According to 2014 10K filings, Sears Holdings service and merchandise categories are divided into five categories and are defined as:
1. Hardlines—consists of home appliances, consumer electronics, lawn & garden, tools & hardware, automotive parts, household goods, toys, housewares and sporting goods;
2. Apparel and Soft Home—women's, men's, kids', footwear, jewelry, accessories and soft home
3. Food and Drug—consists of grocery & household, pharmacy and drugstore; …show more content…
Service—includes repair, installation and automotive service and extended contract revenue;
5. Other—includes revenues earned in connection with our agreements with SHO and Lands' End, as well as credit revenues and licensed business revenues.
The Chart in Appendix 3 depicts revenue by segment. All of the company’s major divisions are experiencing continued decline in revenue. “Hardlines” and “Apparel and Soft Home” divisions that constitute almost 70% of its revenue are losing revenue faster than the remaining segments. In 2014 “Hardlines” and “Apparel and Soft Home” lost almost 20% and 30% respectively when compared to 2013. As these two categories are major contributors to the revenue, they demand more attention and a turnaround