DETROIT, May 5 (UPI) -- Troy, Mich.-based Kmart earned $276 million in the fourth-quarter of 2003 but remains in a fierce battle for market share with other big discount retailers.
Same store sales declined 13.5 percent as budget-conscious customers turned to rivals Wal-Mart and Target. Kmart Holding Co. cut 57,000 jobs and closed 600 stores when it came out of bankruptcy one year ago.
Analysts said the fourth-quarter profit, the first for the chain since 2001, was the result of back-to-basics cost cutting, tight inventory control and exclusive brands like Martha Stewart Everyday and Joe Boxer.
"We are delighted with the progress we're made over the past 12 months," CEO Julian Day said in an interview with the Detroit News. "All of us are pleased with the responses of our customers and vendor partners to our commitment to service and product quality."
Kmart has streamlined many of its 1,512 stores to cut clutter and is searching for a niche to differentiate it from competitors and bring new customers through store doors.
