Sears Holdings: Finding A Better Way
Paul Campbell
Director, Sustainability/Green Leadership
August 2, 2016
SEARS HOLDINGS CORP.
• 1,624 Retail Stores (900 Kmart, 700 Sears, 24 Specialty)
• 200,000+ employees (Top 25 Largest US Corporations)
• $25 Billion in Revenue
• Over 230 Million SF of occupied space
• Over 135 Million Shop Your Way members – a social shopping
platform that connects all of the ways members shop in store, at
home, online and by phone.
Greensboro, NC
• Tenant: Whole Foods
• Sublease 34,320 SF.
BEFORE
AFTER
Oakbrook, IL
• Tenant: Pottery Barn Kids, PB Teen and West Elm
• Sublease 26,198 SF.
Schaumburg, IL (Woodfield Mall)
• Tenant: Namco Entertainment (Level 257 restaurant/entertainment )
• Sublease 41,960 SF.
The Sears Catalogue…
14
Omni Channel Retail in the News…
15
Integrated Retail – Blurring the Lines
•
ONLINE RESEARCH LEADS
TO IN-STORE SALES
• STORE DISCOVERY &
EXPERIENCES LEAD TO
ONLINE SHOPPING
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SYW: Learning About Our Members
Shop Your Way is about collecting and using data and
analytics to better engage and serve our members through
targeted marketing and merchandising
Identity member needs &
preferences
- what they want
- why they want it
- when they want it
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Member Data
Learn about members
they shop
-- where
how they shop
- brands they like
- products they buy

- how much they spend
Member relationships
− personalization
• emails
• offers
− relevant
• what they want
• when they need it
New Appliance Store Growth: Fort Collins, CO
Sears and the Connected Home
Our Connected Home strategy will engage with customers across multiple touch
points by leveraging our Connected Solutions, Services & Technology.
Connected
Solutions and
Services
Connected
Life
Technology
Platform
Brands
Product
Road Map
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Connected Solutions
Entrance
CONFIDENTIAL | COPYRIGHT 2014, SEARS
BRANDS LLC.
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Connected Solutions
Kitchen
CONFIDENTIAL | COPYRIGHT 2014, SEARS
BRANDS LLC.
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Connected Solutions
Fitness
CONFIDENTIAL | COPYRIGHT 2014, SEARS
BRANDS LLC.
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2015 Sustainability Success
•
2014 SHC Responsibility and Sustainability Report published, August 2015
• Bloomberg Rating: Environ/Social/Governance Disclosure Score increased by 37% YOY
• DOE Workplace Charging Challenge Leadership Award
• Carbon Disclosure Project (CDP) participation: Carbon module response
• SHC Green House Gas footprint baseline established
• SHC Waste Baseline: Identified all sources and vendors/created canned reporting format
• Global Sourcing QA team including environmental questions in vendor assessment
• Global Reporting Initiative (GRI) team training
• 7 consecutive years recognized as EPA ENERGY STAR Retail Partner of the Year
Energy Achievements 2007-2014
 Over the last 8 years we have reduced our energy consumption by
over 1 Billion kWh.
 Actual reduction in spend over the last 8 years, not adjusted for
comparative stores, is $93mm.
 Over the last 8 years, cumulative cost avoidance at average rate per
kWh approaches $853mm.
TOP TEAM ENERGY REDUCTION
To earn this recognition, teams were verified to have reduced
their collective energy “weight” the most, on a percentage
basis, over the course of the year-long competition. Four of
our five teams placed in the top seven overall.
TOP ENERGY REDUCTION BY CATEGORY
To earn this recognition, individual buildings were verified to
have reduced their energy “weight” more than any other building
in their category, on a percentage basis, over the course of the
year-long competition. Recognition was given in any category
that included 10 or more competing buildings of that type.
There were 19 categories total.
In the Retail Store category, we placed….
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
14th
1248
1838
1678
2175
1168
1268
1748
2547
1478
1988
2628
1327
1378
Hayward
Burbank
Carlsbad
Greenville
N Hollywood
Buena Park
Montclair
College Station
San Bruno
El Centro
Eureka
Baytown
Orange
CA
CA
CA
NC
CA
CA
CA
TX
CA
CA
CA
TX
CA
34.6% Reduction
31.90%
29.30%
28.60%
28.50%
27.60%
26.10%
25.90%
24.90%
22.80%
22.60%
21.90%
20.70%
2016 LED Lighting Options
NEW LDR 2x4
Current Fluorescent
Lighting
Sylvania LED Tubes
- 15 watt LED replacement
- Uses existing ballast
- Life expectancy increases from 5 years to 10
years decreasing future maintenance
cost
- Guaranteed for 5 years
Orion LDR Retrofit
- 42 watt fixture
- 2-3 minutes to install
- Clean consistent look
- Guaranteed for 10 years
Energy Recognition
•
•
•
•
•
•
•
ENERGY STAR Partner of the Year – Sustained Excellence – 2016
ENERGY STAR Partner of the Year – Sustained Excellence – 2015
ENERGY STAR Partner of the Year – Sustained Excellence – 2014
ENERGY STAR Partner of the Year – Sustained Excellence – 2013
ENERGY STAR Partner of the Year - Corporate Commitment – 2012
ENERGY STAR Partner of the Year – 2011 (460 total stores earned ENERGY STAR Rating)
ENERGY STAR Leaders Award – Kmart, 2011
o
o
o
EPA National Building Competition –
2015 Battle of the Buildings- 4 teams entered consisting of 22 stores
2014 Battle of the Buildings, 4 of our teams ranked in the Top 15. 6 stores earned 20% or Better Improvement Recognition.
We received a write-up in the 2014 Wrap Up Report on our performance in the competition on behalf of these 4 teams.
2013 Battle of the Buildings, most number of buildings entered by a single organization at 122. 7 of our stores received 20% or
Better Improvement Recognition from the EPA.
2012, 3 stores in top 15, #1 Big Box Retailer, 20 sites with special honors each saving over 20%, all 56 stores enrolled saved
energy. 3,000 buildings nationwide competed.
2011, 25th place (Cape Girardeau, MO) out of 245 buildings.
2010 Inaugural Year, 2nd place (Glen Burnie, MD) out of 14 competitors.
o
o
o
o
Our 2014 Corporate
(Sears Holdings Corp.)
Responsibility &
Sustainability Report shares
our efforts as an
organization continuously
working towards social
and environmental
stewardship
Recycling Efforts
We recycled:
125,348 tons of corrugated cardboard
1,545 tons of mixed plastic
3,145 tons of metal
Product Selection
More than 5.3 million ENERGY
STAR certified products were sold
through Sears and Kmart. This
resulted in more than 600 million
kilowatt-hours of electricity saved
and more than $100 million in
electricity cost savings for our
members.
Responsible Supply Chain
Global Sourcing team initiated a
pilot survey to better understand
the environmental impacts of our
top 20 direct sourced apparel
vendors, representing more than
130 fabric mills, dye houses and
printing houses.
www.blog.searsholdings.com
Energy Savings
We reduced electricity usage by
300 million kWh, an 11
percent savings over the previous
year
Responsible Appliance Disposal
Program
We processed and responsibly
disposed of more than 366,000
refrigerators, freezers, AC units
and dehumidifiers, which has
helped prevent the equivalent of
greenhouse gas emissions from
more than 150,000 cars in one
year.
Paper & Packaging
We reduced the need for an estimated 31 tons of glue through our
redesigned, glue-less shoe box construction
Increased the recycled content in our Canyon River Blues brand hang tags
and labels from 30 percent to 100 Percent
Increased the recycled content in our Outdoor Life brand hang tags and
labels from 30 percent to 80 percent
Redesigned our Sears Universal Care Label to 100 percent recycled
Polyester
Replaced paper signs with digital displays in the Home Appliance section
of more than 300 Sears stores
SHC Climate Pledge

