TROY, Mich. -- Kmart Corp. is faring about as well as expected through the first two months of its bankruptcy, Local 4 reported Monday.

The retailer faces a bankruptcy judge again Tuesday in Chicago.

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Kmart lost $135 million last month, down from $174 million in February losses, Local 4 reported. Year-to-year sales fell 8 percent, the station reported.

Retailers gauge how well they're doing by how much consumers are buying, Local 4 business editor Rod Meloni reported. So, executives had some reason for optimism.

But overall, Kmart's sales continue to lag behind competitors. Rival Target stores saw revenue jump nearly 7 percent and Wal-Mart reported an increase of nearly 10 percent, according to Local 4.

Bankruptcy experts say Kmart risks losing its customer base during its current struggles and predict that some consumers who try competitors may never come back.

"There's so many other opportunities for customers to buy things at a lower price," says bankruptcy expert James McTevia.

Kmart will be in court with its creditors Tuesday, who claim the retailer is paying executives too much money. A judge could rule on the issue by Wednesday, Local 4 reported.