Sears Hometown Store Overview
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Sears Authorized Retail Hometown Stores
description
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 [email protected]
Transcript of Sears Hometown Store Overview
Sears Authorized RetailHometown Stores
Sears Authorized RetailHometown Stores
MissionMission
To Be The Premier Retailer of America’s Best Hardlines Brands
in Your Hometown
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Sears Hometown Store Coverage
1,000 Plus Hometown Stores Open
Hometown Stores Strategic PrioritiesHometown Stores Strategic Priorities
Focus on Sears Core Hardlines Retail Businesses– Home Appliances– Home Electronics– Lawn and Garden– Tools– Fitness, Exercise and more
Create a Customer Focused Place to Shop– Merchandise Selection– Competitive Pricing– Visual Presentation
High Performance Partnership – Local-Ownership that is Closer to the Customer– Premier Customer Service
Win for Owner, Customer and Sears
Focus on Sears Core Hardlines Retail Businesses– Home Appliances– Home Electronics– Lawn and Garden– Tools– Fitness, Exercise and more
Create a Customer Focused Place to Shop– Merchandise Selection– Competitive Pricing– Visual Presentation
High Performance Partnership – Local-Ownership that is Closer to the Customer– Premier Customer Service
Win for Owner, Customer and Sears
Sears AdvantagesSears Advantages
Sears Strong Financial Position– 2.5 Billion Cash – available on hand Cash – 2.5 Billion Line of Credit – not used
Ability to Leverage Sears Strengths– World-Class Private "Brand" Names
Kenmore, Craftsman and DieHard
– National "Brand" Names GE, Whirlpool, Maytag, Frigidaire, Amana, Husqvarna, Sony
Sears Strong Financial Position– 2.5 Billion Cash – available on hand Cash – 2.5 Billion Line of Credit – not used
Ability to Leverage Sears Strengths– World-Class Private "Brand" Names
Kenmore, Craftsman and DieHard
– National "Brand" Names GE, Whirlpool, Maytag, Frigidaire, Amana, Husqvarna, Sony
Sears AdvantagesSears Advantages
Expanding Hometown Stores Off Shore– Opened Hometown Store in Guam – November 2010– 5 other off shore locations
Trinidad… by year end 2011 Bermuda… July open planned Costa Rica… new construction, open November Dominican Republic and Brazil in discussions
Expanding Hometown Stores Off Shore– Opened Hometown Store in Guam – November 2010– 5 other off shore locations
Trinidad… by year end 2011 Bermuda… July open planned Costa Rica… new construction, open November Dominican Republic and Brazil in discussions
Sears AdvantagesSears Advantages
Sears is the #1 credit provider among retailers, serving more than 60 million households– Sears Card, SearsCharge Plus, Sears Gold Mastercard,
Commercial One, Discover, MasterCard, VISA and American Express
Nationwide Service Organization– In-Home and Shop Service– Product Repair for all Major Brands
Sears is the #1 credit provider among retailers, serving more than 60 million households– Sears Card, SearsCharge Plus, Sears Gold Mastercard,
Commercial One, Discover, MasterCard, VISA and American Express
Nationwide Service Organization– In-Home and Shop Service– Product Repair for all Major Brands
Sears AdvantagesSears Advantages
Exciting Advertising Program Supporting Your Store– Local Print Advertising– National Ad Campaigns (print and electronic)
On-Going Training– Initial Hands-On Training Approximately 60-70 Hours– Field Training Team– Professional Sales Training By District Sales Manager– Annual Hometown Celebration – product Expo– Web Based -Learning – In-Store Product Training conducted by Vendor Representatives – Hometown Stores Publication -Sales Today
Exciting Advertising Program Supporting Your Store– Local Print Advertising– National Ad Campaigns (print and electronic)
On-Going Training– Initial Hands-On Training Approximately 60-70 Hours– Field Training Team– Professional Sales Training By District Sales Manager– Annual Hometown Celebration – product Expo– Web Based -Learning – In-Store Product Training conducted by Vendor Representatives – Hometown Stores Publication -Sales Today
Sears AdvantagesSears Advantages
Price Match Plus – We will match any competitors price, + give your customer 10% of
the difference = Your Competitive Advantage
Satisfaction Guaranteed – Customers Think Value, Quality, Trust... Customers Think Sears!– Builds a Lifetime Relationship with the Customer
