Canadian department store operator Sears Canada Inc decided to sell and lease back a distribution outlet in Calgary, and said it would cut more costs this season, as the company struggles with declining sales.
Sears Canada said on Friday it planned to slash costs by an additional $100 million-$127 million in 2016, with most of the cuts planned within the first quarter.
The company, whose largest shareholder is Sears Holdings Corp CEO Edward Lampert and his hedge fund, has closed stores and cut jobs to fight rising competition from U.S. rivals such as Wal-Mart Stores Inc.
Sales at Sears Canada’s core retail store network, which consists of 95 full-line shops and 41 Sears Home stores, fell 0.8 percent within the fourth quarter ended Jan. 30, from a year earlier.
Revenue fell 8.7 percent to $887.6 million.
The Toronto-based retailer said the sale-leaseback deal was for $84 million.
Sears Canada swung to some quarterly profit, helped with a gain from the termination of a charge card agreement.
The company’s net income was $30.9 million, compared with a loss of $123.Six million.
Sears Canada booked an increase of $170.7 million from the sale of JPMorgan & Chase Co’s Canadian credit card portfolio associated with the store operator.
Bank of Nova Scotia agreed in October to buy the portfolio, a month ahead of the expiry from the servicing agreement.
? Thomson Reuters 2016
