Sears Canada
Encyclopedia
Sears Canada Inc. (more commonly referred to as "Sears") is a retailer, headquartered in Toronto
, Ontario
, that operates in all provinces and territories across Canada
with a network of 196 corporate stores, 195 dealer stores, 38 home improvement showrooms, 108 Sears Travel offices and a nationwide home maintenance, repair, and installation network. SLH Transport, a freight trucking
company and wholly owned subsidiary headquartered in Kingston, Ontario
, provides the company with transportation and logistics services and comprises 620 trucks, 3,700 trailers, and 900 associates with terminals located throughout Canada. Sears also has a general merchandise catalogue with over 1,800 catalogue merchandise pickup locations. There is a Sears location within a 10-minute drive of 93% of Canadians. About 33,000 associates are employed throughout the company.
, Sears Holdings Corporation
of the United States owns 73.1% of Sears Canada common shares and Pershing Square Capital owns 17.3% of them; the remainder of the shares are publicly traded. As of March 31, 2005, the majority ownership stake was officially transferred to Sears Holdings Corporation (Nasdaq: SHLD).
On September 26, 2007, Sears Canada announced the sale of its Jarvis Street headquarters to the Province of Ontario
. The company relocated its head office to surplus space at its flagship
store in the Toronto Eaton Centre
. Currently the largest Sears stores are located in Toronto Eaton Centre and Pacific Centre
in Vancouver
. In 2010 same store sales were down 4% compared to 6.8% in 2009.
In 1971, the company opened its new head office building in downtown Toronto.
In 1973-1974, Simpsons-Sears opened its first stores in metropolitan areas already served by Simpson's (although in suburban areas well away from the downtown Simpson's stores), the first such being in Mississauga, Ontario
. So, to avoid confusing customers, these new stores were opened under the Sears banner. All existing Simpsons-Sears stores were rebranded to the Sears banner as well. However, the name of the entity remained Simpsons-Sears.
In 1976, Simpsons-Sears inaugurated a Sears store at Galeries d'Anjou, its first location in a mall with a Simpsons store.
acquired Simpsons in 1978. Because of federal competition laws, the Hudson's Bay Company was required to divest itself of its interest in Simpsons-Sears, which had been held by Simpsons, and the chain was formally renamed Sears Canada Inc. in 1984. The Hudson's Bay Company eventually merged the remaining Simpsons stores into its the Bay
division in 1991, and the Simpsons name has disappeared from Canada's retail landscape. As a result of this move, Sears Canada took over eight former Simpsons and Bay stores and finally gained a major foothold in Toronto.
In 1995, Sears Canada opened Sears Whole Home furniture stores located in power centres, and renamed them Sears Furniture and Appliances stores in 1999, to reflect the addition of major appliances. In 2003, Sears Canada again renamed their Furniture and Appliances store to Sears Home stores. This change was intended to reflect their broader appeal for customers seeking a one stop experience for re-making their home decor. The stores' product line was expanded to include Home Installed Products and Services such as floor coverings, customer drapery, and other installed home related products in many locations. Today, these specialty stores are named "Sears Home".
In 1998, Sears Canada's website, www.sears.ca, became an active channel, allowing customers to order from a selection of over 500 products. By 2001, the website became Canada's most popular retail internet destination with over a million orders placed that year.
. With this acquisition, Sears Canada acquired some of the assets and the trademark name of the bankrupt chain. For the first time in its history, Sears Canada held the leases to a number of prime downtown locations in Toronto (Eaton Centre and Yorkdale Mall), Vancouver (Pacific Centre), Victoria, Winnipeg, Ottawa, and Calgary (all former Eaton's stores). Sears had intended to obtain the former Eaton downtown Montreal store but lost out to the incumbent Les Ailes de la Mode
.
Sears relaunched eatons (with the lowercase "e" logo) in November 2000 as a seven-store upscale mini-brand, with locations in Vancouver, Victoria, Calgary, Winnipeg, Toronto (2 locations) and Ottawa. This operation was unsuccessful, however, and Sears converted the eatons stores to the Sears brand in 2002. Many said that the eatons stores were too upscale and/or too thinly scattered across the country for the mini-chain to have ever been profitable and worthwhile. The retail environment has changed with more of the population shopping at big box outlets
and/or specialty stores squeezing out the middle market which is the base of the traditional department store.
In 2005, Sears Card financial services was outsourced to JPMorgan Chase Bank, N.A.
with Sears receiving $3 billion CDN for the sale, while Sears Club points system was retained by the retailer. Sears also paid a special dividend upon the completion of the transaction. CEO Brent Hollister said that the move would allow Sears to refocus on its retail operations; as the chain had been lately relied heavily on its financial services division.
