The Sears - Kmart Merger: Sears Holdings

Many people are under the false impression that Sears owns Kmart, when in fact Kmart bought-out Sears. The merging of these two companies formed what is known today as Sears Holdings. A brief history of this merger is important to understand this failing company today.

Sears began as a mail-order catalogue in the 1800's and became one of the most profitable retail companies in the 1900's. The fatal flaw of Sears is when they began expanding, trying to compete in department store retail with Walmart and Target. Around the time of the new millennium, both Sears and Kmart were failing companies. Eddie Lampert acquired Kmart in 2002 when the company had filed bankruptcy, then bought Sears in 2005, hoping that a merger of the companies would make a huge impact. Sears Holdings was born. According to Eddie Lampert:

"We don't want two separate cultures but to blend it into one great culture. The idea is to make the stores more competitive while staying focused on the customer."

Lampert's plans did not work. In 2003, Kmart closed over 300 stores and laid-off 34,000 workers. Fast-forward to today, and the Sears Holdings Corporation is still failing. America's failing economy is not helping the company, either. On February 26, 2009, Sears Holdings announced the closing of 24 stores, which is much better than everyone expected. 

Lampert thought that size, strength and stock price would make a company powerful, but he was wrong. 

The Corbin Kmart is not in extreme danger of being closed down. Many employees realize that as the company continues to fail, they lose job security. As many people keep come in to evaluate the store, it is clear that Sears Holdings may not be in existence much longer.