Sears Holdings Corporation
Company Name: Sears Holdings Corporation
Founder: Company formed because of merger
Kmart Holdings Corporation proclaimed its aim to purchase Sears, Roebuck and Company on November 17, 2004. The merger was finalized on March 24, 2005, and the new corporate entity was named as Sears Holdings Corporation. They announced that it would still operate its facilities under the Kmart and Sears labels.
The merger transpired because of the following factors that were considered at that time:
· Sears had started to invest in new big-box stores and had purchased numerous locations that were held by Kmart. The merger would greatly accelerate the process.
· The merger would save the combined companies $300 million a year, specifically in administration and supply chain expenses.
· By utilizing their fused real estate, the brands owned by both companies could be made more accessible by their intended market groups. The revenue increase was expected to be $200 million a year.
· It was estimated that there would be an increase in revenue per unit area if an establishment of a consumer-focused corporate culture shared between the two companies would occur.
· Furthermore, the preservation of both companies’ labels would allow the two component companies to concentrate on different consumer markets without estranging either group.
The new corporate entity formed by the merger is led by a board of directors made up of members from the two component companies; three members from Sears’ board and seven from Kmart. Owners of shares in Kmart Corporation got one share in Sears Holding Corporation. The shares of the other component company stock were changed into a combination of 45% cash and 55% stock.
The company then altered numerous Kmarts and Big Kmarts by transforming their names from “Kmart” to “kmart.” this was to make Kmart shops look more advanced for the current times.
The company presently operates 3,800 retail locales, has 355,000 personnel under its employ, and made $50.70 billion in revenue in 2006.
· Edward Lampert – Chairman
· Alan J. Lacy – President and CEO of Kmart and Sears Retail
· J. Miles Reidy – CFO