Get Down

Despite the blustery 17 degrees F weather, the crowd began forming early at the Golf Mill shopping center in Niles, Ill. When the doors at the Sears, Roebuck store finally opened at noon, customers were welcomed with coffee, cake and brightly colored balloons. From Waikiki to Watertown, N.Y., crowds poured into Sears' 823 outlets last week to see firsthand the transformation of America's largest retailer. After closing its stores for 42 hours -- the longest weekday shutdown in the retail chain's 103-year history -- Sears permanently slashed prices by as much as 50% on 50,000 products, or about three-fourths of its inventory.

With one sweeping markdown, Sears hoped to regain the loyalty of customers who have drifted to such discounters as K mart and Wal-Mart. Abandoning its decades-old philosophy of luring buyers with frequent sales, Sears is turning to "everyday low prices." To put new price tags on 1.5 billion pieces of merchandise, Sears recruited a temporary army of retirees and high school students. Together with regular Sears employees, the price changers wielded 29,000 label guns. Said Chris Skinner, a high school freshman who worked at the Sears outlet in Columbus' Northland Mall: "The worst was the screwdrivers. You had to take them all down, clean each one by hand, then put them all back."

On its first day as a full-time discounter, Sears rang up about twice as much in sales as usual. Michael Bozic, chairman of the Sears Merchandise Group, said he found the response "extremely gratifying." But the longer- term question is whether Sears will consistently be able to match the prices of such established discounters as Target and Toys "R" Us. Shopper Nichelle Smith, 20, who went to a Sears outlet in suburban St. Louis last week to shop for inexpensive children's clothing, appreciated the lower prices but wondered whether Sears will stay competitive. Said she: "I'm going to come back and see if this is the real story."

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CREDIT: TIME Chart by C. Davis

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