Sears Holding Corporation Essay

Sears Holdings Corporation is a firm with a rich history. Prior to being the Sears Holding Corporation, which came to be due an acquisition by Kmart in 2005, the Sears brand can be traced back to 1886 where it was originally a mail ordering catalog. The first Sears store was opened in 1925. In recent years big box retail has suffered in growth a revenue due to new competitors into the market, ecommerce, and globalization.

With so many options, accessibility, and knowledge it has become a challenge for large retail chains to maintain and grow in this modern era. Since the formation of the Sears Holding Corporation the firm as struggled to remain afloat. As the cost of capital continues to increase the executive decisions have become even more

What this means is that the market is expecting this firm to not continue business operations in the near future. E-commerce has reshaped the retail landscape. Large chain retailer have to adjust to the changes in the industry quickly or they will face an ill fate such as bankruptcy or quite simply going out of business.

Over the past 5 years Sears Revenue, net profit, cash flow, and more have seen great declines. According to The Wall Street Journal Sears has lost 8.2 billion dollars since 2011. Revenue has fallen nearly 40% (KAPNER, 2017). In order meet the working capital needs required to continue business Sears Holdings has been selling assets, restructuring debt, and closing non profitable locations. Although this strategy may keep the firm afloat in the short run it is not viable in the long run. Like everything else in the world, assets are limited.

Currently Sears Holdings is considering selling off 2 of its brands, Kenmore and Diehard, as well as some of its service businesses. Recently, Sears sold its Craftsman brand, which they owned since 1923, for 900 million dollars (KAPNER, 2017). The firm received over 525 at the deals close from buyer Stanley Black & Decker, and appliance and power tool’s