Why did kmart and sears merge

Any potential gain for other retailers is "a drop in the bucket" compared to overall sales. As part of the bankruptcy, Sears will close of its remaining stores this year, many of which are located in shopping malls that are already struggling to adapt to changing consumer habits. On the other hand, successful "class A" malls might relish the opportunity to replace Sears with something more attractive to shoppers. Skip Navigation. Kmart and Sears shareholders each approved the combination at their special shareholder meetings held earlier today.

Edward S. Lampert, chairman of Sears Holdings, said, "This new enterprise will seek to leverage the combined strengths of Sears and Kmart to create greater long-term value than either could have generated on a stand-alone basis. Sears Holdings plans to offer customers a new, more compelling shopping experience with a differentiated and expanded product range. We believe Sears Holdings has the potential to be a great company with a truly great retail business.

Alan J. Lacy, vice chairman and chief executive officer of Sears Holdings said, "This combination accelerates Sears' off-mall strategy and gives customers a complete, convenient shopping solution. Shoppers will have greater access to the leading proprietary brands of both Kmart and Sears, along with financial services products and the industry's leading service organization. With a national store base of nearly 3, stores, we expect to be able to leverage our scale and strategically grow the business.

Aylwin B. For key facts about the deal, click here. Sears opened a new store concept, Sears Grand, last year in a bid to battle back against Wal-Mart, Target and Best Buy, which have moved rapidly into free-standing stores in cities and suburbia.

Kmart's apparel brands like Joe Boxer and Thalia Sodi have lower starting price points, so consumers could see some downward movement in prices in the apparel category. Industry consultant George Whalin went a step further, saying the merger could signal the end of the Kmart name.

I would be very surprised if Kmart doesn't completely go away in the two to three years, or become something completely different," he said. Will lower prices, better merchandise follow? View results The deal, announced Wednesday morning, will create the third-largest retailer in the country. The Kmart-Sears deal. What do you expect from the Kmart-Sears merger? View results. Play video Real or Windows Media. Ali Velshi reports on what the deal means for investors.