Can Sears turn retail relic into a destination?

CHICAGO - It took a trio of famous sisters -- Kim, Khloe, and Kourtney Kardashian -- and their namesake jeans to draw Sajde Kerimi back into Sears.

The 29-year-old mother of two usually heads to Nordstrom Rack and H&M to shop, but on a recent weekend Kerimi was in Sears at Woodfield Mall in Schaumburg, Ill., mulling several pairs of $68 Kardashian jeans.

"Normally I wouldn't shop at Sears at all," said Kerimi, who was passing through on her way into the mall. A $38.99 black jumpsuit looked particularly promising.

"I actually would come back and shop without kids and husband and spend money," Kerimi said.

Sears is hoping customers will have a similar reaction as it works to turn a retail relic into a destination. At its annual meeting this month, new merchandising chief Ron Boire said Sears is experimenting with new store designs in an effort to better connect with customers -- part of its plans to get back to basics.

But analysts are skeptical of those vows, noting that revamping Sears' aging retail stores has never been high on the company's to-do list. Since taking control of Sears in 2005, chairman and majority shareholder Edward Lampert instead has sought to wring out value for shareholders by selling off chunks of its real estate portfolio, bolstering its online presence and striking licensing deals for its Craftsman tools and Diehard batteries brands.

In a recent interview, Boire said Sears is experimenting with a sleek, sophisticated look at a handful of stores, including at Woodfield Mall.

Mannequins are displayed with skateboards and bicycles -- merchandise that can be found in other parts of the store. Likewise, items such as bras and panties that have always been shown separately are displayed together as coordinated outfits.

"You'll hear customers say they don't think we have the merchandise," said Deidra Merriwether, Sears' chief operating officer for retail formats. "We have the merchandise, [and] we are trying to make it easier for them to see it."

Boire and his team have a steep climb ahead: Sears' sales have fallen for six straight years, although sales declines in stores open for at least a year, which is a key retail indicator, narrowed in the quarter that ended April 28, falling 1.0 percent, compared with 5.2 percent in the same period in 2011.

While apparel and footwear sales also improved in the most recent quarter, consumers aren't buying Sears home appliances like they used to. Accounting for 60 percent of overall sales, appliance sales have been sliding. Boire's team made only a few tweaks to the appliance area by adding a cooking wall and making the merchandise more visible.

Formerly president and CEO of Brookstone, Boire joined Sears in January. He said he planned to make "appropriate, smart investments in things that are going to make a difference."

"It's indicative of a lack of focus," added Steven Keith Platt, director and research fellow at Hinsdale, Ill.-based Platt Retail Institute, an industry consultancy. "Stores that have not been refreshed or updated are a disaster for a retailer. Mix that with a lack of focus, and it's no surprise they are in a tailspin."