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Summer 2011

Sears Holdings Corporation Announces New CEO

On Feb. 24, 2011, the Board of Directors elected Lou D'Ambrosio as the CEO and president of Sears Holdings Corporation. Mr. D'Ambrosio most recently held the position of Chief Executive Officer at Avaya, a Fortune 500 global telecommunications and technology firm. Prior to his position at Avaya, he worked at IBM for 16 years, occupying various executive positions. Mr. D'Ambrosio holds a Bachelor of Science from Pennsylvania State and an MBA from Harvard. Mr. D'Ambrosio held an associate Town Hall meeting on June 1, 2011, at the Hoffman Estates Support Center, to discuss performance, strategy, culture, opportunities and challenges. Posed with the challenge to energize associates following disappointing first quarter results, Mr. D'Ambrosio communicated his vision for Sears Holdings, providing those watching a reason to believe in our company once again. Mr. D'Ambrosio began his presentation by establishing the top three criteria that matter most to him: 1) Play to Win: Sears Holdings isn't a spectator sport. We need the input, the participation, the insights and thoughtfulness of everyone. We all should have victory in our sights. 2) Execution - Get into fighting shape: of change, and outlined for associates his vision for the culture of the company: 1) Everything will begin and end with the customer. 2) Activity is Interesting; Results Count: Output and input are important to the company, but at the end of the day we exist to produce results. 3) Speed ­ with Purpose and Learning: We, as a company, need to move forward with direction and learn from what we do to provide the best quality products and services to our customers. The quicker we can do something, learn from it, and fix the problems, the better we will be. 4) No Spectators Allowed: We are raising the level of responsibility throughout the company. Open communication is vital. The leaders of the company need to be open to input, but we need the insights of our associates. Everyone needs to roll their sleeves up and be willing to get their hands dirty. 5) The Power of 10: If there are too many people in one meeting, productivity can suffer. Break assignments down into chunks, and reflect on what is vital to the successful completion of the task at hand. 6) Unwavering Integrity Trumps Everything. D'Ambrosio also provided a list of questions to gauge where

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We have to be held accountable for the promises we make. Brilliant ideas are great in theory, but it is the execution of brilliant ideas that make a successful company. 3) Culture - Create a thrilling and rewarding culture: Culture allows for the first two criteria to be sustainable. Culture acts as our foundation. Without culture, we cannot execute and we cannot achieve greatness. Mr. D'Ambrosio built upon his three criteria by clarifying the strategic thrust of the company: Become the leader in integrated retail: in store, online, at home Our company, Mr. D'Ambrosio believes, has the assets that give us the ability to combine store, online and at home to an extent no other company can match. Throughout the meeting, D'Ambrosio stressed the aspect

More ways to use Associate Discounts

Remember When? Increase in More Discounts Associate Equal More Discount on Savings for You! Fragrances and Sears Outlet Stores recently announced it is offering Cosmetics at eligible associates and retirees a 10 percent Sears! associate discount. This


At its peak in 1952, Sears sold 1,566 Allstate automobiles. The Allstate automobile disappeared from Sears stores in the fall of 1953.

Are you ready to save even more money on Sears' high quality products? The Sears Fragrance and Cosmetics team recently announced that eligible associates and retirees* can now receive an additional 10 percent discount on Fragrances and Cosmetics at Sears. This brings the total associate/retiree savings on purchases to 20 percent! This discount applies to: · Fragrances purchased in only Sears Full-line, Sears Grand and Sears Essentials stores or on · Cosmetics purchased in Sears Full-line stores only Now you can buy all your favorite scents and cosmetics and save even more!

*Qualifying associates and retirees must present their associate discount card at the time of purchase. Some restrictions and eligibility requirements apply. Please refer to the Sears Holdings Associate Discount Policy.

discount applies to merchandise purchased at Sears Outlet Stores. Your discount offers you reduced prices on all of the great products Sears Outlet sells including: refrigerators, washers, dryers, ranges, TVs, fitness equipment, mattress sets and so much more! You can be assured that products sold in our Outlet stores are new/in-box, one-of-a-kind, discontinued or reconditioned merchandise. All reconditioned merchandise must pass a rigorous testing/ approval process and comes with the manufacturer's original warranty. You may be asking yourself, "What if I don't live near a Sears Outlet Store?" That's the best part! No matter where you live in the country our outlet deals can be conveniently delivered directly to your doorstep. Our website,, now offers nationwide delivery for any Outlet product. We hope you take advantage of the new associate discount on merchandise already reduced 20 to 70 percent every day! Please help us by spreading the word about our stores and website.

