Sears, Roebuck and Co Case Study

Sears, Roebuck and Co.

Overview

Sears, Roebuck and Co. is the leading retailer of home appliances in the United States. Sears, Roebuck and Co. is an ideal retailer compared to its competitors, because of the consolidated approach that the company has established over the years. They are not only leaders in home appliances, but they reach consumers with different needs, such as: tools, fitness equipment, home and garden, automotive repair and maintenance, and apparel. Sears, Roebuck and Co. also provides different homes services to customers, which consist of home repair, maintenance, installation, cleaning, and home improvement.

Richard W. Sears made his way into the retail industry by receiving a shipment of watches that was unwanted by a neighboring jeweler, while working in the load and coal industry. He purchased and sold them for a great profit. He realized at that point that he wanted to be in the retail industry and started his watch company called, R.W. Sears Watch Company in 1886(http://www.searsarchives.com/history1886.htm). In 1887, he became business partners with watchmaker Alvah C. Roebuck and they formed the corporation Sears, Roebuck and Co. in 1893. Sears began to merge in to a retail store in the mid 1900’s and by this time there sales exceeded over one billion dollars. They began to grow and developed thousands of full time and specialty retail stores that were under their corporate umbrella, Sears Holding Corporation. Sears merged with Kmart in 2005, because shareholders felt as if this would be the best decision for both companies as they began to see financial downfall. Both companies are now a part of Sears Holding Corporation and the headquarters are located in Hoffman Estates, Il (http://www.searshodings.com/about). Sears have 867 full line domestic retail stores located in all fifty states and in Puerto Rico. Sears also operates in Canada with 500 stores currently in operation. These stores offer many products from appliances, tires to apparel and are located mainly in shopping malls that also have tire and car maintenance centers. Sears also have over 1300 specialty stores located throughout all fifty states, Puerto Rico, and Guam. These stores are located in free standing areas or high traffic neighborhood shopping centers. Specialty store carry Sears products, and many of the products are from showrooms, distressed and overstocked items that need to be sold at discounted prices. Many of these stores closed at the beginning of 2012. Kmart will also have many stores that will close at the beginning of 2012. In April of 2012, Sears announced its separation of the hometown stores and outlet stores. Sears Holdings expects that the separation of these businesses will raise approximately $400 million to $500 million in proceeds (http://web.ebsohost.com.ehost/detail).

Financial Statements

In