Sears Kmart Merger Essay -- essays research papers

Due to slow sales and less traffic at both Sears and Kmart, the two have decided to merge creating one entity named Sears Holdings. Kmart has concur to buy Sears for $11 Billion. This puts Sears Holdings at the third largest retailer behind Wal-Mart and understructure Depot. Although Wal-Mart is a direct competitor with Kmart, Sears Holdings goal is non to compete with Wal-Mart directly, except find aras that have been overlooked by other retailers, and take vantage of the expanded line of products the new company has to offer. Sears has had higher sales than Kmart, so hundreds of Kmarts volition be transformed into Sears descents. As of now, most of Sears 870 stores are only found in m altogethers. The new strategy would be to equal to(p) Sears stores in current Kmart locations, to offer consumers with a different variety of products than whats currently available from large retailers like Kmart and Wal-Mart. Sears is known for selling items much(prenominal) as their exclu sive line of craftsman tools and Kenmore appliances. In the future these Sears exclusives volition be found in Kmart stores, and Kmart exclusives such as Martha Stewarts line of housewares will be found in Sears.This merger will bring a wide array of products to a larger group of consumers. Currently consumers tone to buy home appliances like stoves or refrigerators have to go to a mall with a Sears store or a specialty store like Best Buy or Circuit City. Not all consumers live near a mall, so buying from Sears may not be an option. Although bot...