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Sears Takes Steps (Fashion) Forward

Written by George Anderson
By George Anderson

A series of announcements over the past month could give someone the impression that Sears Holdings is serious about improving its standing in the apparel and accessories business.

Sears recently launched its "The Many Sides of Me" campaign to begin positioning the department store as a fashion destination.

"We have executed against a range of initiatives tied to our strategic pillars that have improved our relevance to customers, including engaging them on a personal level," said Scott Freidheim, executive vice president, operating and support businesses for Sears Holdings, in a statement. "With this launch, we're on a path to 'Feminize, Energize and Digitize' the Sears soft side brand positioning."

Earlier this month, the Chicago Tribune reported Sears planned to remodel clothing departments in 200 stores in the Chicago, Los Angeles, New York and Washington, D.C. markets. The company has come under criticism in the past for failing to put needed dollars into stores to improve the shopping experience.

Sears also announced a deal to sell an exclusive line of women's, men's and children's clothing under the UK Style by French Connection brand. The brand will be available in 500 Sears stores beginning in the first quarter of 2001. It will also be available on Sears.com.

John Goodman, executive vice president of apparel and home for Sears Holdings, said in a statement, "This addition to our brand portfolio will significantly increase our relevance among younger customers while strengthening our effort to re-energize our fashion offerings at Sears."

Sears.com looked overseas for another exclusive deal. This week the company announced it had partnered with NEXT, a popular fashion retailer in the U.K., to sell its clothing, shoes and accessories online.

"Whether you're shopping online or in-store, Sears continues to offer credible brands for customers," said Imran Jooma, president of e-commerce at Sears Holdings, in a statement. "By bringing must-have fashion statements from brands like NEXT, our customers will be able to shop for international styles, all in one place at Sears."

Also soon to be found at a Sears in Costa Mesa, Calif. is a Forever 21. The Wall Street Journal reported that Sears had agreed to lease about 15 percent of its store space for Forever 21 to operate a store-within-the-store.

Michael Dart, senior partner at Kurt Salmon Associates, told the Journal, "For some time, Sears has been managed to conserve cash, and has not seen a lot of investment in upgrading its stores or providing a good shopping experience, particularly for a younger, trendier consumer." The addition of Forever 21, he said, "brings a new vibe and is something of a crowd draw."
         
Sears is expected to explore more such deals.

"We want to optimize and leverage our real estate portfolio to third-party tenants," Kimberly Freely, a spokesperson for Sears, told the Journal.

Discussion Question: Is Sears Holdings on the right path with its soft lines business?

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