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Sears to experiment with smaller appliance stores

Despite the struggles Sears and Kmart have to remain competitive, the company continues to seek and roll out new ideas to attract shoppers in stores and online.

One such concept is a smaller appliance store scheduled to open next week in Fort Collins, Colorado, an area that doesn't have other Sears or Kmart stores, Sears Holdings Chairman and CEO Edward Lampert said at a meeting with shareholders.

The new store will be about 10,000 square feet, much smaller than a typical Sears store at 138,000 square feet.

"It's going to be an integrated experience and offer the best products in that category," Lampert said at the Hoffman Estates headquarters Wednesday. He declined to provide further details of the concept or other new locations until its debut.

The smaller format is an experiment and a chance to attract and engage more shoppers, Lampert said.

The company hopes the idea will help it return to profitability. The struggling retailer last month announced it was closing 68 Kmart and 10 Sears stores, although none were in the Chicago suburban area. When these stores close this summer, Sears Holdings will have about 1,500 stores left.

Lampert said his priority is to attract more shoppers, provide what they need and boost profits. He added that he would not rule out re-evaluating the corporate structure and establish more partnerships with other retailers and services in the future.

"Seeking profitability is a difficult challenge in retail," Lampert told shareholders. He mentioned JCPenney, Fossil and other stores that have all reported similar struggles.

Lampert aims to continue building the Shop Your Way online marketplace, which offers more products and more perks to loyal customers from various businesses.

He's also looking to reduce expenses, pay off loans and possibly amend corporate agreements that could help boost the bottom line. "There's a lot of good we'd like to keep but a lot we need to change," he said.

Lambert said he believes businesses should partner with each other. Such partnerships can help fulfill the needs of customers and build company loyalty. Some of their more recent partnerships have included moving retailer Forever 21 into extra space in its Sears store in Costa Mesa, California. And Sears in Clearwater, Florida, provided extra space to Whole Foods.

Whether those partnerships work online, or combining stores in one, or even the new smaller appliance store in Colorado proves successful, is yet to be seen. Back in December 2012, the Sears Fitness concept store opened in Northbrook, but it then closed in July 2014.

While all new concepts and ideas include risk, the innovative move shows that the company hasn't stopped trying and continues to strive ahead, both online and in stores.

"Our reputation will change when we get these things to change," Lampert said.

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Sears Holdings Chairman and CEO Edward Lampert talked with shareholders on Wednesday, saying he's open to more restructuring and partnering with other retailers. He also mentioned a new concept store of about 10,000 square feet set to open next week in Colorado. DAILY HERALD FILE PHOTO
Sears Holdings Chairman and CEO Edward Lampert talked with shareholders on Wednesday, saying he's open to more restructuring and partnering with other retailers. He also mentioned a new concept store of about 10,000 square feet set to open next week in Colorado. DAILY HERALD FILE PHOTO
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