Kmart Retail Services 2006 Refresh

Overview

As KRS begins its 3^rd full year, we look forward to developing new relationships, while continuing to support our current vendor partners with outstanding customer service and superior store results. The KRS program, like any new program has opportunities for improvement, but we can ensure you, that in 2006 our Senior Management and Field Management are committed to successful implementation of your projects.

KRS has afforded our merchants and vendors the opportunity to launch new products, promotional programs, refresh planograms, build sales and improve margin with the fastest turn around time in the industry. To date, we have successfully completed over 1500 planogram updates and projects.

As you develop your 2006 merchandising initiatives, consider utilizing KRS. We are available to meet with your team to assist in all of your future planning. KRS is committed to servicing all of your merchandising needs at all Kmart and Sears Grand Stores. Please contact Dave Haluska @ 248-463-7749 or Patty Schattler @ 248-463-5015 to review and discuss your needs.

KRS Vendor Advantages:

ü Knowledgeable store and corporate team

ü Eliminates multi-week rollout scheduled

ü Results and incremental sales are immediate through KRS (quick turn around time)

ü Store compliance is 95% on initial evaluations – Store compliance follow-up via Regional, District and Store Coaches

ü Eliminates travel time, callback fees, or per diem expense

ü Complete ownership of project from start to finish – eliminates miscommunications

ü No additional reporting fees

ü Acquired knowledge and skills are retained at the store.

ü No long term contracts required

ü $20.00 an hour ($10.00 min.) competitive rate

Kmart Retail Services offers - One Time Projects:

ü Are defined projects with a start and end date

ü Unit integrity updates

ü Building endcaps and special displays for promotional events

ü Planogram updates and resets

ü Speed to shelf initiatives

ü Recall products

ü Implementing point of sale signing materials

ü In-Store Demos

Continuity Projects: Are projects that require daily, weekly, or monthly follow-up by our KRS Associate:

ü Replenishment

ü Planogram verifications

ü Unit integrity updates

ü Specific day and time implementation

ü Maintenance of SKU’s or categories

ü Ownership by store associates