Sears, Roebuck and Co. (Hoffman Estates, Ill.) announced a refinement of its business strategy for The Great Indoors chain of home decorating and remodeling centers.
The retail giant will close three under-performing stores and convert a fourth store into an outlet format. It expects an after-tax charge in the range of $75 million to $100 million in the 2003 fiscal third quarter to recognize expenses related to the strategic refinement. The store closures are expected to be completed by year-end. The stores to be closed are located in Arlington and Willowbrook, Texas and Cincinnati. One in Shelby, Mich., will be converted into an outlet. Following the closings, The Great Indoors will operate 18 stores in 11 markets nationwide.
“The Great Indoors is a viable, important format that has always resonated with customers,” said Sears chairman and ceo Alan Lacy. “The business continues to hold great promise.”
“We have high expectations for the future growth of The Great Indoors,” agreed Jeff Jones, Sears senior vp and general manager of The Great Indoors. “Our leadership team has identified the major strengths of the format, as well as opportunities to serve the customer better, while improving the stores' overall operational performance. We are redirecting the stores to further strengthen an already powerful customer proposition, as evidenced by the chain-wide individual store average sales of more than $30 million per year.”