Sears Hardens its Position

The softer side of Sears appears to be diminishing. The Hoffman Estates, Ill.-based retailer announced plans to open three Appliance & Electronics test stores in the Chicago area this year to focus on what the company called its “strength in electronics and household appliances in areas that may lack the demand for full-sized stores.” A Sears Appliance & Electronics test store will open in northwest Indiana in June and two stores in suburban Chicago are set to open in October, chairman and ceo Alan Lacy told shareholders. Lacy said he could see opening as many as 100 such specialty stores if the tests are successful.

Lacy's predecessor, Arthur Martinez, had tried to turn Sears around in the 1990s by trumpeting the retailer's “softer side,” emphasizing apparel and other women-related merchandise in a heralded marketing, advertising and store-improvement campaign. It insisted that it had been wrong for several years in aiming its marketing at men shoppers buying tools and hardware. It claimed its target shopper was really women, and that they would respond to the repositioning. It was successful for a time in the mid-90s, but Sears has returned to struggling the past few years.