Sears to eliminate floor, window biz - Sears Roebuck eliminates installed floor coverings and custom window treatments - Brief Article

DSN Retailing Today, Jan 21, 2002 by Katherine Hutchison

HOFFMAN ESTATES, ILL. -- Installed floor coverings and custom window treatments are the latest merchandise casualties of Sears Roebuck & Co.'s turnaround plan. Having already decided to ditch cosmetics and some other underperforming categories last year, Sears confirmed Jan. 8 that carpeting, tile, linoleum and window treatments would be the next to go as it clears out room for stronger categories.

About 560 of Sears' 860 full-line stores and 1,500 sales positions will be affected, in addition to the 4,900 companywide layoffs the retailer announced last fall. Spokeswoman Peggy Palter said the space is earmarked for what the company calls "home accents"-- lamps, picture frames and other take-with products, as well as area rugs and ready-made window treatments--all of which require less sales help.

In October, the retailer announced it would revamp its full-line stores and expand floor space for growth areas, including appliances, fitness, mattresses and home fashions. But while the plan for appliances is to offer more lower-priced product, home-related merchandise will be targeted to a higher-income customer than in the past.

Sears isn't necessarily going with the upscale home-decorating route in its full-line stores. However, the goal, as the retailer spelled out in its October meeting, is to woo the higher-income appliance and electronics shopper to its home fashion and apparel offerings, making for a "whole-house" customer. According to the plans at the time, this will include a greater focus on kitchen, bed and bath, decor, a "home accent shop" and a "closet shop" resembling displays found in the Container Store.

Palter added Sears is not ready to release the full details of its revamped home-fashions selection, and it isn't saying yet whether existing categories will be expanded or new ones will be added. However, decorator rugs are one category unlikely to be expanded, she said.

Sears intends to take an unspecified charge in the fourth quarter for the latest category exit, which will take place in February.

The news came on the heels of Sears' announcement that it would open 15 full-line stores in 2002, seven of which are upgrades to the new format in existing markets. In addition, three store closings are planned for the year, which puts the company's anticipated aggregate full-line store openings for the year at five.