Sears looking for dealer-store growth in small towns
CHAMPAIGN – In an age when many retail chains are downsizing, Sears is looking to expand its network of dealer-owned stores in small towns – including several in East Central Illinois.
Specifically, Sears is looking for people interested in opening Sears Dealer Stores in Clinton, Monticello, Paris, Rantoul and Watseka, said Jon Phillips, director of new store development for Sears Dealer Stores.
The stores don't carry the full scope of merchandise sold at Sears department stores, such as those in Champaign, Danville and Mattoon, he said. Instead, they concentrate on appliances, lawn-and-garden equipment and tools.
So far, Sears hasn't lined up firm arrangements for any of those communities, Phillips said. But it recently finalized plans for a store in Lincoln that's expected to open next month.
Doug Shumard, a Monticello native who's opening the Lincoln store, said he considers it a great opportunity for himself and his family. The store, which will carry batteries, mattresses and exercise equipment, among other things, is scheduled to open Aug. 6 in a former Sears store that closed 12 years ago.
Shumard, who previously owned an oil-change business for 20 years, said he's projecting $1.3 million in annual sales for the new store, with $1 million of that already being spent at Sears. The closest Sears stores to Lincoln are in Bloomington, Forsyth and Springfield, he said.
Lincoln has two other appliance stores and a Wal-Mart, Shumard said, but they don't have the Sears brand names.
"Craftsman is Craftsman, and Kenmore is Kenmore," Shumard said. "Nobody has that but Sears."
Sears dealers generally need to make an investment of $55,000 to $100,000 in their business, according to the Sears Dealer Stores Web site. But they don't have to pay fees or royalties to Sears or bear the costs of transporting merchandise.
"A big part of the expense is the property," Shumard said. "I had to do extensive remodeling."
Shumard recently finished 10 days of training and expects to receive more before the store opens. He's not sure how many employees he'll need, but projections suggest six to eight.
Phillips said dealers don't pay Sears for the rights to operate a Sears Dealer Store. They do have to find a location acceptable to Sears – generally 8,000 to 10,000 square feet, with 6,000 to 8,000 square feet devoted to selling space.
Under the arrangement, Sears pays the dealers commissions on what they sell – generally 10 percent of the sales price – with additional bonuses possible, he said.
Phillips said Sears is looking to get back into smaller communities, with the hopes of reconnecting with customers who may have been shopping elsewhere. The Hoffman Estates-based retailer figures that in view of high gas prices, many customers don't want to drive a great distance to shop, he added.
Sears has 875 dealer stores across the nation, in every state but Hawaii. That's actually five more than the number of Sears department stores, Phillips said. There are 27 dealer stores in Illinois, including locations in Jacksonville, Macomb, Morris, Ottawa and Pontiac.
Phillips said the dealer-store concept was launched 15 years ago, when Sears was dismantling its catalog-store network. More than 100 of those stores were converted to dealer stores, and 65 of the original owners are still part of the dealer network, he said.
Information about operating a dealer store is available at www.searsdealerstores.com or by calling Phillips at 847-286-8062.
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