Sears 2011 Annual Report Download - page 3

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Essentials/Grand stores to Kmart stores and we plan to convert an additional 8 stores in the first half of
2012. These stores are primarily free-standing units averaging 120,000 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 5 Sears Essentials/Grand stores that operate in-store pharmacies. We also
have 741 Sears Auto Centers operating in association with full-line stores and 9 Sears Auto Centers
operating out of Sears Essentials/Grand stores. In addition, there are 37 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 or specialty stores.
• Specialty Stores—1,338 specialty stores (including the 37 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:
• Sears Hometown Business consists of the following:
• 986 Sears Hometown Stores—Primarily independently-owned stores, predominately located
in smaller communities and averaging 8,500 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.
• 75 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.
• 116 Outlet Stores—Locations offering overstock and/or distressed appliances, consumer
electronics, lawn and garden equipment and other merchandise at a discount.
• 96 Sears Hardware Stores—Neighborhood hardware stores averaging 28,000 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. 91 of these locations also
offer a limited selection of Kenmore brand appliances.
• 9 The Great Indoors Stores—Home decorating and remodeling superstores, averaging 142,000
square feet, dedicated to the four main rooms of the house: kitchen, bedroom, bathroom and great
room.
The 1,338 specialty stores include 43 Sears Hometown Stores, 10 Sears Hardware Stores and 9 The
Great Indoors Stores that we plan to close in the first half of 2012. In addition, on February 23, 2012,
we announced that we are currently planning to separate Sears Hometown and Outlet businesses and
certain hardware stores in the third quarter of 2012 through a transfer to electing shareholders.
• 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 290 “store within a store”
departments primarily inside Sears Domestic broadline locations.
• 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.
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