Hometown Representative Council – (Established in 1993)– Members are Elected by their Peers and Serve Voluntarily – Vehicle for Open Two-Way Communication– Substantial Contribution towards Continuous Business Improvement
Price Match Plus – We will match any competitors price, + give your customer 10% of
the difference = Your Competitive Advantage
Satisfaction Guaranteed – Customers Think Value, Quality, Trust... Customers Think Sears!– Builds a Lifetime Relationship with the Customer
Hometown Representative Council – (Established in 1993)– Members are Elected by their Peers and Serve Voluntarily – Vehicle for Open Two-Way Communication– Substantial Contribution towards Continuous Business Improvement
Sears Support ResourcesSears Support Resources
Field Development Team– Regional Market Development Managers– Facility Development Specialists
Field Sales Management Team– Region and District Sales Management– Business Process Consultant Team (Operational Training)
Hometown Support Team (800 number)
Home Office Team
Field Development Team– Regional Market Development Managers– Facility Development Specialists
Field Sales Management Team– Region and District Sales Management– Business Process Consultant Team (Operational Training)
Hometown Support Team (800 number)
Home Office Team
Sears Internet ToolsSears Internet Tools
“Big Store” Ability in a Small Store Presentation– Access to Complete Merchandise Assortment
– Merchandise Lines Not Carried in Hometown Stores
Shop the Competition
Dealer Net – private Hometown Store site– Product Assortments
– Merchandise Layouts
Microsoft Outlook email System
“Big Store” Ability in a Small Store Presentation– Access to Complete Merchandise Assortment
– Merchandise Lines Not Carried in Hometown Stores
Shop the Competition
Dealer Net – private Hometown Store site– Product Assortments
– Merchandise Layouts
Microsoft Outlook email System
Sears Market ShareSource: TRAQLINE
Sears Market ShareSource: TRAQLINE
Kenmore/Craftsman Market Share Sears Total Market Share
WashersDryersFreezersRefrigeratorsDishwashersCookingMicrowavesVacuumsMowersTractors
24.024.928.124.223.820.7 14.6
7.926.429.9
% 34.935.534.534.434.730.423.612.331.131.5
%
Treadmills 26.9 38.6
Back-Office SystemBack-Office System
Same System used in Sears Mall Stores Tracks Daily and Monthly Sales Transactions
– Cash and Credit
Report Generation– Commission Report - By Associate– Credit Transactions - By Customer– Customer Orders and Deliveries
Sign Writer Prints Merchandise Signs Retains Customer Information
Same System used in Sears Mall Stores Tracks Daily and Monthly Sales Transactions
– Cash and Credit
Report Generation– Commission Report - By Associate– Credit Transactions - By Customer– Customer Orders and Deliveries
Sign Writer Prints Merchandise Signs Retains Customer Information
Point-Of-Sale System
Point-Of-Sale System
Credit Transaction Processing– Ability to Process Rapid Credit Applications
Merchandise Reservation System– Determines Warehouse Availability and Delivery Dates on
Customer Ordered Merchandise
Inventory Maintenance And Control– Automatic Replenishment in RIM– Create Service Repair Orders
Price Look-Up Promotional Rebates
Credit Transaction Processing– Ability to Process Rapid Credit Applications
Merchandise Reservation System– Determines Warehouse Availability and Delivery Dates on
Customer Ordered Merchandise
Inventory Maintenance And Control– Automatic Replenishment in RIM– Create Service Repair Orders
Price Look-Up Promotional Rebates
Sears Authorized RetailHometown Stores
Sears Authorized RetailHometown Stores
Compensation ProgramCompensation Program
CommissionCommission A Variable Rate Commission is paid as Specified in the Hometown
Agreement
The Commission Structure Rewards Total Sales Performance based on the Hometowns "Balance of Sale" (BOS)
A Variable Rate Commission is paid as Specified in the Hometown Agreement
The Commission Structure Rewards Total Sales Performance based on the Hometowns "Balance of Sale" (BOS)
Good 3%
Better 7%
Best 10%
Premium 15.5%
Top-of-Line 19.8%
LaundryAutomatic Washers
LaundryAutomatic Washers
Brand Price
Commission
Percent
Commission Payout
Kenmore $229.99 3% $6.89
Kenmore $369.99 7% $25.90
Kenmore $469.99 10% $46.99
Kenmore $659.99 15.5% $102.30
Kenmore 1499.99 19.80% $297.00
Brand Price
Commission
Percent
Commission Payout
Kenmore $229.99 3% $6.89
Kenmore $369.99 7% $25.90
Kenmore $469.99 10% $46.99
Kenmore $659.99 15.5% $102.30
Kenmore 1499.99 19.80% $297.00
Commission (cont.)
