Sears expands with Kmart and Wal-Mart Sites
US retailer acquires 56 new stores
US retailer Sears, Roebuck is expanding by taking over stores from both Kmart and Wal-Mart.
In what it said was the largest full-line store growth in its history, the mid-market department store retailer completed the acquisition of ownership or leasehold of 50 stores from Kmart for $575.9m, and also announced that it is taking over six leases from Wal-Mart.
Sears will take possession of the stores in spring 2005, with the majority converted by the fourth quarter of 2005 to the Sears brand. The company said the stores will give it a stronger presence in markets where the opportunities to find new sites for store growth would be limited.
The deal allows Sears to roll out a new mid-sized store format which will provide customers with its traditional product categories, such as apparel, electricals, home improvement and homeware, with a single floor, one-level design.
Alan Lacy, Sears chairman and CEO, said: “The completion of this transaction moves Sears another step closer to its strategic goal of growing our store base and the Sears brand off-mall. We look forward to an increased presence in these key markets and serving new and existing customers.”
Jerry Post, senior vice president, Sears off-mall strategy, said: “Opening more doors in these strategically selected locations allows Sears to compete more effectively and operate in areas closer to the customer. With these new locations, plus the Sears Grand stores already in development, we will quickly open more doors and dramatically boost our off-mall retail presence in attractive markets.”