Divert 75% of operational waste from landfill out
of our retail stores and distribution centers through
recycling and reuse programs by 2020.

Reduce electricity consumption and associated
greenhouse gas emissions at comparable retail
locations by 30% by 2020, relative to a 2008
baseline.

Certify 750 retail stores to the ENERGY STAR
Building Certification by 2020. Since 2011, we have
completed certification of 617 locations.
SHC – Waste & Recycling
• SHC Waste Project
– 1st time SHC has taken a holistic view of enterprise waste
– Collaborated with two dozen internal waste stakeholders
and numerous vendors to gather historical data
– Identified risks & opportunities in our waste stream
– Successes
• Established 2015 baseline
• Brought SHC waste/recycling
stakeholders together to agree
upon a 2020 diversion goal
• Creation of SHC Waste Council
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SHC – Waste & Recycling
• SHC Waste Council
– Council members include representatives from multiple
departments including:
• Store Operations
• Logistics Operations
• Legal
• Procurement
• Facilities
• Environmental Sustainability
– Meet Quarterly to discuss
• 2020 Waste Diversion Goal (track
progress)
• Vendor issues
• New legislation
• Areas for alignment across
Business Units
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SHC – Waste & Recycling
• SHC Waste Council Goals
Increase Revenue
•
•
Identify and track commodity
values in waste stream
Leverage economies of scale
across enterprise
Cost Out
•
•
•
Brand Enhancement
•
•
Increase employee engagement,
ownership
Keep SHC brands out of landfill
Increase productivity
Streamline vendor relations
Leverage economies of scale
across enterprise
Risk Mitigation
•
•
•
Stay ahead of legislation
Manage compliance
Employee and customer privacy
protection
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Creation of an Executive
Sustainability Council
Executive level team that works to:
•
Provide high level guidance on industry trends, risks and
opportunities with respect to sustainability and chart appropriate
course for SHC
•
Establish and manage corporate sustainability priorities and or
goals, track progress and drive organizational accountability
•
Provide guidance on sustainability reporting and transparency
•
Provide guidance and resources for industry partnerships and
collaborations
•
Ultimate goal: Driving cost savings, increasing employee
engagement, and enhancing corporate brand and reputation
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F
Sears Holdings: Finding A Better Way
Q&A