Profile: Sears Holdings Corp (SHLD.O)
Sears Holdings Corporation (Holdings) is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. (Sears) and 500 full-line and specialty retail stores in Canada operating through Sears Canada Inc. (Sears Canada), a 95%-owned subsidiary. The Company operates in three segments: Kmart, Sears Domestic and Sears Canada. As on January 28, 2012, it had 38 domestic supply chain distribution centers, of which 12 were owned and 26 were leased for terms ranging from 3 to 5 years. Of the total, 11 primarily support Kmart stores, 23 primarily support Sears stores and four support both Sears and Kmart stores. On December 31, 2011, the Company completed the spin-off of its interest in Orchard Supply Hardware Stores Corporation. In April 2012, it sold eleven Sears full line store locations to General Growth Properties. In April 2012, it added MetaScale as a wholly owned subsidiary.
As of January 28, 2012, the Company had 465 domestic store warehouses, customer call centers and service facilities (including 20 facilities related to its appliance builder/distributor business), which are leased for terms ranging generally from 3 to 5 years or are part of other facilities. Holdings is the parent company of Kmart and Sears. The Company’s KENMORE, CRAFTSMAN, DIEHARD and LANDS’ END brands are in retailing. The Company’s trademarks and service marks include APOSTROPHE, CANYON RIVER BLUES, COVINGTON, BASIC EDITIONS, SHOPYOURWAY and SMART SENSE. It has the right to sell an exclusive line of Jaclyn Smith products through July 2014 (with an option to extend for an additional three-year term, subject to certain conditions). It also has the right to sell an exclusive line of Joe Boxer products through December 2015 (with an option to extend for up to two additional five-year terms, subject to certain conditions).
At January 28, 2012, Holdings operated a total of 1,305 Kmart stores across 49 states, Guam, Puerto Rico, and the United States Virgin Islands. The store count consists of 1,279 discount stores, averaging 94,000 square feet, and 26 Super Centers, averaging 169,000 square feet, and includes 60 Kmart stores that it planed to close in fiscal 2012. Kmart stores are one-floor, free-standing units that carry an array of products across many merchandise categories, including consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables and apparel, including products sold under such labels as Jaclyn Smith and Joe Boxer, and certain Sears brand products (such as Kenmore, Craftsman, and DieHard) and services. During the fiscal year ended January 28, 2012 (fiscal 2011), it offered an assortment of appliances, including Kenmore-branded products, in all of its locations. There are 978 Kmart stores that also operate in-store pharmacies. The Super Centers generally operate round the clock and combine a full-service grocery along with the merchandise selection of a discount store. There are also 22 Sears Auto Centers operating in Kmart stores. Sears Auto Centers offers a variety of professional automotive repair and maintenance services, as well as a full assortment of automotive accessories. Kmart continues to offer its layaway program, which allows customers to cost-effectively finance their purchases. In addition, it has expanded the ways its customers can receive their purchases, allowing its customers to buy online and pick up in store. This service, powered by MyGofer, is available in over 900 Kmart stores through either myGofer.com or kmart.com. Kmart also sells its products through its kmart.com Website.
At January 28, 2012, Sears Domestic operations consisted of Full-line Stores, Specialty Stores, Lands’ End, Commercial Sales and Home Services. Full-line Stores include 867 broadline stores, of which 834 are full-line stores located across all 50 states and Puerto Rico. These stores are primarily mall-based locations averaging 134,000 square feet. Full-line stores offer an array of products and service offerings across many merchandise categories, including appliances, consumer electronics, tools, sporting goods, outdoor living, lawn and garden equipment, certain automotive services and products, such as tires and batteries, home fashion products, as well as apparel, footwear, jewelry and accessories for the whole family. Its product offerings include its Kenmore, Craftsman, DieHard, Lands’ End, Covington, Apostrophe, and Canyon River Blues brand merchandise. In addition, at January 28, 2012, it operated 33 Sears Essentials/Grand stores located in 19 states.
