In a first for a wireless carrier, AT&T Inc. said Monday that it will use its phones’ location-sensing ability to target text ads with coupons and other offers to participating subscribers in New York, Los Angeles, Chicago and San Francisco.

Kmart, part of Sears Holdings Corp., is one of the chains that have signed up for ShopAlerts by AT&T. That means AT&T could send discount offers to subscribers who are close to a Kmart store. Get the full story »