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Sears Canada’s share of the overall apparel market in Canada slid to 9.5% in 2012 from 10.5% in 2009, while Hudson’s Bay saw its share rise to 8.1% from 7.4% and Winners’ share rose to 4.3% from 3.9%, according to market research firm Trendex International.

“You can see it is working with Jessica,” Sears Canada chief executive Calvin McDonald said of his company’s private brand of womenswear, which went through its own style makeover in early 2012. The brand’s same-store sales were up 15% year-over year in the first two quarters, Mr. McDonald noted in an interview. “That is why the Penningtons’ deal is so critical,” he added, noting another piece of the strategy announced in July to bring the plus-size brand to Sears with a goal to growing that category’s sales by 10% to 20%. “It is an updated style.”

There has been traction. In the second quarter announced last month, same-store apparel and accessories sales increased year-over-year for the third consecutive quarter.

But the key to a true turnaround at Sears Canada is growing the business sustainably — in the second quarter, the company would have posted an $11-million loss were it not for a real estate deal to vacate two of its Toronto-area stores by next March.

“We are exiting locations strategically if approached with value that is far greater than what we can create trading,” Mr. McDonald said, part of the company’s drive to become more efficient and productive.

There are some other locations under consideration for redevelopment similar to what the retailer proposes for Burnaby, B.C., where it aims to keep operating its Sears store but redevelop the surrounding land to add seven commercial and residential towers.