Design online at Sears Canada
Furniture Today Staff -- Furniture Today, May 26, 2011
TORONTO — Sears Canada will soon give consumers the ability to design their own furniture over the Web as part of an effort not only to attract younger consumers but also to expand its dominant market position in big ticket home goods.
Speaking at the multi-channel merchant's recent annual meeting here, President and CEO Dene Rogers said Sears already is Canada's largest e-commerce player and is looking at a number of ways to be more attractive to young, tech-savvy consumers.
In what proved to be a tough 2010, Sears said its online sales grew in the double digits during the fourth quarter, which includes the critical holiday shopping season. However, the company's overall revenue fell more than 3% during the same period.
Historically, Sears Canada has been one of the largest retailers of furniture and mattresses in the country, with the categories accounting for an estimated 8% to 10% of total sales. Before the rise of Sleep Country Canada, it also was considered the top mattress merchant in the country.
For the fiscal year that ended Jan. 31, Sears Canada's total revenues of C$4.96 billion were down 4.7% from the previous year, with same-store sales declining 4%.
Net earnings for the fiscal year were C$149.8 million or C$1.40 per share, versus C$234.7 million or C$2.18 per share the prior year, a decline of 32.5% on a per share basis.
In its annual report, the company said it still "has the largest market share in major appliances and furniture as measured by dollar sales," and is pursuing new initiatives to grow its business in these categories.
Among them is the rollout of the Thomasville brand, which the retailer said "offers a more traditional, classic wood look for customers who desire top quality and intricate styling detail." Several items from the U.S.-based manufacturer, a division of Furniture Brands International, can be found on the Sears Canada website.
Sears has also added Italsofa from Italian upholstery specialist Natuzzi, believing the line's sleek, modern styling appeals to the younger-minded consumer.
To appeal to a more suburban clientele, Sears has also added Paula Deen Home - named for the U.S.-based celebrity cook and TV personality - which features furniture with a practical bent. "The storage and functionality built into the designs such as additional hanging racks, hidden storage, and wire management systems are geared to the lifestyles of today's busy professionals who are challenged for space in their homes," the company said.
Sears also has expanded its Whole Home assortment and is offering more choice in finishes, chair styles, leg design, aprons and hardware, most of which can be delivered to the customer in six weeks or less. In 2011, Sears will add a luxury shop to its Sears-OPedic mattress brand, after customers "responded positively" to the introduction of the Stearns & Foster and Simmons Beautyrest luxury mattress brands last year.
Just as in furniture and mattresses, Sears Canada has long been a dominant player in household appliance retailing, flooring not only most of the major brands but its own Kenmore line as well.
The company said it intends to stick with its traditional strategy, which includes low prices and advantageous financing as well as one of the most unusual extended warranty programs in the industry. If such a warranty is unused at the end of the coverage period, the customer will receive 100% of its cost as a credit towards any Sears' merchandise of their choice.
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