues with efforts to turn around its business. But the retailer and its CEO and chairman, Edward Lampert, still face challenges.

Lampert, a billionaire hedge fund manager, combined Sears and Kmart in 2005, about two years after he helped bring Kmart out of bankruptcy. But the retail landscape has undergone seismic shifts in recent years and the tie-up hasn’t gelled.

To try to get back on track, Sears has shifted its focus from running a store network to operating an online and offline business tied together by its Shop Your Way loyalty program. Sales to Shop Your Way members accounted for 72 percent of eligible sales for the fourth quarter — the same as in the third quarter.