* Cuts 245 jobs due to outsourcing
* Job cuts to result in C$11-C$15 mln in transformation
* Revenue falls 10 pct, same-store sales declines 2.5 pct
Aug 21 Department store chain Sears Canada Inc's
revenue declined for the 18th quarter in a row as the
company struggles with weak demand and increasing competition
from U.S. retailers.
Sears Canada, to compete with companies such as Target Corp
and Wal-Mart Stores Inc, announced a three-year
plan in 2012 that included making radical changes to its pricing
strategies and sprucing up stores.
"This period marks the half-way point of our three-year
transformation plan, and although we have much work to do, we
are starting to see progress ..." Chief Executive Calvin
McDonald said in a statement.
The company said it would cut 245 jobs as it outsources some
of its information technology and accounting jobs.
The company, which has about 29,000 associates, said the job
cuts and the outsourcing move would result in C$11-$15 million
in transformation costs.
Sears Canada, 51 percent-owned by U.S. department store
chain Sears Holdings Corp, said its home and hardlines
businesses have struggled due to the weak growth housing market.
The housing market slowed dramatically in response to
tighter rules, and some economists have said that the U.S.
housing crash of the last decade would be repeated in Canada.
The company's home and hardlines unit, which includes home
furnishings, mattresses and home electronics, accounted for more
than a fourth of its total revenue of C$960.1 million in the
Total revenue fell 10 percent, while sales at established
stores, a key measure for retailers, fell 2.5 percent.
Total expenses fell by 10 percent in the second quarter.
The company posted a net profit of C$152.8 million ($147.1
million), or C$1.50 per share, compared with a net loss of C$9.8
million, or 10 Canadian cents per share, a year earlier.
Excluding an after-tax gain of $164 million, it posted a
loss of 11 Canadian cents per share.
Sears Canada sells baby goods, appliances such as coffee
makers, blenders, microwaves, as well as apparel and
accessories. Its private brands in apparels include Jessica and
Shares of the company closed at C$12.27 on Tuesday on the
Toronto Stock Exchange.