CHICAGO (CBS.MW) — Investors pushed shares of Sears Roebuck modestly higher after the department-store retailer said Monday that it bought the Structure brand from Limited Brands for less than $10 million.
saw its shares finish the session at $43.87,up 35 cents, or 1 percent. Limited
chalked a similar percentage gain, adding 19 cents to $15.97.
As a Limited brand, Structure sold a trendy men’s apparel line in stand-alone stores that have since be refitted to Express for Men. Sears said Structure merchandise will be in Sears stores by the end of next year and that the line could possibly be expanded over time.
The move comes amid a rollout of private-apparel brands in recent months in the Hoffman Estates, Ill.-based company’s department stores. These include Lands’ End, Covington, CBR and, just last week, a new women’s apparel line called Lucy Pereda.
“We are very excited to be able to acquire this powerful brand,” Mindy Meads, executive vice president of Sears apparel, said of Structure. “From our research, Structure has very strong recognition with a slightly younger customer, ages 20 to 35, who like an updated fashion style.
“It fits nicely and complements our other brands on the floor, particularly Lands’ End,” she added.
Indeed, Lands’ End and Structure are on opposite ends of the fashion belt, giving Sears a broad range of established clothing lines. Sears bought Lands’ End a year ago and recently completed outfitting all of its stores with the popular casual-wear merchandise.
Meads said the Structure line will be in Sears stores by the end of next year and will likely have its own space, similar to the Lands’ End sections in department stores now.
Initially, Sears will keep Structure as a men’s apparel line but could add accessories or even broaden it to a women’s line in the future. “We will continue to look for options,” she said.
“We are clearly focused on strengthening and broadening our apparel offering to new and existing customers,” she said.
View more information: https://www.marketwatch.com/story/sears-roebuck-adds-structure-brand-to-apparel-portfolio