* Fourth-quarter same-store sales down 3.8 pct
* Revenue down 5 pct at C$1.29 bln
* Shares hit two-year low
Feb 27 Department store chain Sears Canada Inc
reported a fall in revenue for the 16th straight
quarter on a day when Target Corp said it would open its
first 24 Canadian stores by April, intensifying competition in
an already crowded market.
Shares of Sears Canada, 51 percent owned by U.S.-based Sears
Holdings Corp, fell as much as 4 percent to a two-year
low of C$8.88 on the Toronto Stock Exchange.
Sears Canada said on Wednesday its revenue for the
November-January quarter, which includes the critical holiday
shopping season, fell 5 percent to C$1.29 billion.
Sales at established stores fell 3.8 percent on lower sales
of home electronics and snowblowers.
Department stores in Canada and the United States are
struggling with declining sales of electronics as they face
increasing competition from online retailers.
In addition, Canadian retail sales plunged 2.1 percent in
December in a weak Christmas shopping season, Statistics Canada
said on Friday. Department store sales fell 9.6 percent.
Sears Canada is also facing increasing competition as U.S.
retailers such as Wal-Mart Stores Inc expand their
Canadian operations and new ones like Target enter the country.
To compete with the new entrants and to reclaim lost market
share, Sears Canada announced a three-year plan in 2012 that
includes making radical changes to its pricing strategies and
sprucing up stores.
However, Chief Executive Calvin McDonald said last month he
was not entirely happy with the company's progress in the 19
months since he took the top job.
Target and Wal-Mart Stores continue to be bullish on the
Canadian market despite the falling sales at Sears Canada and
Canadian Tire Corp. Same-store sales at Canadian Tire
fell 1.1 percent in the quarter ended Dec. 29.
Sears Canada said fourth-quarter profit fell about 3 percent
to C$39.9 million ($38.8 million), or 39 Canadian cents per
share. The number included a pretax gain of C$29.7 million from
a voluntary buyout program and the sale of a joint venture
Sears Canada shares have fallen 21 percent in the year ended
January, while the broader S&P TSX Canadian consumer
discretionary index has risen 20 percent during the