Look for more archives throughout the newsletter.


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Meet the New CEO (cont. from Page 1)

the period of implementation ahead of us. "Change is never easy. But the change is going to be good for our company going forward." In order for this change to succeed we need to be proactive toward our goals. "We have an opportunity here to author one of the great next chapters of American business history," said D'Ambrosio. "I use the word author very specifically, because that's what everybody has to view themselves as. Not a passive reader, but an active author." By harnessing the assets we have, according to Mr. D'Ambrosio, nothing can stop us from moving forward. "Nobody has the breadth we have, nobody has the assets we have, nobody has the combination of in store, online, at home that we have," said D'Ambrosio.

Have You Joined The Mykmart and Mysears Communities Yet?

Here's how you can join: 1) Visit or 2) Create a Screen Name (this is the name other people will see when you're on the site, so don't use your full name) 3) Choose and confirm a Password 4) Enter your Email Address 5) Enter your Zip Code 6) Read and agree to the Terms of Service 7) Click on the Sign Up button Once you have joined the community, please click on the My Home tab at the top of the screen and complete your profile. If you have questions, click on the Feedback tab at the bottom of each page and tell us how we can help you.

the company is during this period of change, including: Are we obsessed with our customers and delivering an extraordinary experience each and every time ­ at the store, online and at home? Are we being hardnosed about ALL spending and investments, so that we can invest in the right areas?

What is getting in the way of the We will continue to provide virtuous cycle of great people updates in subsequent excited to come to work every newsletters as Mr. D'Ambrosio's day and nail the results? vision for the culture of the company continues to unfold. Mr. D'Ambrosio closed his presentation by addressing

Remember When?

The Joe Namath Signature Collection was offered in the 1984 Sears catalog.


Stories from Our Own American Heroes

Nordstrom returned home from Vietnam in October 1968. His mother organized a special welcomehome event for him. His entire family greeted him at the airport and a large banner, signed by several neighbors, was placed in their front yard. Nordstrom still holds on to that sign, a reminder of the love and support he received from those close to him during a time when soldiers were not welcomed back with the same adornment as today. He maintains contact with many of his friends from the unit and attended a reunion in Nashville, Tenn., 10 years ago.

It was 1965 and Gary Nordstrom was fresh out of high school when he joined the United States Army. Stationed in Okinawa, Japan, until 1967, he was then sent to Vietnam and assigned to the 1st Calvary Division (Airmobile). Nordstrom was placed in the 5th Battalion 7th Cavalry. The 7th Cavalry outfit holds historical significance ­ it's the same 7th Cavalry from the infamous "Battle of Little Bighorn," led by General Custer. Nordstrom's 1st Cavalry Division holds a very distinguished record from the Vietnam conflict. In fact, a movie with Mel Gibson ("We Were Soldiers") dramatized the Battle of the la Drang Valley with an emphasis on the role of the 1st and 2nd Battalion of the 7th Cavalry Regiment. The troops he served with will never be forgotten and the memory of those who were wounded or made the ultimate sacrifice for our country will remain forever.


girls, Kelly and Nicole, and a son, Paul. Nordstrom currently sells real estate with his wife, Gail, and lives in the same house his mom and dad purchased 60 years ago. Sears Holdings has continually placed a large focus on providing support and encouragement to our country's armed troops. In fact, the company recently teamed with First Lady Michelle Obama, Dr. Jill Biden and Secretary of Labor, Hilda Solis, to provide more career opportunities for military associates and their families. Lou D'Ambrosio, CEO and president, spoke at the event and expressed the company's excitement to be involved with the project. "It is an honor to be working with Mrs. Obama, Dr. Biden and Hilda Solis in a joint effort to provide opportunities for the heroes who have served for our country," D'Ambrosio said. The "Permanent Change of Station Promise" (PCS) is one of the ways we are showing our commitment to the collaboration. With the PCS Promise, the company will do everything in its power to give military associates and their family members who are employed by us a job at a Sears, Kmart or Lands' End store convenient to their new location when they are transferred. We demonstrated our pride for

