The Energon Pub

News Credits: 349 · Wed Aug 12, 2009 11:16 pm

http://www.reuters.com/article/companyN ... WZ20090811

WILMINGTON, Delaware (Reuters) - Sears stuck its toe back into the toy business on Tuesday, with 20 stores clearing space for kids to interact with the latest best-sellers and nostalgic throwbacks like tin tops.

The retailer hopes the toy departments will fill a void left by the demise of mall specialty stores such as KB Toys.

"That's what we're hearing more and more from our core consumer, that they would like to buy (toys) in the mall," said Julia Fitzgerald, chief marketing officer for Sears' toy business.

Sears, a unit of Sears Holding Corp (SHLD.O), plans to dedicate about 1,500 square feet of floor space in each of the 20 stores and offer roughly 600 different items.

The venture returns Sears to a segment with which it has a rocky history. Earlier this decade, Sears experimented with "store-within-a-store" partnerships with KB Toys, but ultimately pulled the plug.

Since KB Toys went out of business earlier this year, closing its 460 stand-alone stores, a niche has opened for Sears, Fitzgerald said.

Sears operates 929 department stores.

Popular toy destinations now include stand-alone stores like Toys "R" Us, as well as discounters Wal-Mart Stores Inc (WMT.N) and Target Corp (TGT.N).

Fitzgerald said Sears will carry toys made by Hasbro Inc (HAS.N) and Mattel Inc (MAT.N) as well as Leapfrog Enterprises Inc (LF.N), which makes educational toys, and Schylling, a maker of retro products such as tin jack-in-the-boxes.

Sears Holdings, formed in 2005 when hedge fund manager Edward Lampert merged Sears and Kmart, has struggled to sell its mainstay Craftsman tools and Kenmore appliances amid a housing market crash.

The other focus of its retail operations, its apparel business, has been squeezed by discounters such as Wal-Mart and Target and a slumping economy. As a result, analysts have said Sears has a glut of floor space in most locations.

Sears has been experimenting with different pathways to growth, such as offering lay-away plans and letting customers buy online and return or pick up in stores.

The company's shares, which have doubled since the stock market bottomed in early March, were down 2.1 percent at $75.32 in afternoon Nasdaq trading.

Wed Aug 12, 2009 11:22 pm

Finally. From what I can remember from when I was a kid, my dad bought several G1 figures from Sears. I remember looking through the Sears catalog and picking out the toys I wanted for Christmas.

News Credits: 1 · Wed Aug 12, 2009 11:54 pm

The Sears nearest to me already has a toy section. Although it's TF selection is always behind the times.

Thu Aug 13, 2009 12:01 am

Awesome, I remember Sears having a small toy section where my parents purchased a Power Wheels Jeep and The Joker's Van from the Tim Burton Batman film.

Thu Aug 13, 2009 12:08 am

Damn just Transformers and Leapfrog crap where's the love for Power Rangers and other action figures of the like?

Thu Aug 13, 2009 12:22 am

the Sears stores in my city always had a toy section, granted its always been pretty crappy and small but yeah...it never disappeared. lol

News Credits: 462 · Thu Aug 13, 2009 12:33 am

It sure will feel good to be able to walk into a mall with a store that sells action figures again.

News Credits: 4 · Thu Aug 13, 2009 12:48 am

nice! i remember the last time i saw TFs at sear was about when the TF movie came out in 07.... they had movie and cybertron figures

News Credits: 1 · Thu Aug 13, 2009 12:51 am

one more stop along the road while searching for desired Transformers.

Thu Aug 13, 2009 1:32 am

this is exciting to know my father is a tailor and at the time when i was a kid in the 80s my dad worked at the sears in oak brook illinois in the tailor shop they dont have a tailor shop no more and i can remember he bought me the g-1 optimus prime that i still have today mint box and mint prime i have about 97% of my g-1 toys still with packages that now sit displayed.

News Credits: 9 · Thu Aug 13, 2009 1:58 am

Sears stopped selling toys? News to me. and to the number of pieces in my collect bought at sears over the last few years.

Thu Aug 13, 2009 2:51 am

Hmm... one wonders if Sears may be granted repaint exclusives like its retail chain brethren...

News Credits: 104 · Thu Aug 13, 2009 5:55 am

I am going to show my age here..

I remember buying original Battlestar Galactica merchandise in the late 70's from Sears.. Around 84 I remember picking up Gi Joes, Transformers, Atari 2600 and Cloecovision games from Sears.

Good memories..
Glad to see that some of them will carry toys again full time (the ones down here only stock "selected" toys at Christmas time.

News Credits: 11 · Thu Aug 13, 2009 7:21 am

They actually tried to bring back toys full time about 2 years ago at most locations. It fizzled away and some stores just gave back up. Thats why they are only doing 20 stores now and making such a hoopla.

Its gonna end up being old stuff, never stocked properly. Cant ask anyone to check stock because they dont care enough.

Thu Aug 13, 2009 7:32 am

I what the 20 stores are I am not going to drive all the way to Wilmington but I will check out the store in Prices Corners. I doubt they will put toys in the Newark store.

Thu Aug 13, 2009 7:42 am

yep, i work as a hardware salesman at sears,...and I'm gonna be that guy walking over after work and hiding the figures I want until they sit there long enough to go from 50 bucks down to 5 bucks heh.

News Credits: 5 · Thu Aug 13, 2009 8:00 am

hmmmm, wish I had a sears nearby...

Thu Aug 13, 2009 9:07 am

Its basically going to be the Bay all over again. They had tfs that were so far behind that when alternator line ended they still had the original wave, sideswipe and smokescreen on their shelves, I dont think they ever got rid of them until they closed the toy section last year or year before, man I lose track of time quickly. This is a bad idea for Sears to do this, waste of money and time, most of the Sears around here have toy sections at Christmas and its always over priced old stock and as soon as Christas is done i think the either clear it out or rebox and bring out next year.

News Credits: 21 · Thu Aug 13, 2009 9:34 am

i dont like if they plan on doing this they should od it for all toys gijoe batman powerrangers barbie & another thing i have a feeling that there selection will suck same as walmart toy aisles.

funny thing i was at walmart i was looking at transfomrers there i heard customer saying lets go there selection isnt as big as toyrus that was funny for someone who shops there

News Credits: 1 · Thu Aug 13, 2009 10:16 am

Neat! I guess I will be walking into a Sears for the first time since being dragged around with my parents looking for appliances.

News Credits: 11 · Thu Aug 13, 2009 10:16 am

Interesting. Canada's Sears stores have had toy sections for as long as I can remember, although they just did a major downsizing, and then broguth it back again.

Thu Aug 13, 2009 10:49 am

My Sears already has a toy section, it's not hude, but a good size. 'Cept, they have always been weird about what they have in stock. I can literally still find Classics anytime I want there. It's great

Thu Aug 13, 2009 11:28 am

Eeeeenteresting...

Thu Aug 13, 2009 11:58 am

Sears being the same company as K-Mart does not bring me hope for a well stocked, clean, and fairly priced selection of TFs. But I'll stop by and look.

Sears Holdings, formed in 2005 when hedge fund manager Edward Lampert merged Sears and Kmart, has struggled to sell its mainstay Craftsman tools and Kenmore appliances amid a housing market crash.