Sears Losses Increase

Sears Holdings Corp. (Hoffman Estates, Ill.) reported a $194 million loss for the quarter ended Aug. 3, 2013, 47 percent worse than the company did a year ago.

Same-store sales fell 0.8 percent at Sears stores in the U.S., 2.5 percent at Sears stores in Canada and 2.1 percent at Kmart stores. However, online sales rose 20 percent.

The company has posted six straight years of declining same-store sales. But it has been making some changes since Edward Lampert took over as ceo in January. It is providing iPads and iPod Touch devices to sales staff to research products and help customers on the sales floor.

And it is building up its loyalty program, called “Shop Your Way,” a step toward turning Sears into a member-focused company. Sears said members of the program made up more than 65 percent of revenue at its U.S. Sears and Kmart locations during the quarter, up from more than 55 percent in the prior-year period.

While Lampert said that shoppers redeemed rewards points at a much higher rate than a year ago and increased its costs, he believes that members are getting more involved with the program, which will allow Sears to speed up its transformation further.