Sears (NYSE:S) announced today that it has acquired the rights to the Structure brand from Limited Brands (NYSE:LTD). The terms of the deal were undisclosed, but Sears said that the financial consideration was less than $10 million.
Structure is a modern clothing brand aimed at males age 18-30. Khakis, blue jeans, underwear, shirts, suits, and ties -- it competes with the likes of Gap (NYSE:GPS), Gap's Banana Republic, Abercrombie & Fitch (NYSE:ANF), and American Eagle (NASDAQ:AEOS). However, a couple of years ago Limited began phasing out Structure-branded stores, renaming the stores Express for Men -- the male counterpart to Limited's Express for Women.
(Side story: At my local mall, Limited actually replaced its Structure store this summer with an Express for Women. You can imagine my surprise, then, when after purchasing a Structure shirt a mere month earlier, I walked into the store and found it flooded with lingerie.)
Mindy Meads, Sears executive vice president of apparel, said that the company is "clearly focused on strengthening and broadening [its] apparel offering to new and existing customers. That focus means continually adding new brands and merchandise that are in fashion and relevant."
This is just the latest in Sears' moves to add national and private apparel brands to its stores. It recently rolled out its popular Lands' End brand, which it acquired last year, and the company announced the launch of its new apparel line by Lucy Pereda just last week. The company expects Structure merchandise to be in Sears stores by the end of 2004.
The deal seems like a win for both businesses. For less than $10 million, Sears adds to its brand portfolio at minimal cost. Limited gets a little jack for a brand it was phasing out anyway. Of course, one would assume that if Structure were setting sales records, it would not have been on the block to begin with.
Shares of both Sears and Limited saw slight gains in midday trading.
Will this move help Sears with its stodgy image or be irrelevant? Take it to our Sears board to discuss .
You may reach Jeff Hwang at [email protected] .
