Green Light for Kmart and Sears
New York City New York City , The blockbuster merger of Kmart and Sears cleared the waiting period established by the Hart-Scott-Rodino antitrust law. The waiting period ended yesterday, moving the retailers forward in their merger plans. The chains say they will close their merger in early March, if all goes according to plan. The deal still needs shareholder approval and other regulatory approvals.
Dollar General Disputes Merger Claim
Goodlettsville, Tenn., Dollar General Corp. said reports that it is seeking to acquire a chain of convenience or grocery stores was inaccurate. “The company has no current plans to make such an acquisition,” according to a statement released today. The report appeared on the Mergermarket.com Web site.
Sears Sales and Profit Decline in Q4
Hoffman Estates, Ill., In the fourth quarter ended Jan. 1, Sears’ profits had nowhere to go but down. The chain posted net income of $378 million, a far cry from $2.7 billion in the year-ago quarter, when the sale of the chain’s credit-card business boosted net income dramatically. Merchandise sales and services revenues for the 2004 fourth quarter were $9.6 billion, compared with $10.2 billion in the prior-year period, which contained an extra week.
“Fourth-quarter earnings and revenues met our expectations, with control of costs and expenses offsetting margin pressure,” said chairman and CEO Alan J. Lacy. “As we forecasted in October, domestic comparable-store sales were flat during the fourth quarter, with sales increases in October and November offset by a decline in December. The year was marked by further restructuring and repositioning of our core retail business, which slowed short-term results, but positions us well for the future.”
Sears is preparing for its merger with Kmart Corp. to take effect early this year, creating the third-largest U.S. chain, in terms of sales, behind Wal-Mart Stores and The Home Depot.