Sears targets power format for apparel; launches major revamp for ailing departments

Sears Targets Power Format For Apparel

Launches Major Revamp For Ailing Departments

CHICAGO -- In targeting apparel as one of its "power format departments," Sears is seeking to become as well known for its men's, women's and children's wear offerings as it is for major appliances and other hardware.

A Sears spokesman said the goal is to become "the dominant merchant in apparel."

The nation's No. 1 retailer is aggressively retooling its apparel departments in an effort to make customers take notice of this high-margin end of the business, which has been ailing.

Sears will be adding major national brands and will be scaling back its private label programs in apparel. And while prices will be cut on basics and fashion basics to be more competitive with area discounters, Sears will also be going upscale in both product and merchandise presentation in certain segments, according to Sears officials, vendors and industry analysts.

Most of Sears' apparel segments have been lackluster performers over the last several years, and the giant retailer has already made some changes that should make the retailer more competitive.

Sears has contracted with Associated Merchandising Corp., which develops upscale labels and programs for such department and specialty stores as Dayton Hudson and Woodward & Lothrop, to develop specific new women's sportswear lines, according to a Sears spokesman. AMC has pulled together a separate design staff to service Sears, and the retailer expects to benefit from an infusion of new upscale resources. However, the spokesman added that "it will be several months before these items arrive in our stores."

The Sears spokesman also confirmed an analyst's report that fashion coordinators have been added to the men's and women's wear buying departments to create a fashion statement for the retailer. Along with that, Sears is addressing its distribution system so goods can be speeded through distribution centers to stores more quickly. One of Sears' problems has been responding to fashion trends fast enough to make an initial impact.

Sears contracted with Redoute Catalogue, S.A., an upscale French catalog house, to put together a collection of high-fashion women's apparel to be offered through Sears' catalog. The la Redoute line first appeared in the retailer's spring 1989 catalog.

More Timely Catalog

The apparel catalog, renamed "Style," will be increased to six times a year from twice a year in another move to enable the mass merchant to offer more fashionable items on a timely basis.

The national brands Sears currently offers in women's wear include Levi's, Lee, Sasson and Zena jeans, Jou Jou tops and bottoms, Jordache bottoms, Milani dresses and Gitano maternity wear. Private labels include Cheryl Tiegs sportswear, Stefanie (Powers) career apparel, Goolagong activewear and Carriage Court sportswear.

In men's wear the brands are Levi's jeans, Bugle Boy tops and jeans, Gitano sportswear, OshKosh workwear, Cotler tops and jeans, Clippermist outerwear and Wilson and Spaulding activewear. Private labels are Trader Bay, Oakton Ltd. and Arnie sportswear, Toughskins jeans and Fieldmaster workwear.

In children's, the brands include Health-Tex playwear, Levi's jeans, BVD underwear and Rothchild outerwear. Private labels are Winnie the Pooh dresswear, McKids playwear, Disney sportswear and Toughskins jeans.

One of the few apparel areas in which Sears has made its presence known, the children's wear department will be expanded and will be the first department to get a totally new look.

Sears will be adding other major brands in all three departments over the next several months, according to the spokesman.

Segments of the business that will be eliminated or scaled back include men's suits (despite the successful test of an expanded suit department in the chain's everyday pricing prototype in Wichita, Kan.) and other tailored clothing items, as well as women's dresses.

Warren Flick, Sears' men's wear vice president, has been quoted as saying that the store will be pursuing brands that are those geared "more to department stores" than to discounters or mass merchants.

Flick also said that the new men's wear assortment will be a 50/50 mix of branded and private label, which represents "a major shift to national brands."

Sears recently signed a major licensing agreement with OshKosh to manufacture a line of classic, updated men's sportswear. The agreement gives Sears exclusive rights to certain items in the line that will be developed. Products will include casual pants, knit and woven sport shirts, outerwear, fleece, socks, gloves and caps. Price points will be a step above the retailer's private label offerings, with casual bottoms from $26 to $30.

Sears' new everyday pricing strategy, unveiled chainwide March 1, is also expected to have an immediate effect on apparel sales.

In women's apparel, here are some before-and-after price point comparisons: junior dresses, previously $36 to $46, now $29.94 to $44; Cheryl Tiegs navy polyester and rayon pants and white cotton short-sleeve blouses, were $28, now $25; "clearance" items included a black jumpsuit, down to $11.99 from $40, and a pair of Lee jeans, reduced to $16.97 from $34.

PHOTO : While it has not yet finalized plans for new power men's and women's departments, Sears

PHOTO : has been retooling its apparel selections to make customers take note of this high-margin

PHOTO : business. By streamlining its distribution system, Sears can get more fashionable goods

PHOTO : into its Mainframe juniors' departments (top right) more quickly. In men's apparel (bottom

PHOTO : right), Sears' new licensing agreement with OshKosh adds a line of updated sportswear to

PHOTO : its offerings of basic men's work clothing.

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