Sears Hometown Store Overview


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A smart business model that affords you the opportunity to partner with a great American Brand, Sears.

Own and operate your very own Sears Hometown Store today!

Contact: for more information;
Charles Todd 847.452.7786 or

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Sears Hometown Store Overview

  1. 1. Sears Authorized Retail Hometown Stores
  2. 2. Mission To Be The Premier Retailer of America’s Best Hardlines Brands in Your Hometown
  3. 3. Sears Hometown Store Coverage 1,000 Plus Hometown Stores Open
  4. 4. Hometown Stores Strategic Priorities <ul><li>Focus on Sears Core Hardlines Retail Businesses </li></ul><ul><ul><li>Home Appliances </li></ul></ul><ul><ul><li>Home Electronics </li></ul></ul><ul><ul><li>Lawn and Garden </li></ul></ul><ul><ul><li>Tools </li></ul></ul><ul><ul><li>Fitness, Exercise and more </li></ul></ul><ul><li>Create a Customer Focused Place to Shop </li></ul><ul><ul><li>Merchandise Selection </li></ul></ul><ul><ul><li>Competitive Pricing </li></ul></ul><ul><ul><li>Visual Presentation </li></ul></ul><ul><li>High Performance Partnership </li></ul><ul><ul><li>Local-Ownership that is Closer to the Customer </li></ul></ul><ul><ul><li>Premier Customer Service </li></ul></ul><ul><li>Win for Owner, Customer and Sears </li></ul>
  5. 5. Sears Advantages <ul><li>Sears Strong Financial Position </li></ul><ul><ul><li>2.5 Billion Cash – available on hand Cash </li></ul></ul><ul><ul><li>2.5 Billion Line of Credit – not used </li></ul></ul><ul><li>Ability to Leverage Sears Strengths </li></ul><ul><ul><li>World-Class Private &quot;Brand&quot; Names </li></ul></ul><ul><ul><ul><li>Kenmore, Craftsman and DieHard </li></ul></ul></ul><ul><ul><li>National &quot;Brand&quot; Names </li></ul></ul><ul><ul><ul><li>GE, Whirlpool, Maytag, Frigidaire, Amana, Husqvarna, Sony </li></ul></ul></ul>
  6. 6. Sears Advantages <ul><li>Expanding Hometown Stores Off Shore </li></ul><ul><ul><li>Opened Hometown Store in Guam – November 2010 </li></ul></ul><ul><ul><li>5 other off shore locations </li></ul></ul><ul><ul><ul><li>Trinidad… by year end 2011 </li></ul></ul></ul><ul><ul><ul><li>Bermuda… July open planned </li></ul></ul></ul><ul><ul><ul><li>Costa Rica… new construction, open November </li></ul></ul></ul><ul><ul><ul><li>Dominican Republic and Brazil in discussions </li></ul></ul></ul>
  7. 7. Sears Advantages <ul><li>Sears is the #1 credit provider among retailers, serving more than 60 million households </li></ul><ul><ul><li>Sears Card, SearsCharge Plus, Sears Gold Mastercard, Commercial One, Discover, MasterCard, VISA and American Express </li></ul></ul><ul><li>Nationwide Service Organization </li></ul><ul><ul><li>In-Home and Shop Service </li></ul></ul><ul><ul><li>Product Repair for all Major Brands </li></ul></ul>
  8. 8. Sears Advantages <ul><li>Exciting Advertising Program Supporting Your Store </li></ul><ul><ul><li>Local Print Advertising </li></ul></ul><ul><ul><li>National Ad Campaigns (print and electronic) </li></ul></ul><ul><li>On-Going Training </li></ul><ul><ul><li>Initial Hands-On Training Approximately 60-70 Hours </li></ul></ul><ul><ul><li>Field Training Team </li></ul></ul><ul><ul><li>Professional Sales Training By District Sales Manager </li></ul></ul><ul><ul><li>Annual Hometown Celebration – product Expo </li></ul></ul><ul><ul><li>Web Based -Learning </li></ul></ul><ul><ul><li>In-Store Product Training conducted by Vendor Representatives </li></ul></ul><ul><ul><li>Hometown Stores Publication -Sales Today </li></ul></ul>
