Sears Cuts Jobs, Tries To Breathe New Life Into Kmart, Kenmore

Things haven't been great at Sears Holdings Corp., what with the falling sales, executive turmoil, demoralizing press coverage, and Wednesday's announcement that it would cut 200 jobs at its Hoffman Estates, Ill., headquarters.

The 200 jobs--about 4% of Sears' 5,000 headquarters employees--are reportedly to come from the a sector renamed "Support" in a recent reorganization, a division that includes marketing, as well as store operations, customer strategy and finance.

But both of its Sears and Kmart divisions are looking for new ways to connect with consumers: Kenmore unveiled new appliances at the International Builders' Show, including the Kenmore Elite Oasis washer and Oasis SteamCare, as well as a new antimicrobial technology for refrigerators.

The new versions of the Oasis, which will be in stores next month, are even greener than the previous models. Sears says both models surpass Energy Star standards, and reach Tier II Consortium for Energy Efficiency (CEE) ratings. "The Oasis washer saves 63% more water and 65% more energy than comparable laundry pairs on the market," it says. And the Oasis is available in both topload and frontload format. "Our studies show that a majority of homeowners still prefer top load options due to their capacity and price," the company says.

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And in what it describes as a "breakthrough in refrigeration technology," it also took the wraps off a new frill for the fridge: Crisper drawers made from Microban antimicrobial product protection. The substance will "deliver peace of mind to busy parents and homeowners," it says, "and continuously inhibit the growth of stain and odor-causing bacteria." It will be available in more than 750 models, beginning in April.

Kenmore continues to be one of Sears' most durable brands, despite an industry-wide slump in appliance sales, linked to the soft real-estate environment.

And Kmart, which like Sears has been struggling with declining same-store sales, says it's undertaking a nationwide search for "the country's next style guru, to serve as a fashion ambassador for the brand." The winner will appear in Kmart's national ad campaign, and spend a day working with the company's Soho-based designers, and will receive $10,000 in Kmart gift cards.

To win, contestants have to upload a photo of themselves at kmart.com/style, and will be judged within four style segments: casual, classic, trendy or sporty.

Kmart, which carries such exclusive brands as Jaclyn Smith, Joe Boxer, and Route 66, recently introduced three new lines: Piper & Blue, for juniors; a Hispanic-tailored collection for young men called Limon & Sal, and Wckd, for both young men and women.

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