HOFFMAN ESTATES, Ill., June 30 (UPI) -- Sears is spending $620 million to buy as many as 61 "off-mall" sites, the big Illinois-based department store company said Wednesday.
The move to buy or take leases in as many as 54 stores currently held by Kmart and seven from Wal-Mart marks the success of the "Sears Grand" stores strategy.
"These transactions will jump start our strategy to grow the Sears brand off-mall, increase our points of distribution, and acquire well-located real estate at a fair value in key markets for Sears," said Chairman and CEO Alan J. Lacy.
Sears plans to increase the pace of growth for its Sears Grand format, targeting three of the newly acquired Kmart locations for conversion to Sears Grand stores, he said.
Including the previously announced four Sears Grand stores expected to be opened by the end of 2004, the company expects to be operating 12-14 Sears Grands at the end of 2005.
Sears, which will pay the $620 million for the units out of available cash, plans to invest $200 million to remodel the stores, and expects to complete conversions of the majority of the locations by fourth quarter 2005.
