Still number four

Once America’s largest retailer but still its fourth-largest, Sears Holdings Corp. may be well on its way to total eclipse, having recently announced the closing of between 100 and 120 more stores, on top of previous store-closings that have numbered in the hundreds. Stores to be closed include Sears units as well as some Kmarts, the other major retail brand owned by Sears Holdings. During the 2011 Christmas season, a boom sales period for all kinds of retailers, sales at Sears and Kmart stores declined from levels recorded the previous year, in some cases by as much as four or five per cent. Bought in 2005 by Edward Lampert, a hedge-fund investor, the company has seen sales slide every year since. Comparable or same-store sales have declined every year since 2006, falling a disturbing eight per cent back in 2008. Among other decisions, Lampert slashed store upkeep costs with the result that stores today are getting increasingly scruffy looking, further intensifying its sales problems. For the eight-week period ending Christmas Day, overall sales were down 5.2 per cent. The holding company, however, still generates $ 43.3 billion in sales and has been operating about 4 000 units in the U. S. and Canada. It also owns some of America’s best brand names: Craftsman, Kenmore and Die Hard. Craftsman is the number 1 brand name for tools, lawn and garden equipment and power tools, while Die Hard is a high-ranking name for batteries, and Kenmore for small and large appliances. Recently Sears Holdings has been offering Craftsman products to Ace Hardware, America’s largest dealer-owned hardware wholesaler, as well as some products to Menards, the number 3 home centre chain. Many industry observers believe Sears may ultimately simply market its branded products through other retailers. Its paint brand name is also well known, though not equal to the other three previously mentioned. Most Sears units are in large shopping malls, while Kmarts are stand-alone discount units, many of which have recently added groceries to their range, similar to actions taken by Walmart and Target, its two big discount competitors. While Walmart and Target have been upgrading their units, however, Kmart has not – and the differences are very noticeable. Download: