Kmart Corp. will close 326 under-performing stores and embark on a five-year plan to emerge from Chapter 11 bankruptcy by April 30, 2003. The company had closed 350 stores last year. Kmart also plans an aggressive marketing campaign to drive traffic to its remaining 1,500 stores in the U.S., Caribbean and Guam. The Troy, MI-based chain launched an ad campaign tagged “The stuff of life” last February, one month after filing Chapter 11.
Kmart plans to file its five-year reorganization plan with U.S. Bankruptcy Court by Jan. 24. Holiday sales were $4.71 billion for five weeks ended Jan. 1, Kmart reports. That’s down 5.7 percent from same-store sales for the period last year, despite the inclusion of Thanksgiving Day and weekend sales in this year’s tally.
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