Commission (cont.)
Commission Percentage is Applicable to Regular and Promotional Priced Merchandise
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
Commission Percentage is Applicable to Regular and Promotional Priced Merchandise
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
National WeightedAverage Commission
9.25% per contract
10.0% YTD
Additional Income SourcesAdditional Income Sources
Protection Agreements Delivery / Installation Income Business Allowance Parts Program Take the Lead Program SearsHometown.com Licensed Business
Protection Agreements Delivery / Installation Income Business Allowance Parts Program Take the Lead Program SearsHometown.com Licensed Business
Hometown Incentive Bonus Program
Hometown Incentive Bonus Program
Monthly Bonus New Market Incentive First 5 Years of Net Sales
Monthly Bonus New Market Incentive First 5 Years of Net Sales
Low Initial Start-Up Capital
No Upfront Fees or Royalties
No Inventory Expense
No Transportation Cost
No Advertising Expense *
No Interior or Exterior Signing Expense*Many owners do additional advertising on their own
(We supply ad slicks)
Low Initial Start-Up Capital
No Upfront Fees or Royalties
No Inventory Expense
No Transportation Cost
No Advertising Expense *
No Interior or Exterior Signing Expense*Many owners do additional advertising on their own
(We supply ad slicks)
Why The Sears Authorized Retail Hometown ProgramStands Above The Rest...
Impact On Cost
Typical Capital Investment Requirements
Typical Capital Investment Requirements
Owner ExpenseInterior FixturesBuilding (Purchase/Lease)Insurance/Telephone/UtilitiesProfessional Accounting & Legal AdviceMaterial Handling Equipment and Delivery TruckPoint-of-Sale Equipment, Hometownnet PCSupplies (Office/Warehouse)Employee Wages/Taxes/Benefits Reserves for Working Capital (3-6 months)
Start up cost will vary by store
Hometown Income & Expense Estimate Worksheets
Proposed Market: Anytown USA Proposed New Site Selling Square Footage:
THE HISTORICAL GROSS SALES PER HOUSEHOLD RANGE IS BASED ON EXISTING DEALER STORE PERFORMANCE IN SIMILAR SIZE
MARKETS, WITH A SIMILAR DEMOGRAPHIC MIX, AND SELLING SQUARE FOOTAGE AS THIS PROPOSED SITE.
102$ LOWHistorical Net Sales per HH Range: 128$ AVG
158$ HIGH
Number of Households in Poly Mile Radius of Proposed New Site:
New Owner's Estimated Annual Net Sales: (A x B)
New Owner's Estimated Annual Commission Rate: 9.9% 9.9% 9.9%(National Weighted Average Commission Rate 9.9%)
New Owner's Annual Commission on Sales: (C x D) -$ -$ -$
DEALER ESTIMATED ANNUAL GROSS INCOME:
Commission on Sales (E) + -$ + -$ + -$ Business Allowance + + +Protection Agreement Commissions (13,20%) + + +Incentive Bonuses + + +Delivery / Installation + + +Misc (estimated at .25%) + + +New Market Incentive + + +Estimated Annual GROSS Income: = -$ = -$ = -$
DEALER ESTIMATED ANNUAL EXPENSES:
Third Party Credit Charge + + +
Occupancy Cost (Rent, taxes, pro-rated expenses) + + +
Insurance (Autos, Property) + + +
Employee Wages & Taxes + + +
Income Taxes (Federal & State) + + +
Professional Fees (Accounting, Legal, etc.) + + +
Local Advertising (Radio, Phone Book, ect.) + + +
Telephone + + +
Cable + + +
Utilities (Fuel, Water, Electric, Garbage) + + +
Loan Payments & Interest + + +
Supplies + + +
Travel / Training (Workshops, DealerFest…) + + +
Delivery Expense / Installation + + +
Fixture Re-investment Expense + + +
Miscellaneous (Dues, Postage, Maintainance) + + +
DEALER ESTIMATED ANNUAL EXPENSES: = -$ = -$ = -$
DEALER ESTIMATED REVENUE LESS EXPENSES: -$ -$ -$
PLEASE READ CAREFULLY
Acknowledged and Understood Date:
Dealer Income Estimate Worksheet
A
B
C
D
E
(1)
(2)
(3)
