Sears to Open Test Sites With KB Toys

Sears, Roebuck & Co. said it will test holiday toy sales in 29 of its department stores under an agreement with closely held specialty retailer KB Toys Inc.

As part of the deal, Sears will open "stores-within-a-store" at some locations. The shops will average 1,500 square feet and will have a variety of brand-name and KB Toys products.

The companies said the first "KB Toys at Sears" location will open Friday in Chicago. On Oct. 20, three other cities will launch KB Toys at Sears locations, including 19 stores in the Los Angeles area.

Sears shares fell $1.02 to $33.08 on the NYSE.