Over the next few weeks, Sears Canada Inc. will unveil the details of a plan to build a $1 billion office and condominium complex on their 3.6 hectare Burnaby location. This move fits with the current trend of retailers capitalizing on their real estate properties; Loblaws and Canadian Tire have both announced plans to create REIT's. The Burnaby location will still feature a Sears, albeit a 100,000 sq.ft. store, compared to the current 140,000 location (Business News).
Sears Canada Locations
Same store sales for the quarter decreased 3.8%.
Total revenue for the quarter decreased 5.0%.
Commenting on the fourth quarter, Calvin McDonald, President and Chief Executive Officer, Sears Canada Inc., said,
"Although sales were lower than last year, our same store sales performance in the fourth quarter improved over the three prior quarters. Home electronics and Craftsman, which includes snowblowers and hardware, contributed to the majority of our sales decline. Though the positive sales trend in major appliances slowed, we continued to add market share. Of particular note was the positive same store sales growth of our apparel and accessories business in the quarter compared to the fourth quarter last year. Inventory quality at the end of the quarter improved compared to the same time last year, as a result of a significant reduction in out-of-season inventory."
Complete report is here
Sears' Response to Increased Competition:
- Introducing online point redemption for Sears cardholders (Canada Newswire)
- Confirmed renovations to over 30 stores in Ontario and Quebec over the next 18 months
- Has launched an app that allows customers to browse Sears products and make purchases from their mobile devices (Canada Newswire)
- Has partnered with savvymom.com to gain a larger share of the baby goods market (Globe and Mail)
- Unveiled new corporate slogan "Make every day a great day", part of a re-branding effort to get consumers to buy Sears products they "want" not necessarily "need" (Globe and Mail)
- Cutting 700 jobs, predominantly at distibution centres, starting February 2013 (Toronto Star)