(4)
(6)
(5)
(7)
(8)
THIS WORKSHEET IS INTENDED TO ASSIST YOU IN PERFORMING YOUR OWN INVESTIGATION TO DETERMINEWHETHER TO ENTER INTO A DEALER AGREEMENT AND THE NUMBERS INSERTED INTO THE BLANKS HAVE BEENINDEPENDENTLY DETERMINED BY YOU. SEARS PROVIDES YOU WITH THIS WORKSHEET IN ORDER TO GIVE YOUMAJOR CATEGORIES OF INCOME AND EXPENSES NECESSARY TO ESTIMATE THIS POTENTIAL BUSINESS. THEINFORMATION WE PROVIDED AS HISTORICAL GROSS SALES PER HOUSEHOLD IS NOT TO BE CONSTRUED AS AREPRESENTATION OR SUGGESTION THAT THESE SALES PER HOUSEHOLD ACTUALLY WILL BE ACHIEVED BY ASPECIFIC DEALER. YOUR ACTUAL FINANCIAL RESULTS ARE LIKELY TO DIFFER FROM THE INFORMATION OUTLINED INTHIS WORKSHEET. ACTUAL RESULTS VARY FROM UNIT TO UNIT AND SEARS CAN NOT ESTIMATE THE RESULTS OFANY PARTICULAR DEALERSHIP. THE FOREGOING NUMBERS PROVIDE ESTIMATES ON A PRE-TAX BASIS, AND DO NOTACCOUNT FOR ANY EXPENSES OF DOING BUSINESS. A DEALER STORE INVOLVES BUSINESS RISKS WHICH YOUASSUME. SEARS DOES NOT REPRESENT THAT ANY DEALER WILL HAVE A PROFITABLE OPERATION. YOU ARESTRONGLY ADVISED TO SEEK INDEPENDENT LEGAL AND FINANCIAL ADVICE BEFORE YOU SIGN ANY DEALERAGREEMENT.
Hard Copy Signed & Dated
Weekly Market Action Plan & Update Tracking WorksheetWeekly Market Action Plan & Update Tracking Worksheet
Complete Due-Diligence of Market Emailed Completed Worksheet Emailed Completed 5 Year Proforma Candidate Background Check Measurements of Building Store Form Completed Photos of Building/Artist Rendering Preliminary Floor Plan Completed Copy of Lease & Negotiations Completed Business Plan Completed Marketing Plan Completed Store Hours Worksheet Mock Schedule Second Interview with DSM Candidate Authorization Letter (CAN) New Market Incentive Completed Target Market Incentive Completed Miscellaneous – Specify Sears Corporate Market Review Board
Complete Due-Diligence of Market Emailed Completed Worksheet Emailed Completed 5 Year Proforma Candidate Background Check Measurements of Building Store Form Completed Photos of Building/Artist Rendering Preliminary Floor Plan Completed Copy of Lease & Negotiations Completed Business Plan Completed Marketing Plan Completed Store Hours Worksheet Mock Schedule Second Interview with DSM Candidate Authorization Letter (CAN) New Market Incentive Completed Target Market Incentive Completed Miscellaneous – Specify Sears Corporate Market Review Board
Action Items Plan Start Revised Completion Comments and Next Steps W/Dates Date Date Date Date
EXCEL FORMAT
- Timeline should reflect 3 to 5 day segments to completion
- Send MAP Update via email to me EVERY Wednesday by 9 PM CST
- Keep track of all contacts and record meetings on contact report tab
- Plan Date = Planned Completion Date
- Start Date = Task Started Date
-- Revised Date = Any Revisions
-- Completion Date = Task Completed
Where Do We Go From Here?Where Do We Go From Here?
Candidates Will Have 1 Week to Complete Their Initial Research on the Market
Sears Will Process Interview / Survey Results and Build Profile on Potential Candidates
Sears Will Conduct a Background Check on the Primary Principals of the Business
Candidate “CAN” Letter Issued
Candidates Will Have 1 Week to Complete Their Initial Research on the Market
Sears Will Process Interview / Survey Results and Build Profile on Potential Candidates
Sears Will Conduct a Background Check on the Primary Principals of the Business
Candidate “CAN” Letter Issued
Sears Authorized RetailHometown Stores
Sears Authorized RetailHometown Stores
What other owners have doneWhat other owners have done
Sears Authorized RetailHometown Stores
Sears Authorized RetailHometown Stores
Welcome to SearsWelcome to Sears
