In the latest move to carve itself a new niche, Sears, Roebuck (NYSE: S) will offer its own line of high-end projection TVs under the brand name Veos. Is this a move that's going to help resuscitate Sears?
According to CNET, the Veos high-definition TV (HDTV), provided by a company called Brillian (Nasdaq: BRLC), doesn't come cheap, with the 65-inch model on Sears' website sporting a $7,999 price tag. However, it's hard to ignore the fact that Sears' appliances, hardware, and consumer electronics lines compete with all the usual suspects: Wal-Mart (NYSE: WMT), Target (NYSE: TGT), Best Buy (NYSE: BBY), Circuit City (NYSE: CC), and Home Depot (NYSE: HD), as well as a host of others.
On a quick check of Best Buy's website, the most expensive rear-projection 65-inch HDTV model I could find was a Toshiba at $3,199.99. Circuit City's site advertised a 60-inch Sony model at $5,499.99. While this is some off-the-cuff window shopping, it gives a little indication that the Veos price tag is a steep one.
Thinking of the competitors named above, I do wonder whether this plan is meant to segue with Sears' budding off-mall strategy, which includes the Sears Grand concept. Though recent results left something to be desired, consumer electronics is one area that has seen an increase in comparable-store sales -- including a 20% increase in flat-screen and projection TV sales, according to the transcript of the company's conference call from Thomson StreetEvents -- while former Sears standbys such as home appliances, tools, and paints have been lackluster. There is logic in trying to play to that momentum.
As per usual, though, I'm wondering about Sears' seemingly scattershot approach. Its usual demographic is hardly one that seems likely to drop $8,000 on a TV (in fact, recent information implied that for some of its stores, even Sears' Lands' End brand wasn't resonating with customers).
Judging by the fact that most of the time when I write about Sears, I hear a lot from readers who express alienation from what was once a stalwart and respectable shopping destination, many customers may be hard to win back over, and the company seems to continue to struggle to find itself once again. Investors likely want to stay tuned for the next episode in the ongoing Sears saga.
Are you window shopping for a home theater? Got questions or suggestions? Talk to other Fools who have tips and ideas on the Help With This Home Theater discussion board.
Alyce Lomax does not own shares of any of the companies mentioned.
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