More Kmart stores to sell appliances
ATLANTA, March 26 (Reuters) - Retailer Sears Holdings (SHLD.O) said on Wednesday it plans to sell appliances in more of its Kmart stores and would open more dealer stores this year.
The retailer controlled by hedge fund manager Edward Lampert also said in its annual report filed with the U.S. Securities and Exchange Commission that it expects capital spending this year to be flat with last year's level.
Sears Holdings, based in Hoffman Estates, Illinois, said earlier this year that it would reorganize into five types of business units: operating, support, online, real estate and brand. The company is also searching for a permanent chief executive.
In the filing, Sears Holdings said it "will continue to explore opportunities to profitably cross-merchandise products and services" between its Kmart and Sears stores.
That includes continuing to roll out home appliances, such as those in Sears' proprietary Kenmore brand, to more Kmart stores, Appliances, a category in which Sears is the dominant U.S. retailer, accounted for about 15 percent of company revenues during fiscal 2007, the filing said.
As of Feb. 2, the end of fiscal 2007, about 280 Kmart stores were selling major home appliances, the filing said. At the end of fiscal 2005, about 100 Kmarts stores were selling Sears branded products such as tools and appliances.
The company said it opened 40 dealer stores during fiscal 2007, and would open more in rural and urban areas this year. Sears has 857 dealer stores, which sell appliances, electronics, lawn and garden equipment, hardware and car batteries.
Aylwin Lewis, who left as Sears Holdings' chief executive earlier this year as results weakened, received total compensation of nearly $8.9 million for 2007, up from $4.8 million in fiscal 2006, the company disclosed in its proxy filing on Wednesday.
Sears Holdings shares fell 19 cents to $107.63 on Nasdaq on Wednesday, up 27 percent from a low of $84.72 in January. However, the stock is down about 45 percent from a high of $195.18 in April 2007.
(Reporting by Karen Jacobs, editing by Richard Chang)
