Sears Looking Beyond Shopping Malls

Sears, Roebuck & Co. plans to open more stores outside shopping malls as it benefits from shedding unprofitable businesses, Chief Executive Alan Lacy said.

The largest U.S. department store chain is remodeling stores and plans a new clothing line, and will open more stores as it boosts profit, Lacy said.

Expansion in malls is limited because fewer are being built. Sears’ mall-based stores face competition from such firms as Wal-Mart Stores Inc. and Home Depot Inc.

Sales at stores open at least a year have fallen in 10 of the last 11 months through March, and Sears has said it expects sales to decline through the end of the year. Sears needs to add stores to boost sales, investors have said.

The Hoffman Estates, Ill.-based company is opening 15 stores this year, of which almost half are replacing older ones.

Sears shares fell 97 cents to close at $51.95 on the NYSE.