From "territorial' to national, hardware core gets timely fix - Sears finest in hardware/diy - Company Profile

DSN Retailing Today, Sept 8, 2003 by Debbie Howell

The latest initiative to improve the hardware store format is an eight-store pilot featuring appliances. These eight "Sears Appliances and Hardware" stores opened in March in suburban Chicago, Cincinnati, Cleveland, Detroit, Houston and Long Island, N.Y., and focus on the core businesses of appliances, lawn & garden, paint and tools. Up to 260 appliance models were added, including up to 50 available as take-with items.

To make room for appliances, Sears eliminated more than 10,000 low-demand categories such as faucets, ceiling fans and exterior lighting and reduced selections in categories that include fasteners, plumbing and nuts and bolts.

Besides adding appliances, the test stores eliminate top-rack inventory placed over aisles and feature permanent displays of patio furniture and grills.

"This format gives us the ability to extend our great appliance offering in a new way, right in our customers' neighborhoods," said Heidemann in a press release announcing the pilot.

Growth of The Great Indoors has been slowed due to Sears' admission that the concept has not met performance goals. The format combines home improvement, housewares and home decor in select categories, but doesn't feature some traditional hardware departments, such as tools.

Despite Sears' challenges as a company, with sales still stalled as the retailer attempts to reinvent its full-line stores to compete with the growth of off-mall rivals, home improvement is one cornerstone business that Sears has managed to keep vibrant and relevant for today's consumer. The expanded Tool Territory concept and revisions to the hardware format prove Sears will change if necessary to continue meeting shoppers' needs.

SEARS MERCHANDISE GROUP

CORPORATE HEADQUARTERS
Hoffman Estates, III.

TOTAL ANNUAL REVENUE

$8.0 million (e)

SALES PER SQUARE FOOT
$303

NO. OF STORES & TRADE TERRITORIES
2,185 stores in 50 states and 1 intl. market

Fiscal year end figures

(e) = estimate

Source: Company Reports