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Sears Holdings Business Analysis

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Running head: Sears Holding Business Analysis

Sears Holdings Business Analysis Steven G Cole MGT/521
Leo Shelton

Sears Holdings is an icon in the retail business since its founding in 1925. It survived the depression and many economic cycles since its founding. With the purchase of Kmart out of bankruptcy in 2005 and the unexpected recession of 2008 Sears has struggled financially. Their strategy of selling niche items of higher quality and brand names has not fared well in this valued based purchasing recession. They have continued to lose large amounts of money and continue sell off assets to raise capital. The CEO has announces new business strategy to implement to change the course of the company.
Since the acquisition of Kmart in 2005 sales have declined steadily year after year. Last year alone Sears and Kmart had a total lose of 1.4 billion dollars. This year that amount is down to 421 million through the 3rd quarter. The continued movement of customers to discount stores like WalMart and Target has continued to erode the customer base at Sears and Kmart. Sears reputation of rundown stores and poor customer service is helping lead the way to the slow demise of the once retail giant. Sears is a leader in ecommerce investment, but poor customer experience in the store is translate to apprehension of customers to return to Sears online (Skariachan, 10/17/2011).
In February 2012 in a note to shareholders, CEO Edward Lambert issued a lengthy letter to shareholders addressing the financial situation of Sears Holdings and the steps that were being implemented to change overall financial health of the company.
The Board of directors has developed two new strategies. One involves a new funding strategy and another involves a new business strategy. The company has also developed a new funding plan to manage the liquidity of the business. He…...

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