Sears 2014 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2014 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 143

  • 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
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

3
cost-effectively finance their purchases both in-store and online. In addition, we have expanded the ways our
members and customers can receive their purchases, allowing our members and customers to buy online and pick up
in store. This service, powered by MyGofer, is now available in over 900 Kmart stores via either mygofer.com or
kmart.com. Kmart also sells its products through its kmart.com website and provides members and customers
enhanced cross channel options such as buying through a mobile app or online and picking up their merchandise in
one of our Kmart or Sears Full-line stores.
Sears Domestic
At January 31, 2015, Sears Domestic operations consisted of the following:
• Full-line Stores—717 stores, of which 709 are Full-line stores located across all 50 states and Puerto
Rico. These stores are primarily mall-based locations averaging 155,000 square feet. Full-line stores
offer a wide array of products and service offerings across many merchandise categories, including
appliances, consumer electronics/connected solutions, tools, sporting goods, outdoor living, lawn and
garden equipment, certain automotive services and products, such as tires and batteries, home fashion
products, as well as apparel, footwear, jewelry and accessories for the whole family. Our product
offerings include our proprietary Kenmore, Craftsman, DieHard, Covington, Canyon River Blues,
Metaphor, Outdoor Life, Structure and Apostrophe brand merchandise, and other brand merchandise
such as Roadhandler, Ty Pennington Style and Alphaline. Lands' End, Inc. continues to operate 236
"store within a store" departments inside Sears Domestic Full-line locations. In addition, at January 31,
2015, we operated 8 Sears Essentials/Grand stores located in 8 states. These stores are primarily free-
standing units averaging 170,000 square feet, offering health and beauty products, pantry goods,
household products and toys in addition to the offerings of the typical mall-based store. We also have
634 Sears Auto Centers operating in association with Full-line stores and 7 Sears Auto Centers operating
out of Sears Essentials/Grand stores. In addition, there are 27 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 members and customers the option of buying through a mobile app or online
and picking up their merchandise in one of our Full-line or Kmart stores.
• Specialty Stores—29 specialty stores (primarily consisting of the 27 free standing Sears Auto Centers
noted above) located in free-standing, off-mall locations or high-traffic neighborhood shopping centers.
• 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 10 markets with 17 facilities.
• Home Services—Product Repair Services, the nation's largest product repair service provider, is a key
element in our active relationship with more than 39 million households. With approximately 7,300
service technicians making over 13 million service and installation calls annually, this business delivers
a broad range of retail-related residential and commercial services across all 50 states, Puerto Rico,
Guam and the Virgin Islands under either the Sears Parts & Repair Services or A&E Factory Service
trade names. Commercial and residential customers can obtain parts and repair services for all major
brands of products within the appliances, lawn and garden equipment, consumer electronics, floor care
products, and heating and cooling systems categories. We also provide repair parts with supporting
instructions for "do-it-yourself" members and customers through our searspartsdirect.com website. 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, roofing, carpet and upholstery