Sears Holdings Company
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Transcript Sears Holdings Company
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