Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, January 11, 1994 TAG: 9401110039
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Medium
True, Sears, Roebuck & Co. never really left the mail-order business. Even though it scrapped its Big Book - the last order was taken at its Roanoke telecatalog center in May - it kept Power & Hand Tools and Home Health catalogs.
Monday, the retailer said three new specialty catalogs will be mailed to Sears customers this month: Show Place, featuring bed and bathroom accessories; Great Kitchens, offering kitchen accessories and table-top appliances; and Beautiful Style, with After 5 women's apparel in sizes 14 and larger.
Sears' new catalog effort is through its Sears Shop At Home Services division. Its partner in the venture is Hanover Direct Inc., another company with a Roanoke Valley connection.
Hanover, which last week said it will bring its Domestications catalog-fulfillment center to Roanoke County and last year bought the Tweeds mail-order operation at Bonsack, has been licensed to develop the Sears catalogs. It has formed a subsidiary, Hanover Ventures Inc., to market and merchandise the catalogs.
Sears' main involvement appears to be lending its name.
"We will be using existing buying staff, computer systems, warehousing and fulfillment operations to serve the Sears customer," said Jack E. Rosenfeld, president and chief executive officer of Hanover Direct.
Hanover officials would not comment on whether any of Sears' business will be handled at Tweeds' 175,000-square-foot catalog center in the Roanoke-Botetourt Industrial Park. However, such a possibility seems to fit with comments Rosenfeld made last week.
He said one reason Hanover Direct bought Tweeds last year was because its fulfillment center was "underutilized." The center is operating at less than 50 percent of its capacity.
Rosenfeld also said Hanover, in addition to the new facility for its Domestications catalog, would move some of its other 14 catalog operations to the Tweeds site.
In addition to the three catalogs Hanover will market in Sears' name, Sears Shop at Home is test-marketing six that include apparel in large sizes for men and women, leather apparel, men's work wear, and licensed NFL and NBA sports apparel.
Both companies made announcements of their venture Monday and said that in their agreement Sears may purchase up to 7 million shares of Hanover Direct common stock in 1999 at $10.57 per share, if certain sales and earnings targets are met.
The shares represent about 10 percent of Hanover Direct shares currently outstanding.
by CNB