By Solarina Ho
TORONTO Nov 26 Sears Canada Inc is
laying off nearly 800 employees as it overhauls its repair
services and parts businesses and makes further staffing cuts at
its head office, the department store chain said on Tuesday.
News of the layoffs broke shortly before markets closed,
sending shares up 4 percent to close at C$18.98.
Sears Canada, 51 percent-owned by Sears Holdings Corp
, said 712 jobs will be cut from its services divisions
and an additional 79 eliminated at the head office. The company
has more than 25,000 associates, according to the Sears Canada
The department store, which reported a wider quarterly loss
last week but its first rise in quarterly same-store sales since
2008, operates 181 corporate stores and 241 hometown dealer
The company has lost significant market share amid an
increasingly competitive Canadian retail environment,
particularly as big-box U.S. retailers and discount department
stores enter and expand in the country.
Sears Canada said it will begin using contracted technicians
for repair services in mid-markets instead of Sears technicians
and that service teams in major markets would be streamlined.
Warranty repair for appliances is also shifting to the
supplier, in line with industry standard, it said.
The company's parts division, which consisted of a central
processing center and 16 stand-alone locations, will be
consolidated into three major centers in Calgary, Toronto and
Since Doug Campbell took over as chief executive officer
from Calvin McDonald in September, the company has also said it
is selling its stake or ending leases on a number of properties,
including its flagship downtown Toronto store. Those deals total
more than C$700 million.