The merger between Sears and Kmart was a very big event in business. At the time both companies were in the top three in sales along with Walmart. A summarized look of the history and background of Sears before the merger all started in 1866, When Mr. Richard W. Sears created a watch company that he named R.W. Sears. This company was in Minneapolis, Minnesota and the watches were only sold via mail orders. The following year the company decided to settle in Chicago as their first real location and Mr. Sears hired his first employee named Alvah C. Roebuck, who was a watchmaker. Then in 1888, the first ever catalog that included Mr. Sears watches and jewelry was established. One year later Mr. Sears sells this newly started company and starts another company that was named Sears, Roebuck and Co. A man named Julius Rosenwald, a wealthy clothing line owner, decided to buy out Mr. Roebucks side of the company. Around the same time ownerships are switching the first large catalog for the company was published. Then in 1911 Sears then created their first testing laboratory. By the end of 1913 the company introduces the very popular brand known as Kenmore. After the launch of this brand the company begins to bring in tons of more revenue and decides to create a savings and profit sharing funds for Sears employees. But a thing to remember is that Sears did not actually open a retail store until 1925 that was located a few miles outside of Chicago. In 1931 Sears went into another
The Wal-Mart company was established on July 2, 1962 in Rogers, Arkansas (History Timeline). The company was based on the vision of Sam Walton, who believed in giving his customers the lowest prices, anytime, anywhere. By 1967 the Walton family owned 27 different stores, and in 1969 they officially incorporated, becoming Wal-Mart Stores, Inc. Just a year later in 1970 Wal-Mart went National, proving the wide spread appeal of Sam Walton's beliefs (History). This same year Wal-Mart became a publicly traded company, with its first shares priced at 16.50. A short year later the company was listed in The New York Stock Exchange (History Timeline). The 80's were a major success for this company. In 1983 the first Sams Club opened, this was and still is a store that sells product in bulk to small businesses and individuals. In 1988 the first Wal-Mart Super center opened. The Super center combined a full scale supermarket with general merchandise to create one stop shopping convenience (History). In 1992 the company suffered a hard hit when Sam Walton passed away at the age of 74. Although they lost the man at the heart of the company they were determined to carry on with his vision, and so they did. In 1996 they opened their first stores in China (History Timeline). By 2002 they reach the top of the Fortune 500 ranking of Americas largest companies. In 2012 Wal-Mart celebrated 50 successful years of business. Today the company employs 2.2 million associates worldwide and serves
In 1895 they released a 532-page catalog offering everything from women’s shoes to firearms and buggies. (A Brief Chronology of Sears History, n.d.). Business expanded so quickly that within 15 years of starting Sears, Roebuck and Co grew revenue by a factor of more than 50 times from $750k to over $38 million. They also commissioned and built a 3 million square feet mail-order fulfilment plant, at the time the largest business building in the
Our recommendation is to take Sears Holdings Corp. (SHLD) private through a private equity buyout. After doing so, we recommend implementing a centralized management structure and recruiting retail-savvy executives for the upper management team. We then recommend focusing on increasing value by capitalizing on SHLD’s real estate holdings through leasing agreements and increasing partnerships with complementary enterprises. Also, we recommend improving employee retention rates and retaining exclusive rights to private brands. Finally, we recommend focusing on a long-term strategy to continue to maximize SHLD’s ecommerce platforms. We believe these recommendations will lead to long-term stability through increases in customer base and
Lowe’s is a hardware store that sell products from vacuum and dishwashers to wood and other hardware equipment. Lowe’s sell products for home improvement and construction. Lowe’s was originally founded in Wilkesboro, North Carolina in 1921 by Lucius Smith Lowe. His daughter Ruth inherited the store in 1940 after Lucius passed away. She then sold the franchise to her brother Jim. Jim partnered with Carl Buchan in 1949 under the management of Buchan. Jim and Carl had several disagreements as far as the expansion and diversification so in 1954 the partners split making Carl the sole owner. He successfully expanded the business to other cities in North Carolina. Then he passed away in 1960 leaving the store to his executive team of five people. They made the company public in 1961. The former headquarters for Lowe’s was originally located in Wilkesboro, now located in Mooresville, North Carolina. The once small town business has expanded to a well-known name brand is currently located in several countries.
