Sears Hometown 'store-within-a-store' gains momentum

Since launching its scaled-down "store-within-a-store" dealership opportunity in 2014, Sears Hometown and Outlet Stores Inc. said Thursday it has expanded into 15 independent retailers with three more in development for 2016.

An extension of Sears Hometown and Outlet Stores' conventional Sears Hometown Store model, the "store-within-a-store" program reaches more communities with a void in the home appliance retail space. Through this partnership, independent retailers have the opportunity to offer the 10 top appliance brands - such as Kenmore, Maytag, KitchenAid, Whirlpool, Bosch, Frigidaire and GE - and full product lines in store and through the Sears website, with no fees or royalties paid to Sears Hometown and Outlet Stores, Inc. Merchandise options include an appliance-only format or appliances with tools and lawn & garden equipment.

The "store-within-a-store" program is gaining popularity as independent home retailers seek various methods to diversify revenue streams, and this program allows them to do so with product lines that complement the store's existing product assortments. Requiring at least 2,000 square feet of available retail floor space, through the program store owners are better able to cater to consumer demands without having to purchase inventory. All inventory is provided by Sears Hometown and Outlet Stores on consignment to the owner, therefore store-within-a-store partners are not required to pay for inventory or freight expenses.

"The response to the 'store-within-a-store' program has been overwhelmingly positive from our partner retailers and their loyal customers," said Rohit Jacob, divisional vice president of store development at Sears Hometown and Outlet Stores. "We're providing independent retailers the opportunity to turn their extra space into profit by offering customers related home products that complement their existing sales floor. As more independent retailers learn about the success of this program from others within the industry, we expect many more to jump at the opportunity."

The company is looking to partner with strong, suburban or rural businesses that have product offerings aligned with the Sears Hometown Store's collection. Sears Hometown Stores covers the cost of adding exterior signage, marketing and advertising, meanwhile store-within-a-store partners must dedicate a few employees to serve as brand certified sales associates. Customers benefit from having access to well-known brands, as well as all the perks that are typical of other Sears stores, including Shop Your Way Rewards, Sears Credit, Sears protection agreements and more.