Wal-Mart Ousts Sears as Sales Leader

NEW YORK —  Sears, Roebuck & Co., the dominant name in American retailing for more than half a century, has lost its long-held spot as the nation’s sales leader.

Discounter Wal-Mart Stores Inc. has vaulted into the top position, with rival Kmart Corp. not far behind in second place, according to 1990 sales figures.

Despite a weak retailing environment, Bentonville, Ark.-based Wal-Mart’s sales rose a hefty 26% to $32.6 billion in its latest fiscal year, a spokesman said.

Troy, Mich-based Kmart’s sales rose 8.6% to $32.1 billion in the fiscal year, a spokesman said.

But Sears said its merchandise group revenue inched up only 1.2%, to just under $32 billion. Because it is so diversified, however, Chicago-based Sears is still far larger than either of the two huge discounters and had overall revenue of $56 billion last year.

Separately, Fitch Investors Service downgraded the ratings on $2.7 billion of Sears debt, saying the cost-cutting plan is “unlikely to materially improve profitability in the foreseeable future.”