Sears Canada announces new pricing strategy

Sears Canada Inc. has taken a page from rival Wal-Mart Canada Corp.’s book with a new pricing strategy, aimed at lowering day-to-day prices on everyday items.

The move comes as the retailer faces increasing pressure to boost years of sales declines, part of a strategy from new chief executive Calvin McDonald to compete in a fierce retail market that is girding for the arrival of mass merchant Target next year.

The company said on Thursday that it will cut prices on more than 5,000 items across every department, and gave examples of reductions to popular jeans, towels and baking dishes.

“We also know Canadians love sales, and Sears will continue to offer sale prices and time-limited special promotions that will surprise and delight customers,� Mr. McDonald said in a statement.

The company said in addition to the broad value-based pricing strategy, Sears will introduce a new weekly price-cutting program, “WOW� items. In-store merchandising will align more directly to what is promoted in the flyers.

“Sears has a history of being known for great value across the store every day,� continued Mr. McDonald, “but we need to do this in a way that offers a better shopping experience.� Canadians, will be “pleasantly impressed,� he added.

The company also gave other examples of its lowered regular prices, including cuts on a range of mens’ Levis and Point Zero Jeans, from $80-$95 to $49.99; boxed bras by Warners, Vogue, Wonderbra from $32-42 to from $19.98 to $24.98; and a Keurig coffee brewer from $149.99 to $119.97.

Sears also reiterated a price match guarantee which states that if its customers can find a major appliance, mattress or furniture item that they have purchased from Sears for a cheaper price at another Canadian retailer up to 60 days after purchase, Sears will match and beat the price difference by 10%.