  9. 9. Sears Advantages <ul><li>Price Match Plus </li></ul><ul><ul><li>We will match any competitors price, + give your customer 10% of the difference = Your Competitive Advantage </li></ul></ul><ul><li>Satisfaction Guaranteed </li></ul><ul><ul><li>Customers Think Value, Quality, Trust... Customers Think Sears! </li></ul></ul><ul><ul><li>Builds a Lifetime Relationship with the Customer </li></ul></ul><ul><li>Hometown Representative Council </li></ul><ul><ul><li>(Established in 1993) </li></ul></ul><ul><ul><li>Members are Elected by their Peers and Serve Voluntarily </li></ul></ul><ul><ul><li>Vehicle for Open Two-Way Communication </li></ul></ul><ul><ul><li>Substantial Contribution towards Continuous Business Improvement </li></ul></ul>
  10. 10. Sears Support Resources <ul><li>Field Development Team </li></ul><ul><ul><li>Regional Market Development Managers </li></ul></ul><ul><ul><li>Facility Development Specialists </li></ul></ul><ul><li>Field Sales Management Team </li></ul><ul><ul><li>Region and District Sales Management </li></ul></ul><ul><ul><li>Business Process Consultant Team (Operational Training) </li></ul></ul><ul><li>Hometown Support Team (800 number) </li></ul><ul><li>Home Office Team </li></ul>
  11. 11. Sears Internet Tools <ul><li>“Big Store” Ability in a Small Store Presentation </li></ul><ul><ul><li>Access to Complete Merchandise Assortment </li></ul></ul><ul><ul><li>Merchandise Lines Not Carried in Hometown Stores </li></ul></ul><ul><li>Shop the Competition </li></ul><ul><li>Dealer Net – private Hometown Store site </li></ul><ul><ul><li>Product Assortments </li></ul></ul><ul><ul><li>Merchandise Layouts </li></ul></ul><ul><li>Microsoft Outlook email System </li></ul>
  12. 12. Sears Market Share Source: TRAQLINE Kenmore/ Craftsman Market Share Sears Total Market Share Washers Dryers Freezers Refrigerators Dishwashers Cooking Microwaves Vacuums Mowers Tractors 24.0 24.9 28.1 24.2 23.8 20.7 14.6 7.9 26.4 29.9 % 34.9 35.5 34.5 34.4 34.7 30.4 23.6 12.3 31.1 31.5 % Treadmills 26.9 38.6
  13. 39. Back-Office System <ul><li>Same System used in Sears Mall Stores </li></ul><ul><li>Tracks Daily and Monthly Sales Transactions </li></ul><ul><ul><li>Cash and Credit </li></ul></ul><ul><li>Report Generation </li></ul><ul><ul><li>Commission Report - By Associate </li></ul></ul><ul><ul><li>Credit Transactions - By Customer </li></ul></ul><ul><ul><li>Customer Orders and Deliveries </li></ul></ul><ul><li>Sign Writer Prints Merchandise Signs </li></ul><ul><li>Retains Customer Information </li></ul>
  14. 40. Point-Of-Sale System <ul><li>Credit Transaction Processing </li></ul><ul><ul><li>Ability to Process Rapid Credit Applications </li></ul></ul><ul><li>Merchandise Reservation System </li></ul><ul><ul><li>Determines Warehouse Availability and Delivery Dates on Customer Ordered Merchandise </li></ul></ul><ul><li>Inventory Maintenance And Control </li></ul><ul><ul><li>Automatic Replenishment in RIM </li></ul></ul><ul><ul><li>Create Service Repair Orders </li></ul></ul><ul><li>Price Look-Up </li></ul><ul><li>Promotional Rebates </li></ul>
  15. 41. Sears Authorized Retail Hometown Stores Compensation Program
  16. 42. Commission <ul><li>A Variable Rate Commission is paid as Specified in the Hometown Agreement </li></ul><ul><li>The Commission Structure Rewards Total Sales Performance based on the Hometowns &quot;Balance of Sale&quot; (BOS) </li></ul>Good 3% Better 7% Best 10% Premium 15.5% Top-of-Line 19.8%
  17. 43. Laundry Automatic Washers
  18. 44. Commission (cont.) <ul><li>Commission Percentage is Applicable to Regular and Promotional Priced Merchandise </li></ul><ul><li>The Hometown will Receive a Monthly Action Plan and supporting Marketing Materials prior to the Promotional Events indicating Merchandise Assortment and Commission Percent by Item </li></ul>
