The exact number of stores, locations, and total purchase amount will be determined based upon the "satisfaction of certain conditions" which are to occur within 60 days for the majority of the stores and 75 days for the remainder, locally based Kmart says in a statement.Sears says it also has reached a deal for the sublease of up to seven Wal-Mart stores in "mid-size markets."

Hoffman Estates, IL-based Sears expects to take possession of four stores in 2004, up to 55 stores in 2005 and the remaining two stores in 2006. The acquisitions include real estate and Kmart store fixtures, but exclude inventory and liabilities not related to leases.

Kmart president and CEO Julian Day says the sales to Home Depot--up to 24 stores for as much as $365 million--and to Sears concludes the selling of any "significant number" of more stores. "The transactions with Sears and Home Depot represent a total purchase price of almost $1 billion for less than 80 of our stores, or approximately 5% of our current store base," Day says. "Both transactions represent opportunities to realize value, which can be utilized to improve the remaining store base and to strengthen the company. We are not currently in discussions regarding any additional significant store sales, although we will continue to evaluate opportunities as they arise."