SEARS <S> MERCHANDISE PLANS HIGHER SPENDING
Sears, Roebuck and Co said in its
annual report that its Merchandise Group plans 1987 capital
expenditures of 355 mln dlrs, up from 280.4 mln dlrs in 1986.
   It said about 131 mln dlrs will be used for 32 new and
relocated stores and 38 new paint and hardware stores. The
nation's largest retailer also said it plans to remodel 126
stores this year.
    Of five new stores to open in 1987, Sears said four will
replace units in markets already served and one will be in a
new area. At yearend 1986, the company said it had 284
full-line stores operating in its new market-driven format.
    Sears said it was "optimistic" about prospects for 1987,
citing its positioning to meet merchandise and financial
service needs of its customers.
    To broaden its apparel customer base, Sears said it will
issue a new catalog called "Changes" featuring natural fiber
clothing. It said the catalog, printed on oversized pages, will
be distributed in limited markets in 1987, with national
circulation planned for 1988.
    In the annual report, Sears reiterated its expectation that
losses from introducing the company's financial services
instrument, Discover Card, should continue to decline
throughout 1987 and cross the breakeven line and generate a
profit in 1988.
    The company scheduled its annual meeting for May 14.
 Reuter