During fiscal 2011, it converted 17 Sears Essentials/Grand stores to Kmart stores. These stores are primarily free-standing units averaging 120,000 square feet, offering health and beauty products, pantry goods, household products and toys in addition to the offerings of the typical mall-based store. There are five Sears Essentials/Grand stores that operate in-store pharmacies. The Company also has 741 Sears Auto Centers operating in association with full-line stores and nine Sears Auto Centers operating out of Sears Essentials/Grand stores. In addition, there are 37 free standing Sears Auto Centers that operate independently of full-line stores. Sears also extends the availability of its product selection through the use of its sears.com Website, which offers an assortment of home, apparel and accessory merchandise and provides customers the option of buying through a mobile app or online and picking up their merchandise in one of its full-line or specialty stores.
Specialty Stores include 1,338 specialty stores (including the 37 free standing Sears Auto Centers noted above) located across all 50 states, Puerto Rico and Guam, in free-standing, off-mall locations or high-traffic neighborhood shopping centers. Specialty store operations primarily consist of Sears Hometown Business, 116 Outlet Stores, 96 Sears Hardware Stores and nine The Great Indoors Stores. Sears Hometown Business consists of 986 Sears Hometown Stores and 75 Sears Home Appliance Showrooms. The 1,338 specialty stores include 43 Sears Hometown Stores, 10 Sears Hardware Stores and nine The Great Indoors Stores.
Lands’ End, Inc. (Lands’ End) is a direct merchant of traditionally styled casual clothing, accessories and footwear for men, women and children, as well as home products and soft luggage. These products are offered through multiple selling channels including landsend.com, an apparel websites, as well as catalog mailings, and international businesses. Lands’ End has 14 retail stores, averaging 8,600 square feet, which offer Lands’ End merchandise primarily from catalog and Internet channel overstocks. In addition, Lands’ End has 290 store within a store departments primarily inside Sears Domestic broadline locations.
The Company sells Sears merchandise, parts, and services to commercial customers through its business-to-business Sears Commercial Sales and Appliance Builder/Distributor businesses. Sears Commercial Sales provides appliances and services to commercial customers in the single-family residential construction/remodel, property management, multi-family construction, and government/military sectors. Its Appliance Builder/Distributor business offers premium appliance and plumbing fixtures to architects, designers, and new construction or remodeling customers, and is operating in six markets with 20 facilities.
Home Services include product repair services. With over 8,800 service technicians making over 15 million service and installation calls annually, the business delivers a range of retail-related residential and commercial services across all 50 states, Puerto Rico, Guam and the Virgin Islands under either the Sears Parts and Repair Services (A&E) Factory Service brand names. Commercial and residential customers can obtain parts and repair services for brands of products within the appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems categories. The Company also provides repair parts with supporting instructions for do-it-yourself customers through its searspartsdirect.com Website. Smaller items for repair can be brought into Sears Parts & Repair Centers located throughout the United States or into many Sears Full-line, hometown and hardware stores. The business also offers protection agreements, product installation services and Kenmore and Carrier brand residential heating and cooling systems. Home Services also includes home improvement services (primarily siding, windows, cabinet refacing, kitchen remodeling, roofing, carpet and upholstery cleaning, air duct cleaning, and garage door installation and repair) provided through Sears Home Improvement Services.
Sears Canada, 95%-owned subsidiary of Sears, conducts retail operations in Canada similar to those conducted by Sears Domestic, with a greater emphasis on apparel and other softlines than in the United States stores. At January 28, 2012, Sears Canada operated a total of 122 full-line stores, 378 specialty stores (including 48 furniture and appliance stores, 285 dealer stores operated under independent local ownership, four appliance and mattress stores, 30 Corbeil stores, and 11 outlet stores), 17 floor covering stores, 1,734 catalog pick-up locations and 108 travel offices. Sears Canada also sells its products through its sears.ca Website.
The Company competes with Walmart, Target, Kohl’s, J.C. Penney, Macy’s, The Home Depot, Lowe’s, Best Buy, Amazon and Hudson’s Bay Company.
Sears Holdings Corp
3333 Beverly Road
HOFFMAN ESTATES IL 60179
Company Web Links
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- Sears closes Chicago flagship store as it moves to online retail
- Sears closes Chicago flagship store as it moves to online retail
- UPDATE 2-Sears Canada to cut more than 1,600 jobs