Sears Holdings Corporation

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Sears Holdings Corporation

<tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">Image:Sears Holdings Corporation logo.jpg</td></tr>

Type Public (NASDAQ: SHLD)
Founded 2005 (merger of Kmart and Sears)
Headquarters Hoffman Estates, Illinois, USA

<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Edward Lampert, Chairman
Aylwin B. Lewis, President and CEO of Kmart and Sears Retail
Craig Monaghan, CFO</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Retail</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Brands such as Craftsman, Kenmore, Lands' End, DieHard, Martha Stewart Everyday, Joe Boxer, Jaclyn Smith, Sesame Street</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Revenue</th><td>Image:Green Arrow Up.svg$49.124 billion USD (2006)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Net income</th><td>Image:Red Arrow Down.svg$858.0 million USD (2006)</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Employees</th><td>355,000</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>http://www.searsholdings.com/</td></tr>

Sears Holdings Corporation (NASDAQ: SHLD) is the fourth largest retailer in the United States, behind Wal-Mart, The Home Depot, and Kroger <ref>STORES.org list of the top 100 US retailers (as of July, 2006)</ref>. It was formed in 2005 with the purchase of Sears, Roebuck and Company of Hoffman Estates, Illinois by Kmart Holdings Corporation of Troy, Michigan.

The company operates 3,800 retail locations under the mastheads of Sears, Sears Grand, Sears Hardware, Kmart, Big Kmart, Super Kmart, The Great Indoors, Orchard Supply Hardware, and Lands' End stores.

The company maintains its corporate headquarters in Hoffman Estates, Illinois.

Contents

[edit] History

In November 17, 2004, Kmart announced its intentions to purchase Sears. As a part of the merger, the Kmart corporation would change its name to Sears Holdings Corporation. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands.

The two companies cited several reasons for combining forces:

  • Sears had begun investing in new, larger off-mall stores, called Sears Grand. Earlier in the year, Sears had purchased dozens of current Kmart locations; the merger permitted the combined company to accelerate that process.
  • Proprietary brands held by both companies could be made more accessible to their target demographics by leveraging their combined real estate holdings. This was estimated to be an expected $200 million a year in revenue synergies.
  • At least $300 million a year in cost savings was expected annually, particularly in the supply chain and in administrative overhead.
  • The establishment of a shared customer-focused corporate culture between the two companies was estimated to yield improvements in revenue per unit area.
  • Preservation of two brands after the merger allowed Sears Holdings to continue focusing on different customer demographics, without alienating either group.

The new company is directed by a board of directors comprised of members from the two companies: seven members from Kmart's board, three from Sears. Shareholders in the Kmart Corporation received one share in the new company. Shares of Sears, Roebuck and Company stock was converted into a combination of 55% stock and 45% cash (at $50 a share). Stockholders had a choice of receiving either stock or cash, subject to the predefined ratio.

The merger was completed on March 24, 2005, after receiving regulatory approval from the government and approval by shareholders of both companies.

The Sears Holdings Corporation then re-modeled many Kmarts and Big Kmarts by changing their signage to "kmart." The "K" in Kmart was made lower-case to make Kmarts feel and look more high tech for the 21st century.

[edit] Sears Holdings today

Image:SearsEssential.jpg
The exterior of a typical Sears Essentials store.

Sears Holdings continues to operate stores under the Sears and Kmart mastheads. In 2005, Sears introduced a new store format, called Sears Essentials; Some Kmart stores were converted to Sears Essentials, as well as a few locations that were acquired from Wal-Mart and several bankrupt discount retailers. The new store format combined the Sears store concept with the Kmart format, which was supposed to help the company better compete with Wal-Mart and Target. The project has since been resigned, and merged with the Sears Grand concept.

In 2005, Nike announced that it would no longer allow its products to be sold in Sears stores. Analysts speculated that Nike did not want its shoes and apparel sold in Kmart stores, and terminated its sales agreement with Sears Holdings to prevent this.

Sears Holdings has begun cross-selling merchandise between its two brands. For example, Craftsman tools are now available in Kmart stores; they were previously exclusive to the Sears brand. Martha Stewart products are not sold at Sears, however continue to be sold at Kmart.

Sears Holdings owns 55% of Sears Canada, a large department store chain in Canada, similar to the United States stores. (Sears Holdings is trying to buy the remainder of Sears Canada it does not own). Like Target stores, Kmart-branded stores in Australia belong to Coles Myer; Coles Myer also holds the rights to the Kmart brand in New Zealand.

Because Kmart Corporation changed its name to Sears Holdings and because it is converting some Big Kmart stores to Sears Grand stores as a test, there is speculation that Sears Holdings may drop the Kmart name entirely in the next decade.

