2004-11-25
I'm Gwen Outen with the VOA Special English Economics Report.
Sears used to call itself "the place where America shops." For
more than a century, Sears department stores have tried to meet the
needs of a changing nation. Now, the company that was once the
nation's biggest seller faces big changes of its own. A smaller
competitor, Kmart, announced plans last week to buy Sears for eleven
thousand million dollars.
Richard Sears and Alvah Roebuck started Sears, Roebuck and
Company in eighteen ninety-three. At first they sold only timepieces
and jewelry. Then they published a general catalog for people to
order goods by mail.
Sears opened its first store in
nineteen twenty-five in Chicago. As the company grew, it opened many
stores in large shopping malls away from high land prices in cities.
Sears also led the way in providing average people with credit
cards.
Kmart opened its first store in nineteen sixty-two. It sold goods
at low prices. That same year, Sam Walton opened his first Wal-Mart.
He used computer technology to organize his business and improve the
flow of goods to stores. He kept prices extremely low. Americans
found a new place to shop.
In two thousand two, Kmart sought protection from its creditors.
Businessman Edward Lampert bought control of the company. He sold
many of the stores. He re-organized the company and reduced its
debt. In two thousand three, Kmart came out of bankruptcy. Since
then, its stock has increased over six times in price.
The purchase of Sears would create the third largest retail group
in the country, behind Wal-Mart and Home Depot. Home Depot sells
tools and home improvement products. The plan is to organize Sears
and Kmart under a larger holding company called Sears Holdings, led
by Mister Lampert.
Some people do not think the Kmart name will continue very long.
Kmart is perhaps best known for a line of home products sold under
the Martha Stewart name. Sears brands include Craftsman tools and
Kenmore appliances like washing machines.
The merger of Sears and Kmart requires approval by shareholders
and federal officials. Nobody knows how much the combination will
help sales. Some experts suggest that the land under the stores may
be worth more than the businesses themselves.
This VOA Special English Economics Report was written by Mario
Ritter. This is Gwen Outen.