Sears Holdings
Company
SHLD
Good Life, Great Price.
Game Room Consultants
David Gretz
Josh Goldsmith
Ben Heily
Pat Hand
Video
Sears History
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Richard Sears
1886 Watch Reseller
1893 Founded
1931 Allstate
Insurance
1945 1 Billion in Sales
1953 First
International Presence
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1973 Sears Tower
1981 Dean Whitter &
Coldwell Banker
Bought
1985 Discover Card
1993 Coldwell Banker
Sold
2005 Sears Kmart
Merger
Sears Holdings Culture
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Our Vision:
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Our Mission:
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Build customer relationships Make more money
Improve every day
How We Lead:
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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.
Focus on the customer
Build and align teams
Know how to make money
How We Work Together:
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Teamwork
Integrity
Accountability
Coaching for execution
Positive energy
Recognition through results
Sears Offerings
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Brands
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Product Categories
Craftsman
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Kenmore
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Diehard
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Lands End
Apparel
Appliances
Auto/motorcycle supplies
camping & rec equipment
lawn and garden
furniture/ home accessories
tools and hardware
baby
electronics and computers
health and wellness
jewelry
miscellaneous
3rd largest general retailer
Competition
Sears outside the U.S.
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Sears in Canada
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Simpson - Sears
Thursday, September 17th, 1953 at 9:15 a.m.
25 years
New name
Largest retailer in Canada
Sears in Mexico
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First opened in 1947
Merger with Grupo Carso
Sears in the 80’s
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Sear’s aggressively pursues financial
services
Emerging competition
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Discount Stores
Specialty Stores
Challenges
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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
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Remodeled departments (Power 7)
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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
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Cut inventory held with out increasing stock outs
 Warehouse and distribution changes
Changes in Stores
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National business manager appointed
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Buyers were responsible for pricing and product
mix for one national format
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Now, oversees each of the Power 7 departments
to more successfully compete against each
departments niche market.
Slow to remodel though…!
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By 1992, only the automotive and appliance
formats were in place nation wide.
Store Changes
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1993, close 113 unprofitable stores…
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Invested in more floor space for promoting
fashion merchandise
Point of sale registers, IT
Merchandise Assortment Planning System
MAPS
The Catalog
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Major money lost
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145 million in 1991, 165 million in 1992
Didn’t utilize customer database
Poor service
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No toll free 800 number
1993 closure of catalog operations
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Saved money invested in retail restructuring
Transportation/Distribution
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1990, created separate company SLS
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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
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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
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2002 Class Action FLSA
Waiting pays
Bankruptcy Issues
Customer Satisfaction Issues
SWOT
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Strengths
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Employees
Name
Sears Credit Card
Strategic partnerships
Merger with K-mart
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Larger customer base
2370 stores in USA
Strong corporate history
Name/Brand recognition
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Weaknesses
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Integration of supply
chains
Poor online sales
Kmart store size
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Sears is 180-200K
sq.ft.
K-mart is 40-194K sq.ft.
Fashion merchandise
Old Run Down stores
SWOT
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Opportunities
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Cost savings through
economies of scale
Expansion into Hispanic
market niche in US
HUGE customer database
Strategic Alliances
Cash in on “Americanism”
Enhance global operations
Improve free cash levels
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Threats
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Internet site
Competition
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JCPenny, Wal-mart
 Target
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Bad Public relations
Buy, Sell, or Hold???
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Hold for little or no risk
Buy, moderate risk, potential to make $
Current Month
Last Month
Two Months Ago
Three Months Ago
Strong Buy
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Buy
3
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3
3
Hold
3
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3
Sell
1
1
1
1
Strong Sell
0
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Current stock comparison
Yahoo Finance
Sources
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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