corporate info

Sears Canada Inc. (TSX: SCC) announced further price drops today on both Back-to-School necessities as well as other apparel and articles for the home. Reports continue to indicate that Canadians are concerned about the economy. Expenses such as rising fuel prices can be stressful to families as they try to stretch their household budgets at this time of year. Sears is responding with "Budget Relief Price Drops", a program that has lowered prices on a great selection of merchandise and that gives Canadians across the country confidence that they are getting the best prices for the clothing and necessities they are seeking without having to lower their standards of quality.

"Canadians want retailers to respond to the concerns they have with respect to the tougher economy and being able to afford what they need, especially with families preparing for back-to-school," said Dene Rogers, President and Chief Executive Officer, Sears Canada Inc. "Household budgets need some relief, and Sears has taken deeper-than-normal price cuts on private and national brands to let our customers know they can shop at their local Sears store with confidence."

For the Labour Day Long Weekend Sale, Sears is also offering a special offer for Sears Card or Sears MasterCard purchases in almost all stores. In some markets, customers can receive a $10.00 Sobeys Food Card with the purchase of $75.00. In some other markets, customers can receive a $5.00 gas card from Petro Canada for purchases of $50.00. Details are in this weekend's Long Weekend Sales flyer and in participating Sears stores.

"We know that two expenses families have to make outside of Sears and with which they also appreciate help are food and gas," continued Mr. Rogers. "This special bonus offer in addition to the Budget Relief Price Drops will make a trip to Sears this weekend valuable and worthwhile for many Canadian families."

Sears has already passed on savings associated with a stronger Canadian dollar. Additionally, Sears promotional advertising program provides outstanding competitive value during this key shopping season. Now, Sears has dropped the prices on additional items and has lowered promotional prices even further on others, and has identified them with "Price Drop" signs throughout the store to make it easier for customers to locate. Prices are in effect as of Saturday, Aug. 30, for a limited period. Here are some examples:

    <<
    Men's Levis 501 Jeans                                 $44.99, Reg. 74.99
    Men's Levis 505 or 550 Jeans                          $39.99, Reg. 69.99
    Men's Levis Belts                                     $17.50, Reg. 35.00
    Men's Protocol Dress Shirts                           $12.49, Reg. 25.00
    Men's Clark 'Cricket' Shoes                          $69.99, Reg. 119.99
    Men's RBK Full-zip Hooded Jacket                      $39.00, Reg. 60.00
    Men's RBK Woven Pants                                 $32.50, Reg. 50.00
    Women's Levis 512 Straight Leg or Boot-cut Jeans      $42.00, Reg. 70.00
    Women's Point Zero Jeans                              $39.00, Reg. 65.00
    Kenmore 0.9 cu. ft. Microwave                         $74.99, Reg. 99.99
    Kenmore Washer/Dryer Team                          $989.98, Reg. 1299.98
    Kenmore Dishwasher                                  $699.99, Reg. 999.99
    Sony Bravia 40" 1080P LCD TV                      $1199.99, Reg. 1599.99
    LG 32" 720P LCD TV                                  $699.99, Reg. 849.99
    Craftsman 12-inch Sliding Mitre Saw                 $349.99, Reg. 699.99
    >>

Schools supplies, excluding backpacks, are all 40% off through to the end of the Labour Day weekend. Also through the weekend, customers can save 40% on all children's clothing sizes 4 to 18 when three or more items are purchased, 30% when buying two, and 25% with a single purchase. This excludes socks and underwear which are already on sale. Customers who want to get in on significant pre-season outerwear purchases for their children can take advantage of Sears 40% off all kids outerwear sized 4 to 18 sale during this same time frame. All regular price references in this news release are Sears regular prices. Some restrictions apply with full details in store.

With respect to prices at other retailers operating in Canada, Sears reminds customers of its Price Guarantee, which states that the Company will match any advertised price in Canada (some restrictions apply). Customers can find additional information and details at their local Sears store.

This release contains information which is forward-looking and is subject to important risks and uncertainties. Forward-looking information concerns the Company's future financial performance, business strategy, plans, goals and objectives. Factors which could cause actual results to differ materially from current expectations include, but are not limited to: the ability of the Company to successfully implement its cost reduction, productivity improvement and strategic initiatives and whether such initiatives will yield the expected benefits; the impact of the sale of the Company's Credit and Financial Services operations and the results achieved pursuant to the Company's long-term marketing and servicing alliance with JPMorgan Chase Bank, N.A.; general economic conditions; competitive conditions in the businesses in which the Company participates; changes in consumer spending; seasonal weather patterns; customer preference toward product offerings; changes in the Company's relationship with its suppliers; interest rate fluctuations and other changes in funding costs; fluctuations in foreign currency exchange rates; the possibility of negative investment returns in the Company's pension plan; the outcome of pending legal proceedings; and changes in laws, rules and regulations applicable to the Company. While the Company believes that its forecasts and assumptions are reasonable, results or events predicted in this forward-looking information may differ materially from actual results or events.

Sears Canada is a multi-channel retailer with a network of 197 corporate stores, 185 dealer stores, 45 home improvement showrooms, over 1,850 catalogue merchandise pick-up locations, 106 Sears Travel offices and a nationwide home maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalogue and offers shopping online at www.sears.ca.

SOURCE: Sears Canada Inc.

Contact for Media: Eliana Cugini, Sears Canada, Corporate Communications, (416)
941-4426, ecugini@sears.ca