KMART CANADA ON CHOPPING BLOCK
By Adnews Staff
Kmart Canada has wilted in the heat from competitors. Chairman Floyd Hall told financial analysts this week that the U.S.-based discount chain's Canadian operation will likely be sold within 30 days. It has been losing market share to Hudson Bay Co.'s discount chain Zellers and to Wal-Mart Canada. Canadian advertising for Kmart is done mostly in-house. Some creative comes from Kmart's agency in the U.S., Campbell Mithun Esty of Minneapolis, Minnesota. Over the past few weeks there has been speculation that the U.S. parent company is going to file for protection from creditors but Kmart has denied the rumor. Kmart has had 10 consecutive disappointing quarters during which its stores were hit by intense competition. Kmart announced earlier this year that it will close 328 U.S. stores. This week the company said it may close an additional 70 stores. In 1991 Kmart Canada launched a five-year plan to develop a more upscale image. The chain reorganized its stores and changed its corporate logo.