By 1895, Sears’s mail order business was gaining market acceptance and the Sears catalog expanded to 532 items consisting of ‘soup to nuts’ products for their customers (Sears Archive, 2012), supporting the theory that early innovators do not have a restriction on what they bring to market (Innovation Zen, 2006). Sears’s core competencies are innovation, selling, advertising, and merchandising (Sears Archive, 2012).
Nordstrom was co founded 1901 by a 30 year old man named John W Nordstrom and his partner Carl Wallin. At age 16, John W of Sweden left his home and moved to Alaska where he struck gold. While in Alaska, he met a man named Carl Wallin, “who owned a shoe repair shop in downtown Seattle” (Nordstrom Employee, 2006). The two decided form a partnership and open a shoe store entitled Wallin & Nordstrom.
The company offers an array of products and services which appeals to a large target audience. From the weekend warrior to the professional craftsmen Lowe’s has it all. Lowe’s has just about anything to build or repair a home and even decorate it. If one were to go to the home page, they would see a long list of different types of products and services they offer. Some of the major categories they offer are appliance, building supplies, doors & windows, heating & cooling, home décor, paint, plumbing, and tools.(6). Not only can one goes to Lowe’s to buys just about anything needed for the home, but the company will even deliver the items to one’s home or place of business (7). They even offer free local delivery on all appliances costing
Sears Holdings is a relatively new company, having only been created in November of 2004 (Barbash & Barbaro, 2004). At that time, Kmart Holdings purchased Sears, Roebuck, and Co. The corporation decided it would operate stores under both names, and the merger was officially completed in March of 2005. The shareholders voted to close the deal, or it would not have been able to take place. Now the company is called Sears Holdings, and it operates both Sears and Kmart stores (Barbash & Barbaro, 2004). The company also markets both brands without blending them or favoring one over the other. There were several reasons why the companies chose to combine.
Sears Holding Corporation is the fourth largest retailer in the United States and Canada. Its subsidiaries include Sears, Roebuck and Co. as well as K-Mart. The closing of the merger between Sears and K-Mart took place on March 24, 2005. Sears has more than 4,000 retail stores across the United States, Canada, Puerto Rico, and Guam. Sears offers products and services through over 2,700 branded and affiliated stores. Sears operates 894 broad-line stores and 1,354 specialty stores. Sears’ broad-line stores are mall-based locations. The specialty stores include Sears Hometown Stores that are mostly independently owned, Sears Home Appliance Showrooms, Sears Hardware Stores, Sears Auto Centers,
Sears, Roebuck and Co began in the 19th century and sold farm supplies and consumer items as a small mail order company. The first Sears retail store opened up in Chicago on the 2nd February 1925 in the building named the Merchandise. This store had included a soda fountain and an optical shop. The first detached and separate retail store opened up on the 5th October 1925 in a city called Evansville in Indiana. During the summer season in 1928 3 more Chicago department stores opened newly, one on the 63rd and Western a second on the south side at Kenwood and 77th, and the third at north side at Lawrence and Winchester Street. In 1929
Home Depot direct competitor is Lowe’s for this reason, Lowe’s has stores in the following locations United States, Canada and Mexico. On the other hand, Home Depot has stores in these same areas. Lowe’s was founded in 1946, since then they have grown from a small hardware store to a FORTUNE® 500 home improvement company and serving approximately 17 million customer a week in these areas. Their loyal customers are professional builders, do-it-yourself homeowners, and third party professional. Lowe’s sales for 2016 were $65.0 billion and their earnings were $3.1 billion.
Sears Holdings Corporation is a company that came from two very well known organizations, Sears and Kmart. Both companies go back even farther than the 1900s and unfortunately both companies experienced financial difficulty at one point. With the merger Sears Holdings Corporation has the experience of both organizations as well as their different style of operating. Along with an improved customer base and a new outlook Sears Holdings Corporation is experiencing financial growth.
Wal-Mart was founded in 1962 and has the ROE of 20%. Wal-Mart also offers store Credit Card, but unlike Sears, it is Chase Manhattan Bank rather than its own credit company. Wal-Mart also boosts the annual sale by diversifying products as Sears does, but Wal-Mart also has different stores to target at the customers of various market segments, such as Wal-Mart Discount Store, Wal-Mart Supercenters and Sam’s Clubs.
The newly formed entity began acquiring a number of savings and loans (S&Ls) and added numerous financial services subsidiaries throughout the 1970s and 1980s. Expansion began in earnest in 1981 when Sears purchased the Dean Witter Reynolds brokerage organization and real estate agency Coldwell
According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.