Colorado's first Sears-Kmart hybrid - called Sears Essentials - is scheduled to open Wednesday in the former Kmart store at East Evans Avenue and South Monaco Parkway in Denver.

Sears Holdings Corp., created when Kmart Holding Corp. acquired Sears Roebuck and Co. in March, plans to convert 400 Kmart stores to the Sears Essentials format by the end of 2007. So far, the Denver store is the only one lined up for Colorado.

The new concept integrates Sears products and brands, including Craftsman tools and Kenmore appliances, with Kmart's pharmacy, health and beauty, household goods and other convenience offerings, said Sears spokeswoman Corinne Gudovic. Kmart apparel and shoes will be replaced with Sears' lines, including the Lands' End brand.

Crews have been remodeling the store for a month. Last week they replaced the familiar red 'K' outside the building with the new Sears Essentials logo. The store will be closed today as crews make final changes. It is expected to reopen Wednesday.

Gudovic couldn't provide employment numbers for the Denver store. Typical Kmart stores employ 90 to 100 people. That increases to roughly 125 once stores are converted, she said. The company is not disclosing how much it is spending to convert the stores.

Kmart's popular Martha Stewart line will not be sold at Sears Essential stores because of contractual issues.

Analysts view both the merger and the new store format as attempt by the two struggling companies to compete against discount rivals Target and Wal-Mart.
"The problem with the Kmart brand is that essentially it's a broken brand," said Jon Schallert, president of The Schallert Group Inc., a Sorrento, Fla., retail consulting firm. "This sounds like a safe way for them to make some of the transition, but for it to really be appealing and really gain dominance, they're going to need to alter it way beyond what they're doing now."

Denver shoppers are divided over the new store concept.

"I probably won't shop here anymore," said Sharon Lackey, 64, of Denver, who says Sears brands are too expensive. "I'll go to another Kmart even if it's farther away."

Denver resident Christina Wilkinson, 47 said she's willing to give the new store a try.

"I don't want to see Kmart go away, but I want to see more competition for Wal-Mart," she said.
 

Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.