Sears Holdings Corporation, through its subsidiaries, operates as a retailer in the United States and Canada. The company operates approximately 2,300 full-line and 1,100 specialty retail stores in the United States operating through Kmart and Sears and 370 full-line and specialty stores in Canada operating through Sears Canada, Inc. (Sears Canada), a 70%-owned subsidiary.
Segments
The Company operates in three segments, Kmart, Sears Domestic and Sears Canada.
Kmart
As of February 3, 2007, the company operated a total of 1,388 Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,333 discount stores, averaging 93,000 square feet, and 55 Super Centers, averaging 165,000 square feet. Most Kmart stores are one-floor, free-standing units that carry an assortment of general merchandise, including products sold under labels, such as Jaclyn Smith, Joe Boxer and Martha Stewart Everyday. The company offers proprietary Sears brand products, such as Kenmore, Craftsman, and DieHard products, and services within certain Kmart stores.
During 2006, the company added Craftsman tool assortments into Kmart locations nationwide. In addition, as of February 3, 2007, approximately 180 Kmart stores were also selling an assortment of major home appliances, including Kenmore-branded products. Approximately 1,100 Kmart stores also operate in-store pharmacies. Kmart also sells its products through its kmart.com Website.
Sears Domestic
Full-line Stores: The company operates 861 Full-line stores located across all 50 states and Puerto Rico, primarily mall-based locations averaging 134,000 square feet. Full-line stores offer various products across many merchandise categories, including home appliances, consumer electronics, tools, fitness and lawn and garden equipment, certain automotive services and products such as tires and batteries, home fashion products, as well as apparel, footwear and accessories for the whole family, including Lands' End merchandise. As of February 3, 2007, the company operated a total of 74 Sears Essentials and Sears Grand stores located in 25 states, primarily free-standing units averaging 113,000 square feet and offering health and beauty, pantry, household products and toys in addition to the offerings of the typical mall-based store.
Specialty Stores: The company operates 1,095 specialty stores located across all 50 states and Puerto Rico, located primarily in free-standing, off-mall locations or neighborhood shopping centers.
817 Dealer Stores: These are primarily independently-owned stores, located in smaller communities and averaging 8,900 square feet offering appliances, consumer electronics, lawn and garden equipment, hardware and automotive batteries. Dealer stores carry proprietary Sears brands, such as Kenmore, Craftsman, and DieHard, as well as an assortment of national brands.
111 Sears Hardware Stores and 85 Orchard Supply Hardware Stores: These hardware stores averaging 40,000 square feet that carry Craftsman tools and lawn and garden equipment. Approximately 100 locations also offer a limited selection of home appliances.
16 The Great Indoors Stores: Home decorating and remodeling superstores, averaging 143,000 square feet, dedicated to the four main rooms of the house: kitchen, bedroom, bathroom and great room.
47 Outlet Stores: These locations offering overstock and/or distressed appliances, consumer electronics and lawn and garden equipment at a discount.
Commercial Sales: This business primarily targets home builders, remodelers and property managers for appliance purchases.
Direct to Customer: The Direct to Customer business includes the direct merchant business of Lands' End, Inc. (Lands' End). Lands' End is a major 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, as well as catalog mailings, international businesses and 15 Lands' End retail stores. These retail stores, averaging 8,500 square feet, offer Lands' End merchandise primarily from catalog and Internet channel overstocks.
Home Services: This business delivers various retail-related residential and commercial services across all 50 states and Puerto Rico under the Sears Parts & Repair Services and A&E Factory Service brand names. Commercial and residential customers can obtain parts and repair services for major brands of products within the home appliances, lawn and garden equipment, consumer electronics, floorcare products, and heating and cooling systems categories. Smaller items for repair can be brought into Sears Parts & Repair Centers located throughout the United States or to Sears Full-line store. This 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, HVAC and carpet cleaning) provided through Sears Home Improvement Services.
Sears Canada
Sears Canada conducts retail operations in Canada, with an emphasis on apparel and other softlines than in the U.S. stores. As of February 3, 2007, Sears Canada operated a total of 123 full-line stores, 250 specialty stores (48 furniture and appliance stores, 158 dealer stores operated under independent local ownership, 5 appliances and mattresses stores, 28 Corbeil stores and 11 outlet stores), 50 floor covering stores, approximately 1,900 catalog pick-up locations and 100 travel offices. Sears Canada also conducts business over the Internet through its Web site, sears.ca.
Competition
The company’s competitors include Wal-Mart, Target, Kohl's, JC Penney, Home Depot, Lowe's and Best Buy. Home Depot, Lowe's and Best Buy are major competitors in relation to its home appliance business. Sears Canada competes in Canada with Hudson's Bay Company.
History
Sears Holdings Corporation was founded in 1899.
