Sears Canada revives 'Eatons' with seven stores in six cities - Brief Article - Statistical Data Included

DSN Retailing Today, Dec 11, 2000 by Jim Fox

TORONTO -- Sears Canada has rewritten Canadian retail history. After purchasing 19 units from defunct retailer T. Eaton Co. Ltd. in 1999, Sears Canada is keeping the Eatons name alive. The retailer recently opened seven Eatons units, the largest situated in downtown Toronto and topping out at more than one million sq. ft.

All seven of the glitzy Eatons department stores opened on Nov. 25 in six cities across Canada as Sears brought back from the dead a famous Canadian retail name it acquired as part of the company's sell-off last year. Of the 19 units it purchased from T. Eaton, 12 are being converted to suburban Sears Canada outlets.

In addition to reviving the name, Sears Canada has preserved the store's high-end appeal. The merchandise mix in the new stores is limited to moderate- and high-end items, and emphasis has been placed on the store's service component--including personal valets and manned elevators.

"As Canadians will see, this has not simply been a paint job," said Paul Walters, chairman and ceo of Sears Canada, predicting sales of $1 billion annually in three years. The $200-million (US$129.4 million) investment has been a "dramatic, dynamic full-scale transformation, allowing us to present the latest retail design concepts from around the world and a unique selection of products and services," he said.

The Eatons division has two urban department stores in Toronto and one each in Ottawa, Winnipeg, Calgary, Vancouver and Victoria.

In addition to the specially-trained staff of 4,000 that covers a combined area of 2.5 million sq. ft. for all the stores, there are many other "unique" services. These include a multilingual customer service department, customer service desks that are continuously staffed on each floor, personal shoppers and concierge services. The Toronto Eaton Center and Vancouver stores also have a full-service spa, demonstration kitchen, market-style restaurant and Starbucks Cafe.

There's a wide range of furniture, electronics and appliances for sale--items the former Eaton's had essentially eliminated in favor of fashion apparel shortly before its demise.

"From the outset, our objective has been to offer exceptional stores that meet all of the needs and wants of our primary customer," Walters said. He described this person as the "time-pressed urban customer who enjoys shopping, wants the latest styles and trends, demands service expertise and wants an exciting, entertaining environment to shop in."

Sears acquired the Eatons trademark and 19 of its top stores last year for $180 million (US$116.5 million). High-profile ads have revolved around the new deep purple trademark color, while the apostrophe has been dropped from the former Eaton's along with the name now placed in lowercase modern-style letters.

Analysts said the trick to making the new Eatons successful will be to distinguish it from Sears and quickly appeal and capture the minds of consumers. In fashion apparel, as well as offering new, exclusive brand names, Eatons brought back successful private labels, including Vanity Fair, Work Connection, Casual Connection, and Attitude. For the first time in Canada, the Toronto Eaton Center store features self-contained street shops for Tommy Hilfiger, DKNY Jeans, Polo Sport Ralph Lauren, Kenneth Cole New York and BCBG Max Azria, ranging from 1,500 sq. ft. to 4,000 sq. ft. and accessible from Yonge Street.

"Customers experience the convenience and selection of a department store with a flair for presentation and a level of service typically found in a boutique shop," Walters said.

All stores have the "e home" environment with merchandise geared toward the urban lifestyle.

As part of the re-branding plan, Eatons launched the new corporate identify, a new credit card, a 100-page catalogue that has been mailed to more than 4.2-million households and an interactive Web site.