SEARS HOLDINGS Shop Your Way Become Part of the Most Amazing Social Shopping Experience on the Planet!

SEARS HOLDINGS Shop Your WayBecome Part of the Most Amazing Social Shopping Experience on the Planet!

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Agenda

• Economic uncertainty…• Ongoing Challenge…the Internet• What SEARS HOLDINGS is doing about it…Shop Your Way• How can your business help and be helped?

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Economic Uncertainty

• The Consumer• Increased taxes, reduced salaries, shift from full-time to part-time and rising

health care costs leaves consumers with less disposable income• Consumer confidence is still down significantly • With less to spend, shoppers are focused on cost, referencing multiple media

sources before making decisions• Retailers

• Retailers are concerned about the future• Which retailers will survive? Which will be part of mergers and acquisitions?

Which will file for bankruptcy or close? • Uncertainty about taxes, health care costs, payroll costs, regulations, etc.

hurting retailers’ ability to plan for the future• They are constantly re-examining their business in order to stay competitive• Declining sales drives budget reductions, and everyone has their eye on print

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Ongoing Challenge…the Internet

• Retailers are being impacted in greater ways each year by the Internet

• Amazon is a threat to every brick and mortar retailer - on trend to surpass

Walmart as the world’s largest retailer by 2017

• Quick shipping (testing same day) and incredibly competitive pricing

• Revolutionizing the way people shop

• Google it is also testing same day shipping, with others to follow

• Show-rooming continues to plague retailers

• Exponential internet growth has made e-commerce front and center with most

retailers, shifting emphasis away from brick and mortar and print

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What is SEARS HOLDINGS doing to meet these challenges?

Transforming themselves through…

Shop Your Way

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What is Shop Your Way?

A member based social shopping system that leverages personalized rewards, a suite of services and a collection of experiences that serve, delight and engage those who join and participate.

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Two Key Tenets of SYW are Rewards and Fun

The way SHC sees it, shopping is supposed to be fun. It’s also something that’s even more fun when done with others.

Yesterday’s trip to the mall has become today’s technology enabled social shopping experience. We connect with our friends and family instantly with a simple click, no matter where we are.

Family and friends can weigh in on the dress we’re about to buy. Tell us which drill is the right one for the job. Or help us make decisions on a new home entertainment system. All within seconds, no matter how far or how near they are.

The Shop Your Way vision is to help enable people to do this more seamlessly, more enjoyably, and more rewardingly than ever before – by creating the most amazing social shopping experience on the planet.

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ShopYourWay is a Critical Component of SHC’s Strategy

“We’re rapidly moving to a member-based business model. Shop Your Way members get access to personalized deals and earn points for purchases that can be redeemed at Sears, Kmart or Lands’ End, online or in stores. The company doesn’t disclose how many Shop Your Way members it has, but spokesman Chris Brathwaite says it’s in the “tens and tens of millions.”

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More of SHC’s Marketing is Addressed to SYW Members

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More ways…

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What’s the value proposition?

Shop Your Way is another outlet for brands to connect with millions of loyal and spending members. Whether you are a national or international brand or a local businesses serving your local community, Shop Your Way is a place where you can communicate your business’s unique benefits and offerings to the online

community of shoppers.

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Developing a Brand Page- IT’S FREE

• If your brand has a social strategy, syw.com is another social outlet to engage potential customers (who happen to be SYW Members).

• Creating your own brand page (at no additional cost) allows you the flexibility to: • Control content • Include your most engaging and relevant offers • Show off your best products and services • Make changes as often as needed.

Adam Levine

Craftsman Audience Rewards

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Sweeps Social Task Options

• Members are required to complete a social task/interaction to enter sweepstakes which allows for data capture.

• Social Task/Interaction ladders up to unique business needs

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Three ways to participate

• Full SYW Participation (Develop exclusive Member offers/benefits)

• Brand develops SYW brand page

• Brand develop exclusive Member deals (i.e.- points based offers)

• Channel asset access

• Partial SYW Participation (Brand participation on SYW)

• Brand develops SYW brand page

• Brand provides prize(s)

• Brand leverages sweeps to guide SYW Members to complete social interactions which meet unique

business needs

• Prize Only Participation (Brand only provides prize, and does not participant on SYW)

• Brand provides prize(s) to SYW as part of our continued working relationship

• Brand is not involved in strategic development of sweeps

• Depending on prize, brand could get co-op exposure

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Shop Your Way and Your business…

How can you help SHC reach their growing Shop Your Way membership?

Focus on the following…

1.) Flawless Execution - we are all held to “six sigma” standards

2.) Affordable Distribution - increasing USPS costs are top of mind

3.) In-home day matters – threat to Saturday created concerns

4.) Opt-in programs are preferred over free

5.) Saturation isn’t affordable, preference is to target priority SYW sub ZIPs

6.) Drive engagement, enhance your value and relevance of your product

7.) Shop Your Way engagement…Sign-up, create a SYW branding page and join in on the fun, rewards and a whole new relationship with SHC!

Thank you!