A. Kmart sells 18 stores to Home DepotKmart finalized Monday a deal to sell 18 of its stor

A. Kmart sells 18 stores to Home Depot

Kmart finalized Monday a deal to sell 18 of its stores to Home Depot Inc. , for $ 271 million, with an option to sell one more store. The original pact called for the sale of as many as 24 stores for up to $ 365 million. "The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year," Julian Day, president and chief executive of Kmart, said in a statement about the revised deal.

B. Toys R Us still selling toys

Troubled Toys R Us, in the midst of a major restructuring, reported a wider second-quarter operating loss Monday, while CEO John Eyler appeared to play down speculation that the company will stop selling toys altogether. Toys R Us earlier this month announced the company was exploring a possible sale of its global toy division as well as spinning off its Babies R Us unit as part of an ongoing strategic review of its business. The news sparked much speculation among industry watchers that the company was looking to remove itself from its traditional toy-selling business.

C. Southwest cutting 88 flights

Southwest Airlines Inc. , the largest U. S. discount carrier, said Monday it would eliminate 88 scheduled flights in a bid to boost revenue by freeing up planes for more lucrative markets. The Dallas-based carrier estimates the schedule changes, the largest in its history, will increase annual revenue by about $60 million. "This does represent the largest schedule tweak we've ever made," said Linda Rutherford, a spokeswoman for the airline, adding that the planned schedule changes will affect 3 percent of the airline's 2,800 daily flights.

D. "Exorcist" prequel scares up $18M

"Exorcist: The Beginning", a film that had to be re-shot with a new director because the first version was not scary enough, led the North American box office over the weekend, as moviegoers once again flocked to the resurrection of an aging franchise. According to studio estimates issued Sunday, the fourth installment in the 30-year-old "Exorcist" series sold about $18. 2 million worth of tickets in the three days since its Aug. 20 opening. Another new entry, the comedy "Without a Paddle", launched at No. 2 with $13. 2 million. The teen romance "The Princess Diaries 2.. Royal Engagement" slipped to No. 3 with $13. 2 million in its second weekend.

E. Low interest in low carb

Food manufacturers who have stocked store shelves with low-carbohydrate versions of everything from spaghetti sauce to ice cream may find they are eating the costs themselves, as the low-carb fad peaks, analysts and industry observers said. "It's typical that one rushes into the party just when the party is breaking up," said William Leach, food industry analyst at Neuberger Berman. Sales of low-carb branded foods surged $ 815 million, to $1.13 billion, in the 12 months ended June 13, according to market research firm Information Resources Inc. That includes both new brands like Atkins and Carb Solutions and extensions of existing brands--like Unilever' s Carb Options versions of Skippy peanut butter and Lipton soups.

The company may deviate from its traditional business.