As Sears (NASDAQ:SHLD) Canada is trying to fight off invigorated and new competition from Target (NYSE:TGT) and Marshall's (NYSE:TJX), it's abandoned key product lines and, still, "we don't have our balance 100 percent right," CEO Calvin McDonald told investors late last week. "There are still businesses that we're in today that are struggling, declining in the marketplace and we need to reset."
Having been trying to reshape Sears Canada for a year and having cut about $100 million from operations thus far (including some 700 associate layoffs and the closing of four key stores), McDonald said that he sees the changes as only half done.
Target opened its first stores in Canada last month (the first for the chain anywhere outside of the U.S.). "If we want to remain relevant, we've got to continue to adjust," McDonald said, according to The Winnipeg Free Press.
Gone from its main department stores will be electronics and window coverings. Toys are now sold only online, and more changes are in the works, like a scaled down selection of its Craftsman hardware products. "We are going to potentially exit something in retail, but play it very heavy in another channel," he said. Sears will substitute those lines with a wider selection of seasonal offerings and outdoor products, for example.
McDonald said Sears is making inroads with a younger shoppers, helped by promotional materials like its Look Report magazine, which touts its seasonal clothing selection. About 40 percent of shoppers who purchased items from the Spring edition were under 44, he said, an increase from 16 percent in February before the issue hit stores.
- See Winnipeg Free Press story
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