Sears 2009 Annual Report Download - page 3

operating out of Sears Essentials/Grand stores. In addition, there are 29 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 11
broadline stores in the first part of 2010.
• Specialty Stores—1,284 specialty stores located across all 50 states and Puerto Rico, in freestanding,
off-mall locations or high-traffic neighborhood shopping centers. Specialty store operations primarily
consist of:
• 907 Sears Hometown Stores—Primarily independently-owned stores, predominantly located in
smaller communities and averaging 8,800 square feet offering appliances, consumer electronics,
lawn and garden equipment, and hardware. Most of our hometown stores carry proprietary Sears
brands, such as Kenmore, Craftsman, and DieHard, as well as a wide assortment of national
brands.
• 60 Sears Home Appliance Showrooms—Innovative stores averaging 5,100 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.
• 106 Sears Hardware Stores and 88 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. 117 of these locations also offer a limited selection of Kenmore brand
home appliances.
• 12 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.
• 93 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 293 “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 26 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 9,500 service
technicians making over 12 million service calls annually, this business delivers a broad range of retail-
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