  19. 45. National Weighted Average Commission 9.25% per contract 10.0% YTD
  20. 46. Additional Income Sources <ul><li>Protection Agreements </li></ul><ul><li>Delivery / Installation Income </li></ul><ul><li>Business Allowance </li></ul><ul><li>Parts Program </li></ul><ul><li>Take the Lead Program </li></ul><ul><li> </li></ul><ul><li>Licensed Business </li></ul>
  21. 47. Hometown Incentive Bonus Program <ul><li>Monthly Bonus </li></ul><ul><li>New Market Incentive </li></ul><ul><li>First 5 Years of Net Sales </li></ul>
  22. 48. <ul><li>Low Initial Start-Up Capital </li></ul><ul><li>No Upfront Fees or Royalties </li></ul><ul><li>No Inventory Expense </li></ul><ul><li>No Transportation Cost </li></ul><ul><li>No Advertising Expense * </li></ul><ul><li>No Interior or Exterior Signing Expense </li></ul><ul><li>*Many owners do additional advertising on their own </li></ul><ul><li>(We supply ad slicks) </li></ul>Why The Sears Authorized Retail Hometown Program Stands Above The Rest... Impact On Cost
  23. 49. Typical Capital Investment Requirements Start up cost will vary by store Owner Expense Interior Fixtures Building (Purchase/Lease) Insurance/Telephone/Utilities Professional Accounting & Legal Advice Material Handling Equipment and Delivery Truck Point-of-Sale Equipment, Hometownnet PC Supplies (Office/Warehouse) Employee Wages/Taxes/Benefits Reserves for Working Capital (3-6 months)
  24. 50. Hometown Income & Expense Estimate Worksheets Hard Copy Signed & Dated
  25. 51. Weekly Market Action Plan & Update Tracking Worksheet <ul><li>Complete Due-Diligence of Market </li></ul><ul><li>Emailed Completed Worksheet </li></ul><ul><li>Emailed Completed 5 Year Proforma </li></ul><ul><li>Candidate Background Check </li></ul><ul><li>Measurements of Building </li></ul><ul><li>Store Form Completed </li></ul><ul><li>Photos of Building/Artist Rendering </li></ul><ul><li>Preliminary Floor Plan Completed </li></ul><ul><li>Copy of Lease & Negotiations Completed </li></ul><ul><li>Business Plan Completed </li></ul><ul><li>Marketing Plan Completed </li></ul><ul><li>Store Hours Worksheet </li></ul><ul><li>Mock Schedule </li></ul><ul><li>Second Interview with DSM </li></ul><ul><li>Candidate Authorization Letter (CAN) </li></ul><ul><li>New Market Incentive Completed </li></ul><ul><li>Target Market Incentive Completed </li></ul><ul><li>Miscellaneous – Specify </li></ul><ul><li>Sears Corporate Market Review Board </li></ul>Action Items Plan Start Revised Completion Comments and Next Steps W/Dates Date Date Date Date EXCEL FORMAT <ul><li>Timeline should reflect 3 to 5 day segments to completion </li></ul><ul><li>Send MAP Update via email to me EVERY Wednesday by 9 PM CST </li></ul><ul><li>Keep track of all contacts and record meetings on contact report tab </li></ul><ul><li>Plan Date = Planned Completion Date </li></ul><ul><li>Start Date = Task Started Date </li></ul><ul><li>- Revised Date = Any Revisions </li></ul><ul><li>- Completion Date = Task Completed </li></ul>
  26. 53. Where Do We Go From Here? <ul><li>Candidates Will Have 1 Week to Complete Their Initial Research on the Market </li></ul><ul><li>Sears Will Process Interview / Survey Results and Build Profile on Potential Candidates </li></ul><ul><li>Sears Will Conduct a Background Check on the Primary Principals of the Business </li></ul><ul><li>Candidate “CAN” Letter Issued </li></ul>
  27. 54. Sears Authorized Retail Hometown Stores What other owners have done
  28. 60. Sears Authorized Retail Hometown Stores Welcome to Sears