Upon his return from the war, he found a job at a San Diego Sears store and assisted the men's department during the Christmas season. From there, he landed a full-time job in a Sears Outlet Store. Nordstrom went on to retire at the age of 55 as a store manager for Sears store 1358, Chula Vista, Calif. He has three children; twin

the military in the Atrium of the Hoffman Estates Support Center as well. On May 26, we hosted a Rally for Military Families. The event was sponsored by the Associate Military Support Network and Heroes at Home. Prior to the rally, the company also held a "Wreath Laying Ceremony" on May 23, which paid tribute to the National Moment of Remembrance. These are just a few of the ways our company shows support for the men and women who risk their lives so those of us at home can enjoy the freedom we are fortunate enough to have. A big "Thank You" to all our armed forces! If you wish to tell your story or experience with the armed services, or want to share stories about your years with Sears, please email [email protected] or direct letters to the address shown below. Sears Holdings Corporation Alumni Newsletter 3333 Beverly Road B6-377A Hoffman Estates, IL 60179 We would especially appreciate stories from those who served in World War II but welcome all military stories. We will include as many articles as we can in subsequent editions of the newsletter. Sears stores offered Johnny Carson suits and sport coats on a limited basis in January 1984. It was the first time the line was available through a national retailer.


At Sears, we know we have to earn the right to be on your lawn. That's why, on March 20, we launched a bold, aggressive and confident Lawn & Garden campaign called Turf Wars. We are taking the fight straight to the doors of our competitors and bringing consumers the innovation, services and value they deserve. We believe that Sears' suite of products, and our exclusive innovations, services, prices and associates give us a tactical advantage over The Home Depot and Lowe's.

Remember When?

So far, Turf Wars has produced strong results for Sears and Craftsman. Here are some results of the campaign: · During Q1 2011, Craftsman and Sears Lawn & Garden gained market share · Sears mower and tractor share is the highest it has been since 2003 · Brand equity metrics increased in Sears Lawn & Garden To see all of the ways we beat The Home Depot and Lowe's, go to


Save the Date

Kmart Annual Family & Friends Event All Day Sunday, Nov. 6. Use your associate discount card to get an additional 10 percent off. Saturday, Nov. 5, all day in these locations only: Utah, Idaho and these N.J. stores: Westwood, Elmwood Park, Closter, Paramus and Lodi.

Sears And Kmart Energize Apparel Offerings with New Collaborations

the social networking site Twitter, countless endorsement deals, and worldwide popularity, the Kardashian sisters remain three of the most visible faces in today's media. Adding to the excitement of the new line, famed American portrait photographer, Annie Leibovitz, shot the Kardashian's soon-to-be launched fall advertising campaign. The Kardashian Kollection will be available online and in stores starting September 2011. Sofia by Sofia Vergara Continuing with the celebrity lines, Kmart announced an agreement with Emmynominated actress Sofia Vergara, best known for her role as Gloria on the hit ABC sitcom, "Modern Family." Sofia by Sofia Vergara will include sportswear, dresses, handbags, jewelry, footwear and home goods targeted to young, fashion-conscious women, as well as the multi-cultural market. Sofia Vergara expressed her excitement for teaming with Kmart. "I wanted to work with a national retailer that would truly value a collection that provides both fashion and quality at a price women could afford," Vergara said. She was recently named one of the most powerful Hispanic women in the entertainment industry by The Hollywood Reporter and Billboard, and can be seen in several of 2011's highly anticipated films, including Columbia Picture's "The Smurfs" and "New Year's Eve" from Warner Bros. Pictures. So whether you are a lifelong customer coming in to purchase clothes from our always- stylish, traditional brands, or looking to buy the trendiest attire for that special someone in your life, Sears and Kmart are the go-to stores for all your apparel needs.