In November 2006, speculation rolled around as The Chicago Sun Times reported that Sears may buy Safeway, Home Depot, Gap , RadioShack, Pep Boys, and Anheuser Busch. <ref>Sears may have eye on Safeway </ref>

[edit] Chains

[edit] Current

Image:SearsGrand exterior lo.jpg
The exterior of a typical Sears Grand store.
Image:DSCN2582.JPG
A Sears Hardware store shortly before closing.
  • Sears Hardware is a chain of hardware stores that carry the whole line of Sears hardware and are usually free-standing or located in strip malls. Typically these stores are about 25,000 square feet.
  • Sears Appliance Dealer is a chain of smaller stores that are operated as franchises. These stores are usually located in smaller markets that do not support full-sized Sears. They are signed as Sears and are usually free-standing or located in strip malls. They primarily concentrate on hardware, appliances, and lawn and garden supplies.
  • Sears Outlet is an outlet version of Sears department stores located in outlet malls.
  • Sears Parts & Repair is a chain of service centers that typically sell parts for appliances and also feature a carry-in point for customers to bring merchandise in that needs repaired either in or out of warranty. Typically labeled Sears Service Center or Sears Home Central, two names that also refer to the Parts and Repair centers. Sears has started closing many of these down as more and more of its service and repair business is home-based.
  • The Great Indoors is a chain of free-standing home décor stores that carry high end appliances, bedding, and kitchen and bath fixtures. The Great Indoors stores are 130,000 square feet (12,000 m²).

[edit] Former

[edit] Brands

  • Craftsman - tools and mens clothing
  • Diehard - car batteries
  • Kenmore - appliances
  • Jaclyn Smith - branded clothing
  • Joe Boxer - branded underwear and home decor
  • Lands' End - branded clothing and home decor
  • Martha Stewart Everyday - branded home decor, kitchen and home improvement items
  • Route 66 - branded clothing
  • Sesame Street - branded clothing
  • Thalía - branded clothing and jewelry
  • Ty Pennington style - home decor
  • Personal Identity - branded juniors clothing
  • Canyon River Blues - branded mens and misses clothing
  • Covington - branded mens and misses clothing and footwear
  • Winnie the Pooh - branded childrens clothing
  • Apostrophe - branded misses clothing and jewelry
  • Parallel - branded misses clothing
  • Latina Life - branded misses clothing and jewelry
  • Two Hearts - branded maternity clothing

[edit] Major sponsorships

Image:Nascar craftsman truck series logo.jpg
The current NASCAR Craftsman Truck Series logo.

The Sears Holdings Corporation sponsors the NASCAR Craftsman Truck Series using the Craftsman brand as the title sponsor. Craftsman tools are also the official tools of NASCAR.

Sears Holdings Corporation sponsored Extreme Makeover: Home Edition.

Sears Holdings Corporation sponsors and currently has naming rights to the Sears Centre, an arena constructed in 2006 in Hoffman Estates, Illinois.

[edit] Diversity

  • Sears Holdings received a 57% rating on the 2004 Corporate Equality Index published by the Human Rights Campaign.
  • Sears Holdings was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

[edit] References

<references/>

[edit] External links

[edit] Further reading

  • Katz, Donald R. (1987) The Big Store: Inside the Crisis and Revolution at Sears Viking Press; New York
  • Stevenson, Katherin Cole, and Jandl, H. Ward, (1995) Houses By Mail: A Guide to Houses from Sears, Roebuck and Company John Wiley & Sons; Hoboken, New Jersey
  • Turner, Marcia L. (2003) Kmart's Ten Deadly Sins: How Incompetence Tainted An American Icon John Wiley & Sons; Hoboken, New Jersey

[edit] See also

Sears Holdings Corporation

People: Floyd Hall | Alan J. Lacy | Sebastian S. Kresge | Alvah C. Roebuck | Richard Sears

Retailers: Kmart | Big Kmart | Super Kmart | Lands' End | Sears | Sears Grand | Sears Hardware | Sears Appliance Dealer | Sears Outlet | Sears Parts & Repair | The Great Indoors | Orchard Supply Hardware | Sears Canada | Sears Mexico

Brands: Craftsman | Diehard | Joe Boxer | Martha Stewart Everyday <p style="font-size:90%;margin-bottom:0">Annual Revenue: Image:Green Arrow Up.svg$49.124 billion USD (2006) | Employees: 355,000 (2006) Stock Symbol: NASDAQ SHLD | Website: searsholdings.com</small> </center>

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Sears Holdings Corporation

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