Sears Holdings Corporation (NASDAQ: SHLD) today announced that it is implementing an organizational structure and operating model designed to simplify the way its business lines are managed and create greater autonomy and focus for the business unit management teams.
The new structure is built on five types of business units that enable each organization to focus on their core categories and capabilities: operating businesses, support, brands, online and real estate. The operating business units will consist of the company's current lines of business such as home appliances, electronics, and apparel. The support units will include the functions that provide operational and administrative support to the operating businesses including marketing, store operations, customer strategy and finance. The brand units will be responsible for growing the value of Sears Holdings brand portfolio. The real estate business unit and an online business unit will focus on increasing the sales productivity of the company's physical and virtual real estate.
Each business unit will have a designated leader and an advisory group comprised of senior Sears Holdings executives who will provide direction and oversee the business unit's performance. The leadership of each unit will have a separate, internal profit and loss statement to allow greater focus on managing the profitability of the unit, and rapid decision making to capitalize on opportunities and mitigate risks.
"We are convinced that our businesses can operate more efficiently and effectively and we continue to look for ways to make that happen," said Sears Holdings Chairman Edward S. Lampert. "By creating smaller focused teams that are clearly responsible for their units, we increase autonomy and accountability, create greater ownership and enable faster, better decisions. Our board of directors, our senior leadership team and I believe this will make Sears Holdings a more responsive and competitive company in the future."
Mr. Lampert added: "At the time of the merger, a centrally managed structure was essential to control costs and focus on integrating the two companies. Now, it's time to empower individual businesses and teams to focus on the customer experience and performance. Stronger business units will be better able to support each other, build a stronger company, and be more attractive to partners and talent. We are not doing this overnight; this is a phased transition to enable our business units and their key partners to learn how to leverage the new model."
This press release contains forward-looking statements about our expectations regarding the introduction of new organizational structure and operating model. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Risks and uncertainties include the possibility that we fail to properly implement and realize the expected benefits from the new organizational structure and operating model, that we fail to offer products and services that satisfy the desires of our customers, or other factors outside the control of Sears Holdings. Actual results may differ materially from those set forth in the forward-looking statements. We intend the forward-looking statements to speak only as of the time made and does not undertake to update or revise them as more information becomes available.
About Sears Holdings Corporation
Sears Holdings Corporation is the nation's fourth largest broadline retailer with over $50 billion in annual revenues and approximately 3,800 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. It also has Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart and in Canada by Sears Canada. The company is the nation's largest provider of home services, with more than 13 million service calls made annually. For more information, visit Sears Holdings' website at http://www.searsholdings.com/.
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SOURCE: Sears Holdings Corporation
CONTACT: Sears Holdings Public Relations, +1-847-286-8371
Web site: http://www.searsholdings.com/