DETROIT (AP) – Three of Michigan’s most recognizable retailers are hoping to gain momentum for 2003 during the holiday sales season.

Two of the state’s largest retailers head into the holidays on different sides of Chapter 11 bankruptcy reorganization. Troy-based Frank’s Nursery and Crafts Inc. will spend its first holiday season out of bankruptcy since filing in February 2001.

Meanwhile, Kmart Corp. of Troy faces the holidays under Chapter 11 for the first time. The Troy-based retailer filed for protection from its creditors Jan. 22 following disappointing 2001 holiday sales.

Borders Group Inc. of Ann Arbor turned a record fourth-quarter sales performance in 2001 and hopes for a repeat performance. Executives are looking for this year’s fourth-quarter profits to be 7 percent to 10 percent higher per share, the Detroit Free Press reported in a story yesterday.

Borders hopes its category management strategy – treating each department like a separate store – continues to impress regular shoppers, while new customers are drawn by storefronts featuring high-demand items.

“God bless Harry Potter and `Lord of the Rings,'” said Tami Heim, president of Borders Stores and

Kmart plans to entice shoppers with incentives. Chairman and chief executive officer Jim Adamson has said one of Kmart’s biggest holiday challenges will be offering discounts that draw customers, but don’t cut into profits.

A series of promotions on board games, jewelry and outerwear will kickoff on Thanksgiving Day.

“It’s not a make-it-or-break-it time for us,” said Kmart spokesman Dave Karraker. “But it is important to show positive same-store sales.”

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