Major Purveyor

Lands' End, which sought the deal, was founded in 1963 as a seller of sailing equipment, but mushroomed over two decades into a major mail-order purveyor both of clothes and home furnishings. The Dodgeville, Wis., company cruised through the 1980s, ringing up annual sales and profit gains of over 40% by selling traditional threads such as khaki pants and rugby shirts. Stressing quality and value rather than fashion fads, it won loyal customers by setting a new standard for service: Calls to its phone centers were answered within 1.5 rings, merchandise was almost always available and orders were usually shipped within a day.

Lands' End management will remain in place and it will continue to operate from its Dodgeville headquarters. Chief executive David F. Dyer, 51, will assume control of the Sears Internet business and some small niche catalogs it kept when it closed the "Big Book." Those had combined sales last year of about $500 million.
Sears's largest acquisition in a decade reverses course for Sears Chief Executive Alan Lacy. When he took the post two years ago, he indicated his intention to end his predecessor's emphasis on "softlines" such as apparel and focus instead on well-known Sears appliance and tool brands.

But in agreeing to acquire Lands' End, Mr. Lacy could bring more luster to the retailer's softlines than did his predecessor, Arthur Martinez, under whom Sears launched its "softer side of Sears" advertising campaign.

The acquisition comes as pressure was building for Mr. Lacy to unveil his growth plans. Since taking charge, he has focused on widespread and deep cost cutting that has boosted the value of Sears shares.