Kmart Holding Corp. (Troy, Mich.) reported it was profitable for the 39-week period ended Jan. 28, 2004, though its sales figures continue to slip.
Total sales decreased 23 percent for the three quarters and same-store sales were down 9.5 percent. The company attributed the decrease in same-store sales to several company-wide promotional events occurring in the prior year, along with a reduction in advertising, including the frequency of mid-week circulars in the current year. It said the decrease in total sales was attributable to the closure of 316 stores during the first quarter of 2003.
“The men and women of the new Kmart are focused on managing our business to restore profitability,” said president and ceo Julian Day. “By giving careful thought to the processes of sourcing, logistics, pricing, inventory management and in-store presentation, we have significantly improved the profitability of our market basket. Our store associates and store managers are committed to continuous improvement of customer service. Likewise, our employees based at headquarters are dedicated to supporting improvements in the store experience. Offering our customers superior products supported with value, convenience and service in a way that allows Kmart to generate profitable sales, will support the continued investment in our business to better serve customers in the future.”
Day attributed the profitability to “prudently managed” inventory investment. “Our improved inventory management, along with cash flow from operations and receipts from sales of surplus real estate, has significantly strengthened our cash position,” he said.