APM

Sears Canada Announces Plan to Open its First Free-Standing Off-Mall Department Store

The province's first ever Sears full-line department store creates more than 150 retail jobs and 200 construction jobs in the community

TORONTO, July 14 /CNW/ - Sears Canada Inc. (TSX: SCC) today officially
announced that it will open its first free-standing off-mall department store
in Charlottetown, Prince Edward Island which is the province's first ever
Sears full-line department store. The new store, which will be located at
Malpeque Road and the Charlottetown By-Pass, will open in the Summer of 2005. It will create approximately 150 full and part-time retail jobs and 200
construction jobs in the community.

"We have been eagerly awaiting the right opportunity to open a Sears
department store on Prince Edward Island for quite some time and are delighted that the ideal location has finally been selected," says Mark A. Cohen, Chairman and Chief Executive Officer, Sears Canada Inc. "We are particularly excited about this new store as it's not only our first full-line department store in PEI, it's our first free-standing off-mall department store to open in the country."

Mr. Cohen announced earlier this year that Sears Canada was actively
seeking off-mall locations for the continued growth of its full-line
department store channel. "We are seeking new ways of bringing our full-line department store closer to residential neighbourhoods not served by
traditional shopping malls," said Cohen. "An off-mall or Power Centre strategy provides such an opportunity."

The new 108,000 square foot store will house a wide range of private and
national brand merchandise, including fashion apparel, accessories, cosmetics, home fashions, home improvement products, major appliances and electronics, as well as a Sears merchandise pick-up location for catalogue and internet orders. The store will feature a modern, easy-to-shop interior design.

Additionally, the new store will offer specialty services (licensees)
including a portrait studio, travel office, hair salon, watch repairs,
optical, keys and engraved gifts, greeting cards and alterations.

"This new store will bring the Sears department store selection to
Charlottetown and the Island in addition to providing a great place to shop
with the best that Sears has to offer -- merchandise selection, exceptional
customer service and convenience," said Cohen.

In Prince Edward Island, Sears currently has 16 catalogue merchandise
pick-up locations and two dealer stores.

Sears Canada, the retailer with the most extensive multi-channel network
in the country, began serving customers in 1953. The Company has 48,000
associates and, in an independent consumer survey, ranks first in trust,
respect, and quality products and services. There is a Sears location within a 10-minute drive of 93% of Canadians, and Sears is dedicated to providing them with quality merchandise and exceptional service coast to coast through its 122 department stores, 47 Sears Home stores, over 2,200 catalogue merchandise pick-up locations, 148 dealer stores, 12 outlet stores, 51 floor covering centres, 110 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.

For further information: Contact: Vincent Power, Sears,
Corporate Communications, (416) 941-4422, vpower@sears.ca