Sears Holdings Corp's quarterly loss almost doubled as weak demand for gadgets and a reputation for run-down locations hurt sales at the operator of Sears department stores and the Kmart discount chain.

The company, led by hedge fund manager Edward Lampert, has faced criticism for relying too heavily on cost-cutting to boost its bottom line, rather than upgrading its stores and improving customer service.

Sales open at least a year fell 0.7 percent at Sears Domestic, 0.9 percent at Kmart and 7.8 percent at Sears Canada in the third quarter ended on October 29.

The company's net loss widened to $421 million, or $3.95 a share, from $218 million, or $1.98 a share, a year earlier.

Excluding items, Sears posted a loss of $2.57 a share, while analysts on average were looking for a loss of $2.29, according to Thomson Reuters I/B/E/S.

Revenue fell 1.2 percent to $9.57 billion, below the analysts' average estimate of $9.60 billion.

Earlier this week, Sears Canada , which is now 90.4 percent owned by Sears Holdings, posted a net loss of C$46.6 million ($45.8 million), or 44 Canadian cents a share, compared with a year-earlier profit of C$20.8 million, or 19 Canadian cents a share.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)

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