Sears 2006 Annual Report Download - page 3

• Specialty Stores—1,095 specialty stores located across all 50 states and Puerto Rico, located primarily
in free-standing, off-mall locations or high-traffic neighborhood shopping centers, and including the
operations of:
• 817 Dealer Stores—Primarily independently-owned stores, predominantly 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 a wide assortment of national
brands.
• 111 Sears Hardware Stores and 85 Orchard Supply Hardware Stores—Neighborhood hardware
stores averaging 40,000 square feet that carry Craftsman brand tools and lawn and garden
equipment, a wide assortment of national brands and other home improvement products.
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—Locations offering overstock and/or distressed appliances, consumer electronics
and lawn and garden equipment at a discount.
• Commercial Sales—This business primarily sells appliances to home builders, remodelers and
property managers.
• Direct to Customer—The Direct to Customer business includes the direct merchant business of Lands’
End, Inc. (“Lands’ End”). Lands’ End is a leading 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, one of
the leading apparel websites, 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—Product Repair Services, the nation’s largest product repair service provider, is a key
element in the Company’s active relationship with more than 46 million households. With over 10,000
service technicians making over 13 million service calls annually, this business delivers a broad range
of 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 all major brands of products within the home
appliances, lawn and garden equipment, consumer electronics, floor care 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 any 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, a consolidated, 70% -owned subsidiary of Sears, conducts retail operations in Canada similar
to those conducted by Sears Domestic, with a greater emphasis on apparel and other softlines than in the U.S.
stores. In addition, Sears Canada conducted credit operations prior to the November 15, 2005 sale of its Credit
and Financial Services operations to JPMorgan Chase & Co. (“JPMorgan Chase”).
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
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