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McDonald’s, seeking ways to grow after being knocked from its perch by Subway as the largest restaurant chain in the United States, is looking at adding nonfood items to its restaurants, CEO Jack Greenberg told McDonald’s shareholders last month. He did not expand on what items in particular the chain is examining. In addition, the company is seeking to buy a restaurant business that can eventually grow to 1,000 units, though Greenberg did not name specific targets. … After posting a $1 billion loss in a five-week period up to May, Kmart said it may not be able to emerge from bankruptcy next summer as planned. Same-store sales over three months leading up to May were down 16.4 percent. … Mexico’s antitrust agency, the Federal Competition Commission, said last month that it is considering investigating Wal-Mart subsidiary Wal-Mart de México to determine whether the company uses its market power to force suppliers to give it lower prices than those offered to its competitors. … Al Sharpton’s National Action Network and others marched through St. Louis’s Union Station Mall in May protesting a dress-code policy they claim is racist. The mall’s code of conduct prohibits “gang-related paraphernalia,” including bandannas, “do rags” and hats tilted to the side. The mall’s owner stands by the policy, saying it is meant for the safety of shoppers and workers and applies to all patrons regardless of race. Since adopting the policy last year, mall officials say sales have risen 11 percent and occupancy has also risen. … Sears CEO Alan Lacy said at the company’s annual shareholder meeting that Sears would like to bring in Martha Stewart Everyday, should Kmart stumble. Sears currently sells Martha Stewart-branded paint. “We always have an interest in attracting strong brands,” he said. … Starbucks will enter southern China and Macao later this year, following its successful entry into Hong Kong in May 2000. … Wal-Mart sells just about everything else; why not used cars? The world’s largest retailer will begin doing just that at several of its Houston area stores. Wal-Mart has leased property to Asbury Automotive, a Stamford, Conn.-based car sales company, for six months as a test drive of a concept the companies are calling Price 1 Auto Stores.

— Dave Bodamer