UPDATE 2-Sears Canada shares down on Target's entry plans, weak results

Wed Feb 27, 2013 2:07pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Fourth-quarter same-store sales down 3.8 pct

* Revenue down 5 pct at C$1.29 bln

* Shares hit two-year low

Feb 27 (Reuters) - Department store chain Sears Canada Inc reported a fall in revenue for the 16th straight quarter on a day when Target Corp said it would open its first 24 Canadian stores by April, intensifying competition in an already crowded market.

Shares of Sears Canada, 51 percent owned by U.S.-based Sears Holdings Corp, fell as much as 4 percent to a two-year low of C$8.88 on the Toronto Stock Exchange.

Sears Canada said on Wednesday its revenue for the November-January quarter, which includes the critical holiday shopping season, fell 5 percent to C$1.29 billion.

Sales at established stores fell 3.8 percent on lower sales of home electronics and snowblowers.

Department stores in Canada and the United States are struggling with declining sales of electronics as they face increasing competition from online retailers.

In addition, Canadian retail sales plunged 2.1 percent in December in a weak Christmas shopping season, Statistics Canada said on Friday. Department store sales fell 9.6 percent.   Continued...