Pertaining to the attempt of privatization on behalf of its parent company, Sears Holdings Limited; a recent ruling by the Ontario Securities Commission
, made in August 2006, has stalled progress on this front. While the ruling does not dispel the future possibility of the privatization of Sears Canada, it does pose a significant obstacle by ruling three major shareholding blocks ineligible to vote as the blocs were given extraordinary privileges by Sears Holdings Limited.
On November 14, 2006 Sears Holdings' move to privatize Sears Canada at a bid of $17.97/share fell through by voting amongst the minority shareholder groups.
Currently Sears Holdings owns more than 70% of the total shares of Sears Canada Inc.
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, that operates in all provinces and territories across Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
with a network of 196 corporate stores, 195 dealer stores, 38 home improvement showrooms, 108 Sears Travel offices and a nationwide home maintenance, repair, and installation network. SLH Transport, a freight trucking
Truck driver
A truck driver , is a person who earns a living as the driver of a truck, usually a semi truck, box truck, or dump truck.Truck drivers provide an essential service to...
company and wholly owned subsidiary headquartered in Kingston, Ontario
Kingston, Ontario
Kingston, Ontario is a Canadian city located in Eastern Ontario where the St. Lawrence River flows out of Lake Ontario. Originally a First Nations settlement called "Katarowki," , growing European exploration in the 17th Century made it an important trading post...
, provides the company with transportation and logistics services and comprises 620 trucks, 3,700 trailers, and 900 associates with terminals located throughout Canada. Sears also has a general merchandise catalogue with over 1,800 catalogue merchandise pickup locations. There is a Sears location within a 10-minute drive of 93% of Canadians. About 33,000 associates are employed throughout the company.
, Sears Holdings Corporation
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...
of the United States owns 73.1% of Sears Canada common shares and Pershing Square Capital owns 17.3% of them; the remainder of the shares are publicly traded. As of March 31, 2005, the majority ownership stake was officially transferred to Sears Holdings Corporation (Nasdaq: SHLD).
On September 26, 2007, Sears Canada announced the sale of its Jarvis Street headquarters to the Province of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. The company relocated its head office to surplus space at its flagship
Flagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...
store in the Toronto Eaton Centre
Toronto Eaton Centre
The Toronto Eaton Centre is a large shopping mall and office complex in downtown Toronto, Ontario, Canada, named after the now-defunct Eaton's department store chain that once anchored it. In terms of the number of visitors, the shopping mall is Toronto's top tourist attraction, with around one...
. Currently the largest Sears stores are located in Toronto Eaton Centre and Pacific Centre
Pacific Centre
Pacific Centre is a shopping mall located in Vancouver, British Columbia, Canada. It is operated by Cadillac Fairview Corporation. Based on the number of stores, many of which are underground, it is the largest mall in Downtown Vancouver with over 100 stores and services...
in Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
. In 2010 same store sales were down 4% compared to 6.8% in 2009.
Corporate history
Simpsons-Sears
Sears Canada began its operations as Simpsons-Sears Limited, a catalogue and mid-market suburban retailer, in 1952. The company was formed as a joint-venture between the Robert Simpson Company (Simpson's), an existing Canadian department store retailer, and Sears, Roebuck and Co. of the United States. The purpose of the joint-venture was to take over the existing Simpson's catalogue operations, and to build new stores in markets that were not already served by existing Simpson's stores, leveraging Sears-Roebuck's strong buying power and organization.In 1973-1974, Simpsons-Sears opened its first stores in metropolitan areas already served by Simpson's (although in suburban areas well away from the downtown Simpson's stores), the first such being in Mississauga, Ontario
Mississauga, Ontario
Mississauga is a city in Southern Ontario located in the Regional Municipality of Peel, and in the western part of the Greater Toronto Area. With an estimated population of 734,000, it is Canada's sixth-most populous municipality, and has almost doubled in population in each of the last two decades...
. So, to avoid confusing customers, these new stores were opened under the Sears banner. All existing Simpsons-Sears stores were rebranded to the Sears banner as well. However, the name of the entity remained Simpsons-Sears.
In 1976, Simpsons-Sears inaugurated a Sears store at Galeries d'Anjou, its first location in a mall with a Simpsons store.
