Presented by Greg Russo, Shawn Stormer, Britney Melcher and Lyndsey Robison

5 years ago, hedge-fund billionaire Edward S. Lampert merged Sears and Kmart and since then, the merchants have been shrinking.

So Sears has quickly created web sites and mobile-phone apps to help with their sales calling this campaign “Shop Your Way”

This is a way for Sears to play catch up with its competitors

Lampert promised because of the merger, that the sum of the entity would be eventually worth more than its parts.

Hasn’t happened Sears’ revenues fell 7.8 % last year to $46.8

bill

Online sales have increased in the past two years:◦ $2.7 Billion in 2008 (6% of total

company sales)◦ More than WalMart’s $1.7 Billion

In November 2009, critical month for shopping:◦ Unique visitors grew by 22% to

Sears.com and 42%to Kmart.com according to Compete, Inc.

Launched in Joliet, Illinois Converted an entire Kmart store to a pick-

up only site for internet orders. Complete with a drive-through

A team of 180 e-commerce whizzes began searching for a way to sell Kenmore Appliances and Craftsman tools in this age of iPhone apps and Twitter

Some of the e-commerce workers have experience from Orbitz.com and Amazon.com

Recently, the workers tested their phone creations:◦ Selected customers in the store◦ Took them to their laboratory upstairs◦ Testers sit across from subjects through a plate

glass window and speak through microphone◦ Camera watches the subjects eyes look around

the computer screen

Social networking with the help of Chicago Company, Viewpoints Network:◦ Launched MySears.com and MyKmart.com and

now have 400,000 users◦ Log in with facebook accounts and ask questions

about specific products and make reviews

Amazon is the largest online retailer with record revenue

Sears Marketplace◦ Sears took a page from Amazon and eBay Inc.

and created Sears Marketplace◦ Lists items from other sellers on its pages in

exchange for a cut of sales. Every purchase made, Sears collects a commission

of 7% to 20% Its total online merchandise options now tops 10

million items

Sears Personal Shopper◦ Allows customers to photograph passerby’s shoes

or other object of desire◦ Send picture to sales worker◦ They will find them for sale

◦ Amazon launched a similar app in 2008

Although all the efforts made, Sears still is not doing as well as hoped◦ MyGofer site is full of “rookie” mistakes and pick

up location terminal broken often◦ Operating over 400 money-losing stores that they

can not afford to close because short term costs exceed savings