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					Sears Holdings
  Company
    SHLD
 Good Life, Great Price.
    Game Room Consultants
         David Gretz
       Josh Goldsmith
          Ben Heily
          Pat Hand
Video
Sears History
   Richard Sears                1973 Sears Tower
   1886 Watch Reseller          1981 Dean Whitter &
   1893 Founded                  Coldwell Banker
   1931 Allstate                 Bought
    Insurance                    1985 Discover Card
   1945 1 Billion in Sales      1993 Coldwell Banker
   1953 First                    Sold
    International Presence       2005 Sears Kmart
                                  Merger
Sears Holdings Culture
   Our Vision:
        Sears Holdings is committed to improving the lives of our customers by
         providing quality services, products and solutions that earn their trust and
         build lifetime relationships.
   Our Mission:
        Build customer relationships Make more money
         Improve every day
   How We Lead:
        Focus on the customer
         Build and align teams
         Know how to make money
   How We Work Together:
        Teamwork
         Integrity
         Accountability
         Coaching for execution
         Positive energy
         Recognition through results
Sears Offerings
   Brands             Product Categories
       Craftsman
                        Apparel
                        Appliances
       Kenmore
                        Auto/motorcycle supplies
                        camping & rec equipment
       Diehard         lawn and garden
                        furniture/ home accessories
       Lands End       tools and hardware
                        baby
                        electronics and computers
                        health and wellness
                        jewelry
                        miscellaneous



                    3rd largest general retailer
Competition
Sears outside the U.S.
   Sears in Canada
       Simpson - Sears
       Thursday, September 17th, 1953 at 9:15 a.m.
       25 years
       New name
       Largest retailer in Canada
   Sears in Mexico
       First opened in 1947
       Merger with Grupo Carso
Sears in the 80’s
   Sear’s aggressively pursues financial
    services
   Emerging competition
       Discount Stores
       Specialty Stores
Challenges
   Merchandising operation in serious trouble
   Massive corporate restructuring
   Customers knew sears, better than sears
    knew its customers
   Couldn’t compete with EDLP strategy
   Lack of information technology
Changes in Stores
   Remodeled departments (Power 7)
       Women’s Apparel, appliances/electronics, home
        improvements, children’s clothes, automotive,
        men’s fashion, and furniture
       Sold not only Sears’ brands, but also national
       From 50% selling space, to 70% selling space
            Cut inventory held with out increasing stock outs
               Warehouse and distribution changes
Changes in Stores
   National business manager appointed
       Buyers were responsible for pricing and product
        mix for one national format
            Now, oversees each of the Power 7 departments
             to more successfully compete against each
             departments niche market.
       Slow to remodel though…!
            By 1992, only the automotive and appliance
             formats were in place nation wide.
Store Changes
   1993, close 113 unprofitable stores…
       Invested in more floor space for promoting
        fashion merchandise
       Point of sale registers, IT
       Merchandise Assortment Planning System
        MAPS
The Catalog
   Major money lost
       145 million in 1991, 165 million in 1992
       Didn’t utilize customer database
       Poor service
            No toll free 800 number
       1993 closure of catalog operations
            Saved money invested in retail restructuring
Transportation/Distribution
   1990, created separate company SLS
       All goods go through replinishment centers
       Paperless environment from 100 carrier bills to 1
       Closed 5 old centers, laid off 5700 employees
       Built 6 new warehouses
IT and Financial Services
   Reduced distribution expenses
   DOS, integrated all stores with distribution
    sites through point-of-sale systems
   1992 sold Dean Witter, included Discover
   Offered 20% of Allstate insurance in public
    stock offering
Legal/Ethical Issues
   2002 Class Action FLSA
   Waiting pays
   Bankruptcy Issues
   Customer Satisfaction Issues
SWOT
   Strengths                          Weaknesses
       Employees                          Integration of supply
       Name                                chains
       Sears Credit Card                  Poor online sales
       Strategic partnerships             Kmart store size
       Merger with K-mart                      Sears is 180-200K
                                                 sq.ft.
            Larger customer base
                                                K-mart is 40-194K sq.ft.
            2370 stores in USA
                                           Fashion merchandise
       Strong corporate history
                                           Old Run Down stores
       Name/Brand recognition
SWOT
   Opportunities                      Threats
       Cost savings through               Internet site
        economies of scale                 Competition
       Expansion into Hispanic                 JCPenny, Wal-mart
        market niche in US                         Target

       HUGE customer database             Bad Public relations
       Strategic Alliances
       Cash in on “Americanism”
       Enhance global operations
       Improve free cash levels
Buy, Sell, or Hold???
   Hold for little or no risk
   Buy, moderate risk, potential to make $
                  Current Month   Last Month          Two Months Ago   Three Months Ago

    Strong Buy         0              0                     0                 0
    Buy                3              3                     3                 3
    Hold               3              3                     3                 3
    Sell               1              1                     1                 1
    Strong Sell        0              0                     0                 0


Current stock comparison
                                      Yahoo Finance
Sources
   Cramer’s Mad Money’ Recap: A Yardstick for Sears.
    http://www.thestreet.com
   Google Finance, SHLD. http://www.finance.google.com
   Kmart Corp. http://www.kmartcorp.com
   Sears, Archives. http://searsarchives.com
   Sears Canada.
    http://en.wikipedia.org/wiki/Sears_Canada
   Sears Canada Inc. http://www.sears.ca
   Sears Holding Corp. http://www.searsholdings.com/
   Yahoo Finance, SCC.TO. http://www.finance.yahoo.com

				
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posted:9/15/2012
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