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Sears Holdings

Kody Harper
Jie Lian (Jet)
Enkhtamir Otgondemberel
Jon Hoffart
Stephen Ngunjiri

History

1886 - Sears company founded

1887 - Alvah Roebuck

1889 - Sold watch business

1893 - Sears Roebuck and Company

1906 - Publicly traded

History

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

$46,770

$50,703

$53,016

$48,911

$40,000

$30,000

$20,000

$19,843

$10,000

$0
2008

2007

2006

2005

2004

Current and Future Profile

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

SWOT Analysis

Strengths:
Merger of Kmart & Sears
Adaptation of sales strategies
Strategic store location

Weaknesses:
Executive departures
Poor sales

SWOT Analysis

Opportunities:
Venture into foreign markets
Innovation and mergers
Increase private labels

Threats:
Competition
Decline in customer demand
Depression of equity market

Industry Analysis

Retailer type
Department Store
JC Penny, Macys, Sears

Discount Store
Wal-Mart, Target

Off-Price retailer
Ross

Specialty Store
Home Depot

Industry Analysis

Current Profile
12% of employment in US
3.8 trillion in sales revenue in 2009
Wal-Mart 404 billion in 2009

Industry Analysis
Global Department Stores Market Share: 2008

10%

8%
6%
5%

71%

Sears
Macy's
JC Penny
Kohl's
Other

Industry Analysis
Global Department Stores Market Segmentation: 2008

Other (including food); 9%


Furniture; 10%

Health & Beauty; 9%


Electricals; 5%

Homewares; 12%

Clothing & Footwear; 55%

Industry Analysis

Future trend
E-Commerce
Product Cycle
Demand

Competitors

Wal-Mart Stores, Inc.

Kohls Corporation

Home Depot, Inc.

Wal-Mart Stores, Inc.


Established in 1962
2.1 million employees
Supercenter, neighborhood market,
discount store
Abundant capital, business model, global
operation, sales strategies

Kohls Corporation
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

Home Depot, Inc.


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

Unique Sales Strategy

Shop Your Way


Revolve around customer

Many ways to shop


Traditional stores
Online
Mobile devices

Sears Blue Crew

Unique Sales Strategy

Traditional Store
Hands on experience
Compare products
side-by-side

Online Stores

Open 24/7
Customization
Complements
Sears.com

Unique Sales Strategy

Mobile Devices
Sears2go
Applications
iPhone
Blackberry

Special text offers

Unique Sales Strategy

Sears Blue Crew

Find the lowest price


Searches multiple competitors
Real-time price checks
Rebate submission

Different Types
Appliance
Electronics
Fitness

Commercials

Short-term
recommendations

Web site design

Web site
language options

TV advertisement

Long-term recommendations

Expansion to
emerging markets

Efficient
distribution
channel

Integration of
brands

Conclusion

Good portion of market share

Creation of Sears Blue Crew

Focus on recommendations