SEARS ACQUIRES ADDITIONAL DOWNTOWN EATON'S STORES
By Adnews Staff
Toronto-based Sears Canada Inc. has agreed to acquire five additional Eaton's locations following the retailer's earlier agreement announced on September 20. The original agreement announced Sears Canada would assume ownership of the Eaton's name, trademarks and Web site by the end of the year as well as the ownership of eight suburban stores with the option to acquire five more for $50 million. Yesterday the retailer announced it has expanded the September 20th agreement for an addition $30 million to acquire five downtown locations and operate them under the Eaton's banner. The five newly announced downtown locations include: the Toronto Eaton Centre, Winnipeg Polo Park, Calgary Eaton Centre, Vancouver Pacific Centre and Victoria Eaton Centre. Sears also has the option to acquire one additional leased location to be operated under the Eaton's banner which brings the number of stores Sears could acquire to 19. According to Sears, the stores included in this transaction will complete the liquidation sale, close and reopen in 2000 once the acquisition and repositioning by Sears is complete. The remodeled stores, the new Eaton's catalogue and the Eaton's Web site will also be launched together. According to Sears, Eaton's will become a new sales channel for the retailer. Paul Walters, CEO, Sears Canada said, the transaction gives Sears Canada access to a new market segment it currently does not have a presence in. The transaction is expected to close by December 31, and is subject to regulatory approval and a number of conditions.