Sears cuts prices on more than 5,000 items

Sears Canada is cutting prices on more than 5,000 items as the big department store chain and other Canadian retailers gear up for more intense competition including from the U.S. discount giantTarget.

The money-losing retailerhas been streamlining its business and decluttering Canadian stores in an effort to boost sales.

It is also dealing with stepped-up competition from the likes of Wal-Martwhile Targetis about to set up shop in Canada.

Sears said Thursday that the price cuts will be the first significant change seen by customers as part of the transformation being undertaken by the company.

"The prices now offered at Sears are what Canadians expect from a company committed to providing value day in and day out," Sears Canada president and chief executive Calvin McDonald said in a statement.

"Sears has a history of being known for great value across the store every day ... but we need to do this in a way that offers a better shopping experience."

The price cuts in Canada came as its U.S. corporate parent, Sears Holdings Corp., laid off 100 workers at its headquarters outside of Chicago on Thursday.

The move comes two months after the company got a hefty tax credit for dropping a threat to move its headquarters out of state.

Last month, Sears Canada laid off 400 employees at stores across Canada as it closed nearly all of its in-store cafes. In addition to the cafe jobs, the company also cut some support and head office staff.

The cuts followed the loss of about 70 head office jobs at Sears Canada late last year.

Sears has roughly 30,000 employees across Canada and more than 400 corporate, dealer and home services stores.

Late last year, Sears Holdings said it would close between 100 and 120 Sears and Kmart stores in the United States.