Sears Holdings Case Study

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Sears Holdings Corporation is an American holding headquartered in Hoffman Estates, IL. is the parental company of retail brands, Sears and Kmart. It was formed after the merging of Kmart Holdings Corporation and Sears, Roebuck and Co. Besides the Sears and Kmart, the Sears Holdings also own the brands Craftman, Kenmore and DieHard. It has 3,472 retail locations under the operating of Sears, Kmart, and other subsidiaries. The businesses of Sears Holdings cover retail, home services, auto centers, pharmacies etc. Their business reached 49 states in the U.S. Moreover, they also have businesses in Canada. At the same time, Sears Holdings also owns a huge number of real estate(Sears Holdings Company, 2016).
If we only look at the numbers shown above, it seems this company did a really good job. However, the fact is …show more content…

First, it is true that the whole retail industry environment is in the recession, it had some influence on Sears Holdings. The whole industry is eroded by e-commercial. Nearly all the participants are suffering. But it had a higher loss than other companies. So it is not the main reason of Sears Holdings closed such many stores. If it can be operating under an advanced management system, they can deal with this problem easily and even complete its transition before the recession.
Second, Sears Holdings holds its asset too long. As we learned in finance class, the most important for a company is the cash. However, the huge amount of cash is tied on their properties. Because of this, they have less liquidity to deal with the problem like the current situation. Moreover, besides slowing down their growth, it also makes them too heavy to transit from their original business. This unhealthy financial structure brings them in an unsustainable economic

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