Sears, Roebuck is looking to grow home-goods sales by adding stores away from malls as shoppers flock to new retail centers.
That off-mall strategy includes more dealer stores located in smaller, rural markets, and home appliance showrooms in big cities.
Sears has about 860 dealer stores and 24 appliance showrooms, in addition to its more than 900 traditional mall-based stores. This year, the retailer is adding 75 dealer outlets and about 50 appliance showrooms, said Steve Titus, vice president of Sears Dealer Stores, in an interview.
The Hoffman Estates, Illinois, retailer is the top-selling U.S. appliance chain but has seen its dominance challenged as home-improvement stores such as Home Depot and Lowe’s expand their offerings.
Now, as Home Depot and Lowe’s cut their store growth in the slowing U.S. economy, Sears Holdings is looking to grow key businesses in hopes of benefiting when conditions improve.
The appliance showrooms (pictured), which include as much as 5,000 square feet, are located in high-traffic retail strips that also include other big-box stores such as Target.
Sears is hoping the appliance showrooms, which are currently in Minneapolis, Dallas, Houston, Atlanta and some other big cities, will help fill the gaps in areas not served by its mall stores or existing dealer stores.
“If we pull this off right, it could really help us grow our appliance business,” Titus said.
The dealer stores are locally owned and operated. Owners pay rent and expenses and Sears provides the products and pays a commission for selling them.
Even in the slow economy, “we have several hundreds of people requesting ownership of these stores right now,” Titus said.
Photo/Sears

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