Company Analysis: Sears Holding Corporation

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Company Analysis: Sears Holding Corporation

Sears Holdings Corporation (SHC) is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Formed in the later part of the 19th century it was the largest retail company in the country until the early nineties. SHC is currently the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. As a result of its merger with Kmart in 2005, SHC also has Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart. SHC operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. In recent years Sears has undergone major changes in order to maximize its profits and beat its competitors. In the past several decade Sears has been the place to go shop for home goods, clothing, and fitness equipment and auto repairs. As time progressed they became very comfortable with what they hard as other companies such as Wal-Mart, Target, Lowes, JC Penny crept in and reaped a chunk of its market. In a struggle to re-invent itself, it tries to maintain focus on its primary and secondary target markets.

The Sears Holding Corporation is a multinational corporation with retailers purchasing products in the United States, Canada, Mexico and Puerto Rico. It is the fourth largest retailer within the United States, with over 3900 locations and sells many different marketable goods for consumers. These goods include products such as tools, branded clothing, appliances, sporting goods, electronics, home maintenance and repair, and automotive from many different retailers ( The Sears Holding Corporation is a result of the merger between Kmart Holding Corporation with the Sears Roebuck Co., which occurred in 2005, and the headquarters is located in Hoffmann Estates, Illinois. The consolidated subsidiaries include Sears, Roebuck and Co., Lands’ End Inc., LRFG, LLC, Sears Brands, LLC, Sears Canada, Inc., Sears Financial Holdings Corporation, Sears Reinsurance Company, Ltd., Kmart Holding Corporation, Kmart Management Corporation, Kmart Corporation, and the Sears Holdings Management Corporation( Brief History

The Sears Roebuck Corporation was founded by Richard Warren Sears and Alvah C. Roebuck in 1893. Sears started as a jeweler who made a profit by selling watches. The most innovative and quite possibly the most famous method of sales synonymous with Sears was the Sears Catalog. Providing pictures of the products, the prices, and a handy item that could be ordered on a regular basis for sales was by far an ingenious method of marketing. Consumers would be able to purchase items with no markup, have knowledge of their budgets required for purchases, and be somewhat assured of the quality of the product based upon the appearance, color, and general attractiveness. The catalog spearheaded many different marketable ideas and mainly products which could be sold, thus expanding Sears’ enterprise. Mainly from the early 1900’s throughout the 1980’s, Sears maintained its stronghold in America’s consumer market, especially in the 40’s and 50’s with its tremendous expansion. However, towards the 90’s and 2000’s, as many other big businesses arrived, divestiture, as well as problems associated with employee wage issues, Sears’ marketability dropped off until its merger with Kmart in 2005 ( Kmart first opened in 1962 and was founded by Sebastian S. Kresge. It was a relatively successful corporation and utilized marketing ideas within the store, namely “Blue Light Specials” which would entice customers to purchase the “blue light” or discounted items while they were shopping for their products. Unfortunately, due to failed ideas regarding...
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