Kmart-Sears merger

On Wednesday, it was announced that Sears and Kmart stores would merge to become Sears Holdings Corp. This was a surprise deal and it will create the third largest retailer in the country, after Wal-Mart and Home Depot. Both stores will still exist under their current names.

This seems like a positive move for both companies. Sears, who was the #1 retailer until Wal-Mart took over in 1991, has not had very strong sales the last couple years. Only 2 years ago, Kmart filed for bankruptcy, closed 600 stores, and laid off nearly 60,000 workers. Currently, its stocks are doing well and it is reporting 4th quarter profits. Hopefully, with this new merger, both stores will continue to see growth. Together, it is estimated they will have $55 billion in annual revenues.