Sears adds Structure to boost young men's: portfolio of brands expands

DSN Retailing Today, Oct 27, 2003

Brand-hungry Sears recently acquired the Structure name from Limited Brands Inc. for approximately $10 million. This longstanding specialty store label, still highly recognizable in the young men's market, may help Sears better compete with other retailers--particularly JCPenney--that have had better success reaching this customer.

With relatively edgy marketing that emphasizes brands including Lee, Levi's and Arizona, JCPenney has long been an apparel destination for these shoppers. Structure should finally give Sears' young men's department a hallmark brand.

When the well-known label hits stores in fall 2004, Structure should also help fill a void in Sears' young men's in terms of a fashion offering, bringing merchandise up to speed with its juniors department. There, brands including Mudd and Paris Blues have long been a draw.

"Acquiring the rights to Structure, which carries strong loyalty among its followers, is a great opportunity for Sears as it complements our existing private brand portfolio," said Mindy Meads, evp of apparel at Sears.

Previous to this acquisition, Structure had stood alone as a mall-based, specialty retail concept. However, over the past 24 months prior to the sale, Limited Brands had been phasing out its former retail division. Structure stores were eliminated in favor of a new Express prototype housing both misses and young men's merchandise tinder the Express brand.

As a hip, "metrosexual friendly" young men's casual line, Structure fits well with Sears' other national and private apparel brands including Lands' End, which rolled out to all of Sears' fun-line stores across the country this fall. Sears chairman and ceo Alan Lacy has credited Lands' End with positive comps throughout 2003, inspiring the company to reinforce its softer side with additional brand names.

Overall, this deal is interesting; it is not often that a retailer completely sheds one of its divisions and sells it as a brand. Limited Inc. may be banking on its missy customers--who were always able to use their Express credit cards at Structure--to buy gifts for their boyfriends, as well as bring them into Express stores. The acquisition has already improved cash flow for Limited Brands, and looks to do the same for Sears come 2004.