Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, February 12, 1993 TAG: 9302120218
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
SEARS SETS $4 BILLION OVERHAUL
Sears, Roebuck and Co. executives on Thursday laid out plans to revitalize the stagnant retailer, saying they'll spend $4 billion to renovate stores, revamp merchandise strategy and seek outside help.The company said it was done with drastic measures such as the 50,000 layoffs, 113 store closings and shutdown of its big catalog operation announced last month. But some further job losses appeared likely.
What's ahead is a reworking of Sears' approach to retailing, a step many consider long overdue.
"The repositioning and marketing of the whole store image needs considerable attention," Arthur Martinez, chairman of the Sears Merchandise Group, told securities analysts and reporters.
Martinez, who joined Sears six months ago from Saks Fifth Avenue, instigated the restructuring announced Jan. 25. A series of earlier overhauls, while cutting thousands of jobs, had failed to reinvigorate the merchandise group.
Sears' sales have improved in recent months, but the merchandise unit's profits have been lackluster. The analysts' meeting came two days after Sears announced a $3.9 billion loss for 1992, due largely to accounting changes, its retail restructuring and severe losses in its Allstate insurance business from Hurricane Andrew.
Martinez talked about going outside Sears for new merchandising blood - something unthinkable at a company that has relied on home-grown talent for 103 years.
He said Sears also would begin stocking stores according to their individual needs, giving the company a market-by-market and less national approach.
The retailer, which this week realigned its business into three core segments - apparel, home and automotive - will try to play up the strengths in each area.