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KMART TO STAY IN CANADA

Kmart Corp. of Troy, Michigan has taken its Canadian operation off the chopping block. The discount retailer put its 127 stores in Canada up for sale after taking a battering from Zellers and Wal-Mart. It was rumored that Zellers' owner, Hudson's Bay Co., wanted to buy Kmart so it would have more ammunition to battle Wal-Mart. The parent company had a $118-million(US) loss in its third quarter. Kmart will probably be making changes to its Canadian stores in the new year. This could include establishing a section called The Pantry, which would carry items such as snack foods, paper towels and laundry detergent. The idea is now being tested in the U.S.

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