Running head: SEARS HOLDING COMPANY
Sears Holding Corporation
Liberty University
BMAL 504
Group Project Outline
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SEARS HOLDING COMPANY
I. Description of Organization
A. Subsidiaries
1. Kmart Corporation
2. Sears, Roebuck and Co.
B. Industry: Department Store
C. Stock Symbol: SHLD
D. Location: Hoffman Estates, Illinois
E. Current Value: $39,881,000
F. Income
1. Total 2017 10K: $16, 702,000,000
a. Kmart: $5,618,000
b. Sears Domestic: $11,084,000
c. Merchandise: $13,409,000,000
d. Service: $3,293,000,000
2. 2016 10K: $22,138,000,000
a. Kmart: $8,650,000,000
b. Sears Domestic: $13,488,000,000
c. Merchandise: $18,236,000,000
d. Service $3,902,000,000
3. 2015 10K: 25,146,000,000
a. Kmart: $10,188,000,000
b. Sears Domestic: $14,958,000,000
c. Merchandise: $20,936,000,000
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SEARS HOLDING COMPANY
d. Service: $4,210,000,000
4. Trends from 2015-2017
a. Total revenue decreased by 34%
b. Kmart revenue decreased by 45%
c. Sears Domestic decreased by 26%
G. Employees: 89,000 Full time
H. Number of Stores
1. 2017
a. Kmart: 432
b. Sears Domestic
i. Full Line: 547
ii. Specialty: 23 (auto and appliances)
2. 2016
a. Kmart: 735
b. Sears Domestic
i. Full Line: 670
ii. Specialty: 25
3. 2015
a. Kmart: 941
b. Sears Domestic
i. Full Line: 705
ii. Specialty: 26
II. Change Process
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SEARS HOLDING COMPANY
This paper will evaluate the contributing factors that resulted in the downsizing of
Sears Holdings Corporation and ultimately cause them to file for Chapter 11 bankruptcy. Sears
Holdings Corporation is made up of two subsidiaries Kmart and Sears, Rock and Co that will be
analyze throughout this paper. There has been a steady declining trend over the past three years
that has led to the downsizing and closing of stores across the United States.
There are many factors that could have contributed to the downsizing of Sears
Holdings Corporation; of those is the decline in sales over a three-year span, the closing of stores
across the U.S., failure to compete with bigger companies, and in-store versus online purchases.
It is the purpose of this paper to determine if the above mentioned led to the downsizing. Will
the downsizing of Sears Holdings Corporation be enough to save the Sears brand?
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SEARS HOLDING COMPANY
References
Calandro, J. (2008). The Sears acquisition: a retrospective case study of value detection. Strategy
& Leadership, 36(3), 26-34. https://doi.org/https://doi.org/10.1108/10878570810870767
Driscoll, K. (2018, October 15). Sears Bankruptcy: 5 things you need to know. Dayton Daily
News (Online), pp. 1-2. Retrieved from http://ezproxy.liberty.edu/login?
url=https://search.proquest.com/docview/2120008961?accountid=12085
Issa, J. M. (2017). The rest of the story about the state of brick-and-mortar retail. American
Bankruptcy Institute Journal, 36(11), 36-37, 78-80. Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1966054711?accountid=12085
Lehavy, R., & Udpa, S. (2011). Kmart: Predicting bankruptcy, fresh start reporting, and valuation
of distressed securities. Issues in Accounting Education, 26(2), 391-419. Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/871222291?accountid=12085
Mhatre, N., Joo, S., & Lee, C. C. (2014). Benchmarking the performance of department stores
within an income elasticity of demand perspective. Benchmarking: An International
Journal, 21(2), 205-207. Retrieved from https://doi-org.ezproxy.liberty.edu/10.1108/BIJ-
03-2012-0021
Sears Holding Corporation 2017 Annual Report (2017). Retrieved from
https://searsholdings.com/invest/annual-reports
