Sears Canada (Toronto) has announced today that it will convert the seven remaining Eaton's department stores that it bought in 1999 to Sears stores. The conversion of these stores will be completed by the end of July 2002. According to Sears ceo Mark Cohen, the move will better enable the retailer to leverage its buying and advertising efforts.
Sears Canada bought the bankrupt T. Eaton Co. for $50 million and has spent around $100 million trying to revive the brand. The retailer originally bought 19 Eaton's stores, converting 12 to the Sears name and keeping seven under the Eaton's banner in key downtown markets (in Toronto, Ottawa, Winnipeg, Calgary, Vancouver and Victoria). The ensuing economic slow-down, coupled with the sudden resignation of ceo Paul Walters, hurt Eaton's profits. Even after U.S. parent company Sears, Roebuck (Hoffman Estates, Ill.) named Cohen as ceo, analysts surmise that competition from Hudson's Bay Co. and U.S. brands like Wal-Mart would prevent Eaton's from being successful.
“We are focused on near-term retail market weaknesses,” says Cohen, “as well as on longer-term changes in customers spending habits, wants and needs. These, coupled with Eaton's lack of critical mass, suggest that this change should take place now.”
There will be no wide-scale liquidation and all stores will remain open during the conversion process. According to Cohen, Sears Canada will continue to provide many of the brands that Eaton's had been providing. The company will also add a complete assortment of merchandise categories that have generally not existed in these stores, such as electronics, major appliances, hardware and mattresses. Additionally, these seven stores, along with approximately 13 other, larger Sears stores, will form the basis of a Sears “select” strategy, offering customers a broader assortment of better fashion merchandise.
Sears Canada is a multi-channel retailer with 118 Sears department stores, the seven urban Eaton's department stores now in transition and 37 furniture and appliances stores. Sears also has 136 dealer stores, 17 outlet stores, 38 floor covering centers, 52 auto centers and 108 Sears Travel offices in Canada.