Sears 2008 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2008 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 103

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103

in association with full-line stores and 27 Sears Auto Centers are operated out of Sears Essentials/
Grand stores. In addition, there are 30 free standing Sears Auto Centers that operate independently of
full-line stores. Sears also extends the availability of its product selection through the use of its
sears.com website, which offers an assortment of home, apparel and accessory merchandise and
provides customers the option of buying through the Internet and picking up their merchandise in one
of our full-line and specialty stores. We have announced plans to close 14 broadline stores in the first
part of 2009.
• Specialty Stores—1,233 specialty stores located across all 50 states and Puerto Rico, located primarily
in free-standing, off-mall locations or high-traffic neighborhood shopping centers. Specialty store
operations primarily consist of:
• 872 Sears Hometown Stores (formerly known as “Dealer Stores”)—Primarily
independently-owned stores, predominantly located in smaller communities and averaging 8,700
square feet offering appliances, consumer electronics, lawn and garden equipment, hardware and
automotive batteries. Most of our hometown stores carry proprietary Sears brands, such as
Kenmore, Craftsman, and DieHard, as well as a wide assortment of national brands.
• 49 Sears Home Appliance Showrooms—Innovative stores averaging 5,000 square feet that have a
simple, appliance only showroom design that are strategically positioned in high growth suburban
areas. Sears Home Appliance Showrooms offer the best advantages of our Sears Full-Line Stores
combined with the Hometown Store customer service standard.
• 110 Sears Hardware Stores and 86 Orchard Supply Hardware Stores—Neighborhood hardware
stores averaging 40,000 square feet that carry Craftsman brand tools and lawn and garden
equipment, DieHard brand batteries and a wide assortment of national brands and other home
improvement products. 114 of these locations also offer a limited selection of Kenmore brand
home appliances.
• 16 The Great Indoors Stores (4 of which will close in the first part of fiscal 2009)—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.
• 82 Outlet Stores—Locations offering overstock and/or distressed appliances, consumer
electronics, lawn and garden equipment and other merchandise at a discount.
• Lands’ End—Lands’ End, Inc. (“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, and international businesses. Lands’
End has 14 retail stores, averaging 8,600 square feet, which offer Lands’ End merchandise primarily
from catalog and Internet channel overstocks. In addition, Lands’ End has 222 “store within a store”
departments inside Sears Domestic broadline locations. The retail sales in those full-line locations are
included in the results of our full-line stores.
• Commercial Sales—We sell Sears merchandise, parts, and services to commercial customers through
our business-to-business Sears Commercial Sales and Appliance Builder/Distributor businesses.
•Sears Commercial Sales provides appliances and services to commercial customers in the single-
family residential construction/remodel, property management, multi-family new construction,
and government/military sectors.
• Our Appliance Builder/Distributor business offers premium appliance and plumbing fixtures to
architects, designers, and new construction or remodeling customers, and is currently operating in
seven markets with 30 showrooms.
• Home Services—Product Repair Services, the nation’s largest product repair service provider, is a key
element in our active relationship with more than 38 million households. With over 10,000 service
technicians making over 12 million service calls annually, this business delivers a broad range of
retail-related residential and commercial services across all 50 states, Puerto Rico, Guam and the
3