TORONTO - Sears Canada Inc. says it is laying off 700 employees - 360 from its department stores and about 300 from distribution centres.

The remaining workers are being let go from head office and other support areas.

The cuts impact four jobs in Windsor and three in Chatham, all management positions.

Sears Canada has been revamping operations to encourage more customers to return to its stores after

years of declining sales, and also to prepare for the entry of numerous U.S. retailers, including discount chain

Target.

It has 195 corporate stores as well as various other locations across the country.