The recession has changed many American's buying habits dramatically. Anthony Mason shows us how one of America's biggest stores is changing gears.
>> Anthony Mason: Inside Sears flagship store in Chicago as customers look at merchandise, up in the second floor war room, Sears is looking at its customers, tracking their Internet page clicks and purchases.
>>
Speaker: We're watching you, and watching you buy stuff, but then learning from you.
>> Anthony Mason: That research is more important than ever with the earth-shaking shift in American shopping habits.
>>
Speaker: All the metrics, consumer confidence, consumer expenditures, have declined at a rate we haven't seen in 40 or 50 years.
>> Anthony Mason: Do you think this is transformational or temporary?
>> Richard Gerstein: I think it's absolutely transformational.
>> Anthony Mason: Richard Gerstein heads marketing for Sears and Kmart.
>> Richard Gerstein: I think the customer is reassessing their personal values and what value means in the world of shopping.
>> Anthony Mason: And inside the sprawling corporate headquarters, Sears' executives are scrambling.
>>
Speaker: We can't beat the economy.
>> Anthony Mason: The company made a profit on the first three months of 2009, but overall, sales were down nearly 12 percent from a year ago.
>>
Speaker: Will this economy affect the choices you make here?
>> Lisa Schultz: Yes. Definitely.
>> Anthony Mason: Lisa Schultz leads the New York apparel team that designs for the 3800 Sears and Kmart stores.
>> Anthony Mason: So this is a jacket for what? Next summer? Next --
>> Lisa Schultz: Yeah. So this would be summer, 2010.
>> Anthony Mason: To cut costs, Sears designers are actually developing their own fabrics, making blouses with machine washable polyester chiffon. At $20.00, it looks and feels like silk that retails for $100.00.
>> Lisa Schultz: Price is very important.
>> Anthony Mason: Sears also is promoting a guarantee to replace any kids clothes that wear out.
Commercial
>>
Speaker: Must haves must last. That's our fashion statement.
>>
Speaker: This is the Sears product development lab. This is where we look at appliances that we'll introduce to the marketplace --
>> Anthony Mason: Sears is the biggest appliance seller in the country, but sales have slipped, so soon it will allow buyers who lose their jobs to suspend payments.
>>
Speaker: You can come over to here. Our associates will sit with you.
>> Anthony Mason: And at store kiosks, Sears is even offering to find items it doesn't carry.
>>
Speaker: We actually will go out to other websites and find it for you and process it for you. We don't want you shopping anywhere else.
>> Anthony Mason: After closing 28 stores last year, Sears will shut another 24 this year. In this recession, as shoppers are redrawing the retail map, Sears is trying to make sure it'll still have a place on it. Anthony Mason, CBS News, Chicago.
==== Transcribed by Automatic Sync Technologies ====
© 2009 CBS Interactive Inc. All rights reserved.
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