Opening the doors on a new concept - Store Of The Future - Sears Grand, superstore concept

DSN Retailing Today, August 4, 2003 by Laura Heller

Sometime this fall, Sears will unveil its newest concept--one it hopes will take the retailer away from its roots in regional malls and directly into the path of its customers.

"In order to grow this format of ours, we have to look off the mall," said Linda Blakely, Sears spokeswoman. Granted, the phrase "off the mall" has been used at Sears many times over the years, but the concept never quite looked like this. At a total of 210,000 square feet, Sears Grand will be the largest Sears store to date.

Located in a rapidly growing suburb of Salt Lake City, the store will be surrounded by competitive retail formats, which is all part of the plan.

"Today, people might have to drive past several retail locations to get to the mall, we don't want [our customer] to be forced to make that choice," she said. "We are bringing the best of Sears to where she wants to shop, to where she's telling us she wants to shop."

That Sears calls its customers "she" is telling. The retailer most commonly known for hardlines has been making a bid for more female-oriented businesses for the better part of a decade, launching its now famous "Softer Side of Sears" campaign in 1995. The Grand concept continues this push.

Sears Grand will be set up very much like a discount store or supercenter. Consumers will be greeted by rows of check-out lanes at the entrance with apparel prominently featured directly behind them in the center of the store. "Apparel will be a very important part of what you see in this store," said Blakely.

In addition to Sears' staple categories, new departments include media such as music, movies, books and magazines, dry grocery, health and beauty aids, cleaning products, pet supplies, toys and games, a seasonal garden center, an automotive center and home maintenance tools such as plumbing parts and furnace filters. Sears Grand will have extended store hours and be open weekdays from 8 a.m. to 10 p.m. and from 10 a.m. to 9 p.m. on Sundays.

"It's about everyday solutions and one stop shopping," said Blakely. And if that sounds a bit too much like a discount store, Blakely counters with, "This is a full-line Sears store located outside a regional mall location, but positioned as offering better quality merchandise at a good value. Sears is not a discounter."

But it is positioning itself to better compete with discounters as well as the home improvement centers and the specialty retailers. Sears Grand is the retailer's next step after redefining its existing department store experience. Here Sears is trying to be better positioned on the competitive landscape.

"I understand that regional malls aren't being built anymore, that Sears doesn't like the cost structure of those stores and that they don't like competitors stealing market share," mused Eric Gordon, research director at the Center for Retailing at the University of Florida. "But this may be more of a defensive move than anything else and the fact that you go on the defensive doesn't mean it's going to work."

In all of these category extensions, Sears will be going up against established retailers such as Wal-Mart, Toys "R" Us and Best Buy--all of which have lower cost structures and more buying clout with vendors in price-sensitive categories such as consumables, CDs and toys.

For its part, Sears emphasizes that the Grand concept is only a test. "We want to have five pilot stores, each one testing different things," said chairman and ceo Alan Lacy. "They will be of varying sizes with varying merchandise assortments." The Utah store will be the first of five planned Sears Grand units. The second will open in Gurnee, Ill., outside of Chicago sometime next year.

According to Blakely, the company will be closely monitoring customer reactions and using feedback to have the prototype more closely meet the consumers' needs. Sears must create a welcoming environment, said Blakely, "If she is going to be coming to her Sears Grand as much as we'd like her to."