Sears Appliance & Hardware Stores Launches New Prototype

Sears Appliance & Hardware Stores Launches New Prototype

New Dallas Location Marks Launch of Smaller, Neighborhood Model Designed to
Increase Consumer and Franchisee Satisfaction

HOFFMAN ESTATES, Ill., Oct. 31, 2013 (GLOBE NEWSWIRE) -- The opening of a new
Sears Appliance & Hardware store in Dallas, Texas marks two milestones for the
hardware subsidiary operating under Sears Hometown and Outlet Stores, Inc.
(Nasdaq:SHOS). It is the debut of the smaller, neighborhood model that will
become a company standard for all new locations and the first brand new Sears
Appliance & Hardware store to open in the past ten years.

Dave Maggio, who co-owns the new Dallas Sears Appliance & Hardware Store at
10031 Marsh Lane with his business partner Michael Donohoe, is a Dallas-area
resident who owns several locations across the United States. He said, "We
first invested in the Sears Appliance & Hardware Store format two years ago by
purchasing company-owned locations all over the United States. Though we saw a
great need locally for a Sears Appliance & Hardware Store, there were no
existing company-owned locations for us to acquire. When we heard that Sears
Hometown and Outlet Stores was interested in rolling out a smaller,
neighborhood model, we knew this smaller version of the Sears Appliance &
Hardware Store format would fill a void in the Northwest Dallas area. Our new
store embraces the feel and customer service of a neighborhood hardware store,
without compromising on the reach of our merchandise assortment."

While the average Sears Appliance & Hardware Store is between 22-25,000 square
feet, the smaller, neighborhood model condenses the original model to
16-18,000 square feet, yet still offers the same size and quality of
inventory. Additionally, any item unavailable in store can be ordered and
delivered straight to the door of the consumer.

"No major portion of our inventory was impacted with the decision to launch
the smaller version of our Sears Appliance & Hardware Store format," said Rudy
Mazak, Divisional Vice President of Sears Hometown and Outlet Stores, Inc. "We
are able to maximize our traditional hardware and tool assortments while still
maintaining the breadth and depth of our traditional appliance and lawn and
garden lines. Plus, our customers are not limited to what is on the sales
floor – we have a multi-channel capability that provides an unmatched
convenience for consumers."

In addition to Dallas, the new, smaller neighborhood model, which is designed
as a means to enhance the consumer and franchise experience, has since been
introduced in Big Rapids, Mich. and Cedar City, Utah with pleasing results.

Sears Appliance & Hardware Stores specializes in home appliances, lawn and
garden and home improvement, carrying all of the top appliance and hardware
brands, including exclusive brands such as Kenmore^®, Craftsman^®, and
Diehard^®. Each location offers consumers a unique customer service
experience, placing an emphasis on being highly customer-centric in an effort
to accommodate all who walk through the door.

Sears Hometown and Outlet Stores, Inc. is currently seeking franchisees from
other hardware brands, who may be facing an over-saturated marketplace, to
open locations embracing the condensed version of its Sears Appliance &
Hardware Store format. Conversion opportunities may also be available for
independent and franchise business owners. With the launch of the smaller
neighborhood version of the Sears Appliance & Hardware Store format, Sears
Hometown and Outlet Stores, Inc. has created a concept that has a lower
initial investment than the larger version, and thus even more appealing to
entrepreneurs.

Sears Hometown and Outlet Stores, Inc. and its subsidiaries present a unique
business opportunity for entrepreneurs interested in having the brand power
that the Sears name brings. Sears Hometown and Outlet Stores, Inc., through
its subsidiaries, offers four different store formats and two franchise
opportunities. Aside from providing access to a widely recognized brand, Sears
Hometown and Outlet Stores, Inc. and its subsidiaries provide franchisees with
training support, purchasing power, inventory assortment and management and
assistance, as appropriate, with financing, computer systems and marketing,
among other services.

For more information about Sears Hometown and Outlet Stores, Inc., including
Sears Appliance & Hardware Stores, please visit www.shos.com. To learn about
the opportunity to own and operate a Sears Appliance & Hardware Store or other
format, please visit www.ownasearsstore.com.

About Sears Hometown and Outlet Stores, Inc.

Sears Hometown and Outlet Stores, Inc. (Nasdaq:SHOS) is a national retailer
primarily focused on selling home appliances, lawn and garden equipment, tools
and hardware. As of August 3, 2013, Sears Hometown and Outlet Stores, Inc.
and its dealers and franchisees operated 1,250 stores across all 50 states as
well as in Puerto Rico and Bermuda.

In addition to merchandise, Sears Hometown and Outlet Stores, Inc. provide
consumers with access to a full suite of services, including home delivery,
installation and extended service contracts.

Sears Hometown and Outlet Stores, Inc. operates through two segments—the Sears
Hometown and Hardware segment and the Sears Outlet segment. The Sears Hometown
and Hardware segment's stores are designed to provide customers with in-store
and online access to a wide selection of national brands of home appliances,
lawn and garden equipment, tools, sporting goods and household goods,
depending on the particular store. The Sears Outlet stores are designed to
provide customers with in-store and online access to purchase new,
one-of-a-kind, out-of-carton, discontinued, obsolete, used, reconditioned,
overstocked and scratched and dented products across a broad assortment of
merchandise categories, including home appliances, apparel, mattresses,
sporting goods, tools and lawn and garden equipment at prices that are
significantly lower than manufacturers' suggested retail prices.

CONTACT: For more information contact:
         Jayne Levy, Fishman Public Relations,
         at (847) 945-1300 or jlevy@fishmanpr.com
         or visit the corporate website at www.shos.com

Sears Hometown and Outlet Stores, Inc. Logo
 
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