Kmart's Home Strategy Evolves

Kmart has been making substantial strides in improving and enhancing its home offerings, with the introduction of a broader portfolio of new brands and new designs. From the Country Living and the Jaclyn Smith collections to Cannon, Kenmore, Essential Home and more, Kmart's style, quality, and value continue to enhance the shopping experience for its customers.

"Last year, the Kmart team of designers, each with diverse backgrounds and expertise began a process of developing new product lines. We have continued to strive to deliver even higher quality, more distinctive design, and greater variety in home fashions," said Doug Wurl, VP/GMM, Home Fashions for Sears Holdings. "With that in mind, last fall we announced our Jaclyn Smith Home collection. Prior to that launch we added Cannon, the nation's most recognized line of towels and bedding. We also recently unveiled the Country Living collection, based on the number one selling home fashions magazine on newsstands, with heirloom appeal to complement all of our other home fashion offerings at Kmart. Our customers have responded positively, truly embracing our new brands and home fashions products."

Wurl continued: "After declining to pursue an extension of our contract with Martha Stewart, we are moving beyond an offering that centered on one brand. Kmart is a pioneer in bringing quality, value and style to the American public with our strong stable of brands, each with a distinctive look and feel. With supportive brand partners, we have the ability to innovate in ways that will surprise and delight our customers by bringing new brands, exceptional value and multi-channel experiences to our stores and to our customers' homes every day. Our customers have told us that they want value, variety and style and, with our designers taking the lead on design and product quality standards, we are continuing to give our customers exactly what they want."

Wurl added: "In addition to launching trusted, national brands, we've responded to our customers' needs by offering a number of shopper-friendly options--like layaway and Christmas Club--that empower them to shop on their terms. We would also invite our customers to look at http://www.kmartdesign.com/ to experience our exciting new design efforts and visit kmart.com to see our expanded home fashions offerings available online as well."

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. We are the nation's largest provider of home services, with more than 12 million service calls made annually. Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For more information, visit Sears Holdings' website at www.searsholdings.com.

First Call Analyst:
FCMN Contact:

SOURCE: Kmart

CONTACT: Sears Holdings Public Relations, +1-847-286-4681

Web Site: http://www.kmart.com/