Land's End--a bright spot at Sears

Sears stock is up about 66% this year, making it a top performer in the S&P 500.  The retailing behemoth will announce its quarterly earnings this week.  My recent Sears experiences suggests that Sears will have a hard time attracting new customers.  Perhaps it can hold on to existing customers, but the shopping experience will have to evolve to attract new customers in the competitive middle market.

A few weeks ago I had a return from the Land's End catalog, so I popped into Sears.  I don't shop much in department stores.  I spent the summer between high school and college behind a makeup counter in a now-defunct department store.  I find the lack of natural light dispiriting and the layout confusing.  In sum, I recognize that I am not the core Sears customer.

When I walked into Sears through a side entrance with my 18-month old, she stopped, pointed, and yelled "wow!"  She was taken by a display of a headless mannequin sitting on a riding mower.  I wonder if there is much demand for mowers during the Minnesota winter.  The rest of the first floor also felt strange--an immense display of plastic storage bins, what struck me as a make-shift coffee shop, tools, more mowers, and washing machines.

We navigated our way to the escalator, which deposited us on the second floor.  The jewelry and cosmetics section were tightly packed onto the same floor pad, leaving little room for browsing.  The cosmetics section featured displays like a drug store or mass merchandiser.  The impression I had was of clutter, and I wondered why consumers choose to shop at Sears.

Then we came to our destination--the Land's End Shop.  The space opened up.  The department was easy to navigate, as the merchandise was logically grouped.  Even the signage featured the updated preppy look that is Land's End signature.  When I stood in the Land's End department, I got the story Sears was trying to tell me.  It seemed genuine and consistent with the Sears brand.  Sure, if you don't like the navy-and-white sailor look, the brand isn't for you.  But the merchandising, presentation, and signage all created a pleasant shopping experience.

Land's End is a bright corner in a dreary box.  Sears highlighted Land's End's strength during the 2011 holiday despite dismal overall sales.  The Land's End brand demonstrates that Sears has the ability to execute well.  How can it leverage this in other departments in the store?

I suspect Sears stock will have a rough week this week, and I can't imagine that one brand will be enough to spark a turn-around in this once-great retailer's decline.