Sears Toys With KB

The gift-giving season is hurtling towards us, and Sears (NYSE: S  ) has come up with yet another game plan to reel in shoppers. On Tuesday, the retailer announced that it will have KB Toys featured in 600 of its stores.

Its relationship with the well-known toy brand is not a new one; however, last year KB was featured in only 77 Sears stores, so it seems the retailer is gearing up for action -- and action figures -- this season.

However, when it comes to mirth, Sears is competing with such heavyweights as Toys "R" Us (NYSE: TOY  ) and Wal-Mart (NYSE: WMT  ) . While Toys "R" Us might sound like the reigning king of the playroom, Wal-Mart has stolen the crown, due to its ubiquitous nature and reduced prices.

Those super-aggressive "falling prices" that shoppers watch for could be a serious problem for Sears' KB connection. After all, cheaper means more gifts and more fun.

Sears also plans to boost its My First Craftsman play "tools" for children. It may sound a little wacky, but we'll see. With moms and dads flocking to Sears, Home Depot (NYSE: HD  ) , and Lowe's (NYSE: LOW  ) for tools for their do-it-yourself repairs, children's fondness for emulation could hold some appeal. And then there's the cute factor -- as in, how cute would it be if Johnny and Jane had their own pint-sized tools to "help" with home improvements?

Beyond the cash Sears could rake in through toys, perhaps its repeated reminders that it has brands will do a lot to change consumer psychology about the store and its former dowdy, no-name image. After all, other recent moves have included acquisitions of names shoppers know, such as Structure and Lands' End.

It should be interesting to see what else, if anything, Sears has up its sleeve for the holiday stocking. While beating up a little on playground bully Wal-Mart is a formidable task, investors seem to think Sears sure has heart for trying. The stock hit a new 52-week high of $49.26 in Tuesday's trading.

With hopes of continuing its turnaround story , Sears is expecting family shoppers for the holidays. Will they be game? A good place to talk it over with fellow Fools is on the Sears discussion board. Only on Fool.com.

Alyce Lomax welcomes your feedback at alomax@fool.com.