Lawn & Garden - Sears, Roebuck and Co - Brief Article

DSN Retailing Today, Dec 11, 2000

Craftsman is not just a powerhouse tool line; it has also enjoyed success in lawn and garden, where Sears has had strong sales of outdoor power equipment. Even den is success, though, Sears' story in lawn and garden of untapped potential.

In mall stores, the category is tightly focused with an emphasis on hand and power tools and barbecue grills. Offerings don't extend to lower-ticket items such as fertilizer, insecticides, garden pots and live goods. Category focus is also narrow at The Great Indoors, where customers can shop for outdoor living products that include patio furniture, garden decor and grills.

Only in Sears' hardware stores is a full-line lawn and garden department found. A larger prototype the retailer tested this summer features the first attached nursery. "The full-line hardware stores do quite well in lawn and garden. That's one of their draws," said Jim Robisch, senior partner of The Farnsworth Group, a retail consulting firm.

Dating back to the 1960s, Sears had a heavy emphasis on lawn and garden, including green goods, but it moved away from this strategy in recent years. Now, with lawn and garden sales booming at home centers and mass retailers, experts said it might be time for Sears to rethink its approach, especially in its mall-based locations. Charles Greenidge, president of consulting firm Greenidge and Associates, said the retailer's advantages in lawn and garden are its brand recognition and its vast network of store locations.

"Their strengths are their position and locations overall in the nation. You have some customers who are loyal Sears customers," said Greenidge. Sears enjoys significant market share in power equipment categories, Greenidge added, although exact figures weren't available.

Sears' lawn and garden sales were estimated at $500 million last year, making it the category's seventh largest retailer, behind market leader Home Depot ($5.1 billion) and Lowe's ($900 million). By the same estimates, the Big Three also surpass Sears in lawn and garden, each generating category sales of $830 million to $1.4 billion.

For Sears, success in lawn and garden has been mixed, with strong sales gains noted in the first and third quarters of 2000. This past summer, the retailer tested a new store prototype that expanded the space for lawn and garden by about 10%. The new format is currently in about 144 stores and is being rolled out nationwide. The lawn and garden department sticks with the same basic categories offered in other Sears mall stores, the difference being a deeper assortment, highervisibility within the box and improved fixturing.

Analyst John Grillo of Deutsche Banc Alex. Brown said that although Sears' mall stores aren't a draw for everyday lawn and garden items, which sacrifices higher visit frequency and contributes to its lower market share, the retailer does shine in the area of customer service.

"In lawn and garden against Home Depot, I would give the nod to Sears on their service levels," Grillo said. "They have knowledgeable salespeople in those areas, and they have a track record in an existing brand franchise with consumers."

This summer, Sears seized another opportunity to grow the category when it added 600 lawn and garden tools to its e-commerce site. Available brands expand beyond Craftsman and Kenmore to include Toro, Yard-Man, Black & Decker and Weber.

With Sears' brand strength in Craftsman and its varied retail formats, it has carved a unique, differentiated position in lawn and garden that serves diverse groups of customers.