Kmart To Make 400 Units Sears

TROY, MI-The $13 billion merger between Kmart Holding Corp. and Sears Roebuck & Co. will allow Sears to convert about 400 Kmarts into its nameplate stores over the next three years in efforts to expand that chain’s off-mall growth, according the Kmart’s annual report. This expansion will better place Sears in a position to compete with Wal-Mart, Target, Kohl’s and others, the report says.

Kmart currently operates 1,480 stores in North America, and Sears has about 2,400 units. Kmart’s report acknowledges that the merger will result in store closings, but is not specific as to how many.

The merger, which will form an entity named Sears Holding Corp., was first announced in November. Shareholders will vote on the measure March 24. The combined companies would form the third-largest US retailer behind Wal-Mart and Home Depot.