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

2.  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

3.  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

4.  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.

6.  Launched in Joliet, Illinois  Converted an entire Kmart store to a pick-up only site for internet orders.  Complete with a drive-through

7.  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

8.  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

9.  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

10.  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

11.  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

12.  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