Sears Holdings Company

Report
Sears Holdings
Kody Harper
Jie Lian (Jet)
Enkhtamir Otgondemberel
Jon Hoffart
Stephen Ngunjiri

1886 - Sears company founded

1887 - Alvah Roebuck

1889 - Sold watch business

1893 - Sears Roebuck and Company

1906 - Publicly traded

1925 - First store opens

1980 - Acquired other companies

1993 - Sold Sears Tower

2003 - Sold Discover Card

2005 - K-mart purchases Sears
Sears Holdings Revenue from
2004 - 2008
$60,000
$50,000
$40,000
$46,770
$50,703
$53,016
$48,911
$30,000
$20,000
$19,843
$10,000
$0
2008
2007
2006
2005
2004

Current Profile
◦ 9th Largest retailer
◦ Annual Revenue $50 billion
◦ Operates 3,900 retail outlets

Future Profile
◦ Develop online sales
◦ Lower prices
◦ Sell more private label products

Strengths:
◦ Merger of Kmart & Sears
◦ Adaptation of sales strategies
◦ Strategic store location

Weaknesses:
◦ Executive departures
◦ Poor sales

Opportunities:
◦ Venture into foreign markets
◦ Innovation and mergers
◦ Increase private labels

Threats:
◦ Competition
◦ Decline in customer demand
◦ Depression of equity market

Retailer type
◦ Department Store
 JC Penny, Macy’s, Sears
◦ Discount Store
 Wal-Mart, Target
◦ Off-Price retailer
 Ross
◦ Specialty Store
 Home Depot

Current Profile
◦ 12% of employment in US
◦ 3.8 trillion in sales revenue in 2009
 Wal-Mart – 404 billion in 2009
Global Department Stores Market Share: 2008
9.50%
8.20%
6.10%
Sears
Macy's
JC Penny
5.10%
Kohl's
Other
71.10%
Global Department Stores Market Segmentation:
2008
Other (including
food), 9.50%
Health & Beauty,
8.90%
Electricals, 5.30%
Furniture, 10.00%
Homewares,
11.70%
Clothing &
Footwear, 54.60%

Future trend
◦ E-Commerce
◦ Product Cycle
◦ Demand

Wal-Mart Stores, Inc.

Kohl’s Corporation

Home Depot, Inc.




Established in 1962
2.1 million employees
Supercenter, neighborhood market, discount
store
Abundant capital, business model, global
operation, sales strategies




Formed in 1962
Middle income group of people
Family oriented products
1,000 stores in 48 states
◦ 126,000 employees
◦ 16,389 million revenue in 2009

Efficient inventory management



Formed in 1978
World largest home improvement retailer
2,234 stores
◦ 322,000 employees
◦ Revenue exceeded
71,000 million in 2009

Professional, private brands,
special deployment center

“Shop Your Way”
◦ Revolve around customer

Many ways to shop
◦ Traditional stores
◦ Online
◦ Mobile devices

“Sears Blue Crew”

Traditional Store
◦ Hands on
experience
◦ Compare products
side-by-side

Online Stores
◦
◦
◦
◦
Open 24/7
Customization
Complements
Sears.com

Mobile Devices
◦ Sears2go
◦ Applications
 iPhone
 Blackberry
◦ Special text offers

“Sears Blue Crew”
◦
◦
◦
◦

Find the lowest price
Searches multiple competitors
Real-time price checks
Rebate submission
Different Types
◦ Appliance
◦ Electronics
◦ Fitness

Commercials



Web site design
Web site language
options
TV advertisement



Expansion to
emerging markets
Efficient
distribution channel
Integration of
brands

Good portion of market share

Creation of Sears “Blue Crew”

Focus on recommendations

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