UPDATE 1-Sears Canada revenue falls yet again

Wed Aug 21, 2013 8:57am EDT
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* Cuts 245 jobs due to outsourcing

* Job cuts to result in C$11-C$15 mln in transformation costs

* Revenue falls 10 pct, same-store sales declines 2.5 pct

Aug 21 (Reuters) - Department store chain Sears Canada Inc's revenue declined for the 18th quarter in a row as the company struggles with weak demand and increasing competition from U.S. retailers.

Sears Canada, to compete with companies such as Target Corp and Wal-Mart Stores Inc, announced a three-year plan in 2012 that included making radical changes to its pricing strategies and sprucing up stores.

"This period marks the half-way point of our three-year transformation plan, and although we have much work to do, we are starting to see progress ..." Chief Executive Calvin McDonald said in a statement.

The company said it would cut 245 jobs as it outsources some of its information technology and accounting jobs.

The company, which has about 29,000 associates, said the job cuts and the outsourcing move would result in C$11-$15 million in transformation costs.

Sears Canada, 51 percent-owned by U.S. department store chain Sears Holdings Corp, said its home and hardlines businesses have struggled due to the weak growth housing market.   Continued...