Sears to unveil Ltd. stores; accelerates growth of power departments - Sears Ltd. stores to focus on certain product lines

Sears to Unveil Ltd. Stores

Accelerates Growth of Power Departments

CHICAGO -- Sears will unveil next month a new type of store with merchandise presentations tailored to meet the needs of specific markets.

The new stores, called Sears Ltd., could place the retailer in even more direct competition with discount and specialty stores in hundreds of markets across the nation.

A Sears spokesman confirmed that the chain will open two Sears Ltd. stores here. While acknowledging that in some cases the new "intercept" stores will be scaled-down versions of multi-department Sears units, other Sears Ltd. stores could be as large as the typical Sears department store.

The stores will be market-focused; that is, they will contain "power departments" from a multi-line store that are most appropriate for each specific store site. Other departments could be scaled down or eliminated outright depending on local demographics and competition form other stores.

According to published reports, a projected 105,000-square-foot Sears Ltd. in the Ford City Shopping Center in southwest Chicago will feature major presentations in children's apparel, Brand Central appliances and electronics, and paint and hardware. The unit will sell men's and women's sportswear, but just dabble in automotives and home furnishings.

The other Chicago unit, a 59,000-square-foot facility in Old Town, will showcase Brand Central, housewares and light furniture.

Because of the flexible size and merchandise mix, Sears Ltd. gives the giant retailer access to numerous markets that otherwise would not be suitable for a full-line Sears department store. With its new power department strategy, Sears can now rapidly roll out a Brand Central, for instance, much more quickly and intensively than it could within its own department stores.

The stores also appear to be targeted to neighborhood locations, away from the typical enclosed malls that currently contain most of Sears 800-plus department stores. These neighborhood sites will place the giant retailer in closer physical proximity to discount stores, which typically operate in strip centers on main thoroughfares a short distance away from major malls.

In addition, Sears Ltd. will maintain the retailer's new everyday pricing and brand name strategy.

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