• Chicago Tribune, Friday, September 3, 2010 10:39 AM

You just knew the words "once again" were going to pop up in Sandra M. Jones story about Sears remaking its fashion business and, sure enough, there they were right in the lede. The trendy transformation of about 200 outlets in Chicago, Los Angeles, New York and Washington, D.C., that began in May involves new fixtures and mannequins as well as faster deliveries of hot fashions and more workers to sell them, according to Melanie Henson, CMO for apparel.

Analysts say that a well-run apparel department can generate profit margins of 30 to 40% -- reason enough to want to "transform the chain store best known for tools and dishwashers into a Mecca of fashion for women and teens," as Jones puts it. But what's different about this particular makeover is that chairman and controlling shareholder Edward Lampert has moved the company's apparel buying and merchandising operation to San and hired former Kmart and Mervyn's executive John Goodman to run it.

But regaining share lost over the years will be as difficult as sticking to a single metaphor, according to Standard & Poor's retail analyst Jason Asaeda. "Apparel at Sears has been an afterthought for customers," he says. "Even though they might show some improvement, the bar keeps getting raised higher and higher. It's a tough uphill battle."

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