Hudson's Bay acquisition of Simpsons
The Hudson's Bay CompanyHudson's Bay Company
The Hudson's Bay Company , abbreviated HBC, or "The Bay" is the oldest commercial corporation in North America and one of the oldest in the world. A fur trading business for much of its existence, today Hudson's Bay Company owns and operates retail stores throughout Canada...
acquired Simpsons in 1978. Because of federal competition laws, the Hudson's Bay Company was required to divest itself of its interest in Simpsons-Sears, which had been held by Simpsons, and the chain was formally renamed Sears Canada Inc. in 1984. The Hudson's Bay Company eventually merged the remaining Simpsons stores into its the Bay
The Bay
The Bay is a chain of 91 department stores that operate across parts of Canada. It is the main brand of Hudson's Bay Company , North America's oldest company. It has its headquarters in the Simpson Tower in Toronto. In French, the chain is known as la Baie, short for "Compagnie de la Baie d'Hudson"...
division in 1991, and the Simpsons name has disappeared from Canada's retail landscape. As a result of this move, Sears Canada took over eight former Simpsons and Bay stores and finally gained a major foothold in Toronto.
Sears Whole Home and Sears.ca
In 1998, Sears Canada's website, www.sears.ca, became an active channel, allowing customers to order from a selection of over 500 products. By 2001, the website became Canada's most popular retail internet destination with over a million orders placed that year.
Eatons
In 1999, Sears Canada acquired The T. Eaton Company LimitedEaton's
The T. Eaton Co. Limited was once Canada's largest department store retailer. It was founded in 1869 in Toronto by Timothy Eaton, an Irish immigrant. Eaton's grew to become a retail and social institution in Canada, with stores across the country, buying offices across the globe, and a catalogue...
. With this acquisition, Sears Canada acquired some of the assets and the trademark name of the bankrupt chain. For the first time in its history, Sears Canada held the leases to a number of prime downtown locations in Toronto (Eaton Centre and Yorkdale Mall), Vancouver (Pacific Centre), Victoria, Winnipeg, Ottawa, and Calgary (all former Eaton's stores). Sears had intended to obtain the former Eaton downtown Montreal store but lost out to the incumbent Les Ailes de la Mode
Les Ailes de la Mode
Les Ailes de la mode is a Canadian retail store chain. Its flagship store is in downtown Montreal and is the anchor tenant of the Complexe Les Ailes....
.
Sears relaunched eatons (with the lowercase "e" logo) in November 2000 as a seven-store upscale mini-brand, with locations in Vancouver, Victoria, Calgary, Winnipeg, Toronto (2 locations) and Ottawa. This operation was unsuccessful, however, and Sears converted the eatons stores to the Sears brand in 2002. Many said that the eatons stores were too upscale and/or too thinly scattered across the country for the mini-chain to have ever been profitable and worthwhile. The retail environment has changed with more of the population shopping at big box outlets
Big-box store
A big-box store is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store...
and/or specialty stores squeezing out the middle market which is the base of the traditional department store.
New President and Sears Card
On August 26, 2004, Sears Canada Chairman and CEO Mark A. Cohen's contract was terminated and was replaced by Brent Hollister. Cohen was formerly President of Softlines and Chief Marketing Officer of the US parent Sears.In 2005, Sears Card financial services was outsourced to JPMorgan Chase Bank, N.A.
JPMorgan Chase & Co.
JPMorgan Chase & Co. is an American multinational banking corporation of securities, investments and retail. It is the largest bank in the United States by assets and market capitalization.It is a major provider of financial services, with assets of $2 trillion and according to Forbes magazine is...
with Sears receiving $3 billion CDN for the sale, while Sears Club points system was retained by the retailer. Sears also paid a special dividend upon the completion of the transaction. CEO Brent Hollister said that the move would allow Sears to refocus on its retail operations; as the chain had been lately relied heavily on its financial services division.
Privatization
In January 2006, Sears Holdings Inc, the parent company and majority shareholder of Sears Canada Inc. made a bid to purchase the remaining shares to take the company private. Some members of the board opposed the move.Pertaining to the attempt of privatization on behalf of its parent company, Sears Holdings Limited; a recent ruling by the Ontario Securities Commission
Ontario Securities Commission
The Ontario Securities Commission is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario...
, made in August 2006, has stalled progress on this front. While the ruling does not dispel the future possibility of the privatization of Sears Canada, it does pose a significant obstacle by ruling three major shareholding blocks ineligible to vote as the blocs were given extraordinary privileges by Sears Holdings Limited.
On November 14, 2006 Sears Holdings' move to privatize Sears Canada at a bid of $17.97/share fell through by voting amongst the minority shareholder groups.
Currently Sears Holdings owns more than 70% of the total shares of Sears Canada Inc.
See also
- List of Canadian department stores
- Sears Holdings CorporationSears Holdings CorporationSears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...
- Sears, Roebuck and CompanySears, Roebuck and CompanySears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
- Sears Roebuck (Mexico)