Sears set to return to the toy market after decades of not being in it

Posted Jul 31st 2009 4:30PM by Brian White
Filed under: Competitive Strategy, Sears Holdings (SHLD)

Sears Holdings Corporation's (NASDAQ: SHLD) storied and failed strategy in the last few years under the auspices of investor Eddie Lampert just keeps chugging along. Lampert thought he could turn Sears Holdings into an investment company that happened to have a retail operation attached. Didn't happen.

But, that does not mean Sears is giving up the ghost. The retailer everyone loves to dog as stodgy and out of touch is getting back into one business where it was decades ago: toys. That's right -- and just in time for the 2009 holiday season. Question: will anyone go out of their way to shop at Sears for toys? Is there a compelling reason with so many other quality choices?

Sears must be looking to gain some incremental holiday sales here. Discounters like Wal-Mart Stores, Inc. (NYSE: WMT) and Target Corporation (NYSE: TGT) -- not to mention leading toy retailers -- are making competition for holiday dollars as fierce as it's ever been. So, it makes perfect sense for Sears to unveil toy sections in its stores sometime around August 15th. Yes, that's a joke.

An entire generation of toy shoppers who have never shopped at Sears for toys are somehow going to be summoned there? It won't be national at first -- Sears locations in San Francisco, Chicago and New York metro will be the first lucky recipients of in-store toy sales. Well, in-store toy displays -- it's hard to see Sears turning into anything close to a semi-powerhouse in toys for the rest of 2009 or beyond.

Tags: inthenews, Sears, Sears Holdings, Sears Roebuck, Sears toys, SHLD

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Reader Comments (Page 1 of 1)

7-31-2009 @ 9:09PM

bubawa32 said...

SEARS WAS THE STORE =1960 TO 1985 = THE SEARS
TOY CATALOG =EVERY FAMILY HAD ONE=THE KID;S
SAT FOR HOURS ENJOYING EVERY PAGE &THE WISH
BOOK =AHHH =THEM DAY'S WE'RE THE BEST DAY'S &
EVERY ONE HAD A JOB & COULD AFFORD TO MAKE THE
DREAM COME TRUE FOR THEIR FAMILY ====THEN ==
???????? IT'S A SHAME FOR THE GRAN KID'S WHAT
HAVE THEY AFTER WE'RE GONE
THINK ABOUT IT =====

8-01-2009 @ 6:56AM

rwills2998 said...

Good for Sears. if they sell high quality toys I will buy there. Recently purchases toys at Toys R Us for my grandchildren 3 days later they all were trash.

8-01-2009 @ 9:10AM

Howard N. Wolff said...

Great. Sears and Montgomery Wards used to carry real toys that were fun, durable, and educational. I grew up on Montgomery Ward money. It is too late for Wards, but I hope Sears can bring some high quality toys back to the market. It is time that toys, once again, teach children, and prepare their minds for real jobs. Toys can actually cause kids to "think".