• by Sarah Mahoney  @mahoney_sarah, January 11, 2011

The holidays weren't so happy for Sears: The retailer says its sales slipped 1.7% in December—including a 6% decline at its domestic flagship stores and a 2.4% gain at its Kmart division. Still, the Hoffman Estates, Ill.-based holding company says it expects quarterly earnings, due out in February, to come in above analysts' estimates, thanks to a better-than-expected tax rate.

At Sears—as was true at many retailers—consumer electronics failed to lure customers, and accounted for over half of the declines in its Sears stores. Sales of appliances and tools also fell, while footwear, jewelry, and automotive goods increased in the quarter-to-date period.

The better news came from Kmart, with results buoyed by the success of its layaway program, as well as advances in toys, home, sporting goods, apparel and footwear.

Kmart is also dabbling in the money business. A spokesperson for the company confirms that it is testing financial centers in four markets, as reported in the Chicago Tribune. Like the money centers offered by rival Walmart, the centers allow customers to cash checks, pay bills, and buy money orders, and are operating in Illinois, Los Angeles, Puerto Rico and Wisconsin.