In the last edition of the Alumni Newsletter, John Goodman, executive vice president of Home and Apparel, discussed his number one goal: to build a strong apparel business for both Kmart and Sears. As a result of the expansion to the west coast, via the San Francisco apparel office, earlier this year we proudly announced collaborations with some of the most well-known figures in today's pop culture. These ventures will allow Sears and Kmart to attract a variety of new customers, in addition to maintaining a focus on their traditional customers. Kardashian Kollection Sears announced an agreement with Kourtney and Kim Kardashian, and Khloe Odom-Kardashian, along with Jupi Corporation, to be the exclusive retailer for the Kardashian Kollection, a fashion line for contemporary women that includes apparel, intimates, accessories and footwear. Kourtney Kardashian, the eldest of the three sisters, summed up the family's excitement to work with our Sears apparel team: "We were thrilled when we found out Sears was such a huge fan of the Kardashian Kollection. To be able to offer the line to everyone and to have such a great partner as Sears is truly phenomenal!" The family's reality TV show, "Keeping up with the Kardashians," is one of the highest rated television programs on the E! Entertainment Television network, with an average of 3.454 million viewers during its fifth season. Combine that with the over 15 million collective followers on

Sears Shop Your Way Rewards Members Only Event From 6 to 9 p.m. on Saturday, Sept. 10 Or 12:01 a.m. till 11:59 p.m., CST, Sept. 11 Online at All members get an extra five to 20 percent off all regular, sales, and clearance prices. Not already a Shop Your Way Rewards Member? You can sign up for free during the event!


Alumni Mailbag

1920 Sears Mail Order Workers

Lou Ellen Hansen, Denise Timm, Betty McLauchlan, Linda Rammacher and roughly 30 other former Sears associates meet for breakfast four times a year. They even had an article printed in the Courier-News. Look at the article titled "A family called Sears, Roebuck" at In 1945, Loren Broadbent went to work for Sears. She worked for 36 years in the warehouse (8708) in Vernon, Calif., and retired in 1982. She still lives in the home she bought in 1950. The one thing that stands out in Martha Crofcheck's mind from her 21 years of service at Kmart Headquarters, the food! To this day Martha still

gets hungry for the cuisine choices in the cafeteria. She also had the opportunity to meet many celebrities at headquarters, including Cary Grant, Farrah Fawcett, Michael Jordan, Cindy Crawford, and Isaiah Thomas. She even got to hear Billy Ray Cyrus perform "Achey, Breaky, Heart!" Phyllis Zahn was a Sears employee at the Great Lakes Mall, in Mentor, Ohio, for 20 years. She retired in December 2001. Phyllis still has a freezer that was given to her in September of 1963. It sits right next to the dryer so you can only imagine how many clothes have been folded on it!

Please visit for the latest company news, special offers, discount information and contacts for your benefits. The site also contains many resources to help you get connected and stay connected to Sears Holdings, including your fellow retirees and alumni.

Want to Stay Connected to Fellow Sears and Kmart Alumni/Retirees? Then Join an Alumni/Retiree Club!

Are you looking to increase the membership of your local Kmart or Sears retiree/alumni clubs? Or maybe you're looking to join a club. Please send your club name as well as the name of your club's contact person, phone number and email address to [email protected] Club information will be published in the next issue of Alumni News and is posted on to assist with engagement of your fellow alumni. When reaching out to join a club, please write `Kmart retiree/alumni club' or `Sears retiree/ alumni club' in the subject line of your email so you can be easily identified by the club contacts. Thanks to the following clubs for responding! In. U. Hung Retiree Club, Thomas Hong, [email protected], 818-346-8821 Retiree Breakfast Club, Steubenville, Ohio, Carl Streley, [email protected], 740-937-2739 Sears 1590 Alumni of Saginaw, Mich., Bonnie Dibble, [email protected] Sears Retirees of Binghamton and Johnson City, N.Y. James Griffin, [email protected] or Beverly Griffin, [email protected], 607-797-9265


Sears Holdings Alumni Newsletter 3333 Beverly Road B6-377A Hoffman Estates, IL 60179




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