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Sears Holdings Company
SHLD
Good Life, Great Price.Game Room Consultants
David GretzJosh Goldsmith
Ben HeilyPat Hand
Video
Sears History Richard Sears 1886 Watch Reseller 1893 Founded 1931 Allstate
Insurance 1945 1 Billion in Sales 1953 First
International Presence
1973 Sears Tower 1981 Dean Whitter &
Coldwell Banker Bought
1985 Discover Card 1993 Coldwell Banker
Sold 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 customerBuild and align teamsKnow how to make money
How We Work Together: Teamwork
IntegrityAccountabilityCoaching for executionPositive energyRecognition through results
Sears Offerings Brands
Craftsman
Kenmore
Diehard
Lands End
Product Categories
ApparelAppliancesAuto/motorcycle suppliescamping & rec equipmentlawn and gardenfurniture/ home accessoriestools and hardwarebabyelectronics and computershealth and wellnessjewelrymiscellaneous
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
Employees Name Sears Credit Card Strategic partnerships Merger with K-mart
Larger customer base 2370 stores in USA
Strong corporate history Name/Brand recognition
Weaknesses Integration of supply
chains Poor online sales Kmart store size
Sears is 180-200K sq.ft.
K-mart is 40-194K sq.ft. Fashion merchandise Old Run Down stores
SWOT Opportunities
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
Threats Internet site Competition
JCPenny, Wal-mart Target
Bad Public relations
Buy, Sell, or Hold??? Hold for little or no risk Buy, moderate risk, potential to make $
Current stock comparisonYahoo Finance
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
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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