Sears 2010 Annual Report Download - page 3

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Essentials/Grand stores located in 24 states. These stores are primarily free-standing units averaging
117,000 square feet, offering health and beauty products, pantry goods, household products and toys in
addition to the offerings of the typical mall-based store. There are 22 Sears Essentials/Grand stores that
operate in-store pharmacies. We also have 768 Sears Auto Centers operating in association with full-
line stores and 19 Sears Auto Centers operating 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 a mobile app or online and picking up their merchandise in one of our full-line and
specialty stores. We have announced plans to close 6 broadline stores in the first part of 2011.
• Specialty Stores—1,354 specialty stores (including the 30 free standing Sears Auto Centers noted
above) located across all 50 states, Puerto Rico and Guam, in free-standing, off-mall locations or high-
traffic neighborhood shopping centers. Specialty store operations primarily consist of:
• 938 Sears Hometown Stores—Primarily independently-owned stores, predominantly located in
smaller communities and averaging 7,700 square feet offering appliances, consumer electronics,
lawn and garden equipment, and hardware. Most of our hometown stores carry proprietary Sears
brand products, such as Kenmore, Craftsman, and DieHard, as well as a wide assortment of
national brands.
• 59 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 89 Orchard Supply Hardware Stores—Neighborhood hardware
stores averaging 42,000 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. 134 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.
• 102 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 292 “store within a store”
departments inside Sears Domestic broadline locations. The retail sales in those full-line store 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 facilities.
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