Sears seeks to wow crowds at NY Fashion Week

By Nicole Maestri

NEW YORK, Aug 13 (Reuters) - A big discount retailer is looking to New York's upcoming September fashion week to cultivate a hipper image, and it's not Wal-Mart -- it's Sears.

Sears, Roebuck and Co, a subsidiary of Sears Holdings Corp (SHLD.O), said on Wednesday that it will unveil a lifestyle exhibit on Sept. 10 in New York's Bryant Park, where fashion's biggest names parade their spring collections on catwalks set up under big, white tents.

The retailer, not known for fashionable clothes, faces a hurdle convincing shoppers of its chic factor. It is also following in the footsteps of discount retailer Wal-Mart Stores Inc (WMT.N), whose attempt to ratchet up its fashion credentials at the same event backfired, hurting profits in 2007.

Sears' exhibit, open to the public, will showcase brands Sears already offers in its stores, like Kenmore appliances, as well as new brands that it is introducing, like a clothing line by rapper LL Cool J.

"What we really wanted to do was bring a taste of Fashion Week to people who would normally never get to sit under the tents or get to see a runway show," said Sears spokeswoman Amy Dimond.

The retailer will also hold an exclusive kick-off party meant to get those in attendance, like fashion industry executives, to look "at Sears in a way that people may have not in the past." she said.

The move comes as Sears tries to rejuvenate sales and compete with rivals like Kohl's Corp (KSS.N) and J.C. Penney Co Inc (JCP.N) that have ramped up their unique clothing offerings. In the first quarter, domestic sales at Sears stores open at least a year fell 9.8 percent.

Dimond declined to disclose how much Sears is spending to stage this event. But she added: "Real estate at Bryant Park is not inexpensive."

In September of 2005, Wal-Mart held its first New York Fashion Week show, hosting the event at a Times Square studio so pedestrians could watch.

But by early 2007, Wal-Mart scrapped its Fashion Week plans. Its shoppers proved more interested in basic, affordable clothes than trendy fashions like skinny jeans, leaving Wal-Mart with heaps of unsold clothing to mark down.

Marshal Cohen, who covers the retail sector as chief industry analyst at NPD Group, said that by participating in Fashion Week, Sears could generate some positive word-of-mouth and drive shoppers into its stores.

But he said the effort could backfire if Sears cannot deliver once it gets shoppers through its doors.

"The execution is going to be critical," he said. "It's great to say that you're going to have the product, but then you have to live up to it." (Editing by Gary Hill)