Sears Home increases network to 48 units
By Michael J. Knell -- Furniture Today, January 4, 2004
TORONTO — Sears Home has opened stores in Red Deer and South Edmonton, Alberta, and Boisbriand, Quebec, and is set to add outlets this month in Lethbridge, Alberta, and Ste. Foy, a suburb of Quebec City.
This will give the stand-alone home furnishings banner of Sears Canada a total of 48 stores.
All the new stores are based on the Sears Home model rolled out earlier this year at the Whitby, Ontario, store. The new plan is based on an oval traffic pattern in a 35,000-square-foot store selling furniture, bedding and accessories as well as home appliances, kitchen cabinets and floor coverings. The format also features Natuzzi and Sklar Peppler galleries.
Meanwhile, Sears Canada has removed furniture from 24 of its mall-based, full-line department stores, although each of these 123 outlets retains a bedding aisle.
Bruce Watton, the company's national business manager/furniture, admits 2003 has not been a stellar year, but says he's confident the new stores will set Canada's largest furniture and bedding merchant back on a growth path.
"Sales per square foot have been less than our expectations," Watton said, although he said consumer response to the new merchandising programs has been excellent. "We're more than happy with the rate of sales and we're delighted with the look of the new stores."
Over the past few months, Sears has made a number of changes to its merchandising strategy. In addition to the Natuzzi and Sklar galleries, the retailer has launched a brand strategy in bedding while bringing out private-label product lines such as Your Space, Your Style.
"Our goal is not only to leverage those brands but push the customer in the direction of Sears Home," Watton said.
In the first quarter, the retailer will roll out an Alexander Julian gallery featuring upholstery by Canadian producer Décor-Rest and imported case goods from Universal.
Display windows in the front of each store will be changed more frequently in 2004 as the pace of new product introductions quickens throughout the year.
"We want to introduce new product in this area often so as to give the customer something new to look at frequently," Watton said. "All of our merchandising assumptions and all of the transitions we're making on our floors are geared towards making 2004 a growth year."
The publicly held retail giant has already announced it will open a 43,000-square-foot Sears Home store in Regina, Saskatchewan, in October 2004. Watton said another three or four stores also are planned to open in late 2004, but locations haven't been announced.
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