Kmart Plans To Close Another 15 Stores

Kmart Corp. said Friday it will close 15 stores in eight states by the end of May and eliminate 1,300 jobs as part of an ongoing effort to boost profits by shuttering poorly performing stores.

Kmart has posted disappointing earnings for 11 consecutive quarters. In recent years, the company has shed hundreds of aging and unprofitable stores and eliminated thousands of jobs in an effort to cut costs.

The company has faced stiff competition for years from Wal-Mart Stores Inc., the Target chain of Dayton Hudson Corp. and other mass merchandisers and regional discounters.

Kmart’s sales and profits have lagged partly because its aging stores have been unable to compete with newer branches opened by its competitors. It has remodeled many of its aging stores to improve their prospects.

Of the latest stores to be closed, five stores are in California, three in Texas, two in Michigan and one each in Maine, New Jersey, Ohio, Oregon and Rhode Island.