| NPK Redevelopment has been formed as an LLC, | | | | Sears Essentials soon after the merger of the |
| jointly owned by Sears Holdings (80%) in New | | | | two retail companies. Many at first thought that |
| Plan Excel Realty Trust (20%). This move sends a | | | | Sears Essentials would be the new retail brand for |
| powerful signal that the days of the Kmart brand | | | | the company - provided Sears Essentials was |
| may be numbered.When Edward Lampert | | | | successful. Although Sears Holdings has not |
| purchased a majority stake in the then Kmart | | | | reported holiday sales for the untested retail |
| Holding Company, it was widely suspected that | | | | format, some industry analysts feel that the |
| Lampert was more interested in the valuable real | | | | format is falling short of the sales per square foot |
| estate owned by Kmart than actually continuing | | | | required to make the retail format liable.As a |
| the retail side of the business. Although denied by | | | | major landlord for the former Kmart Corporation, |
| Kmart leadership at the time, this move signifies | | | | New Plan Excel Realty was instrumental in |
| that the earlier suspicions were correct.Integity an | | | | redeveloping closed Kmart stores into multi-tenant |
| issue This is the second major occurrence that | | | | retail formats and into health clubs and office |
| brings into question the integrity of Sears Holding | | | | formats prior to the merger with Sears. The |
| Company leadership. When Lampert | | | | game of TrustBall (TM) This development, along |
| masterminded the merger of Sears and Kmart, | | | | with prior experiences with Kmart Corporation |
| Lampert and other senior executives at Kmart | | | | dating back to Kmart's pre-bankrutcy days, |
| assured the people of the State of Michigan and | | | | shows a continued problem at the company with |
| the City of Troy that Kmart would keep a | | | | the integrity of its leadership. This is a major |
| "significant presence" in Southeastern Michigan. It | | | | emphasis of the TrustBall (TM) workshop offered |
| was widely thought, and not denied, that this | | | | by Max Impact. Once trust has come under |
| meant the new Sears Holding Company would | | | | question, the individual organization involved must |
| keep the base of its Kmart discount stores in the | | | | go to the TrustBall (TM) on-deck circle before |
| Troy area. As time passed it became clear that | | | | they can enter into a trusting relationship with |
| this was not the intention.Likewise, the | | | | customers, suppliers, employees, and other |
| Corporation's leadership had assured other | | | | stakeholders. It is in the on-deck circle that a |
| stakeholders that it was committed to making | | | | batter warms up and prepares for the next |
| Kmart a viable retailer. This move, forming a real | | | | at-bat. Once at-bat, the hitter will once again be |
| estate venture, confirms earlier suspicions that | | | | able to establish trust. However without the |
| the lucrative land Kmart sits on is a major part of | | | | proper "warm-up" the batter once again strike |
| the long-term Sears financial plan.According to | | | | out.If you play the game of TrustBall (TM) |
| filings with the Securities and Exchange | | | | correctly, you will be able to move around all the |
| Commission, New Plan Excel Realty operates | | | | bases and score a homerun - perhaps you will |
| hundreds of strip malls throughout the nation. | | | | even win the world series of trust.ConclusionThe |
| Wal-Mart is their largest tenant followed by | | | | leadership of any organization needs to realize |
| Kroger and then Sears Holdings. New Plan Excel | | | | that trust is a corporate asset and needs to be |
| Realty is already working on the redevelopment | | | | treated as an investment. When high trust is |
| of three Kmart stores in Memphis and the | | | | present, customer, employee, investor, and |
| Sears-owned properties closed in September of | | | | supplier loyalty increases to the point that all three |
| 2005.According to Louis Taylor, a real estate | | | | can be retained for a lifetime. However when |
| analyst at Deutsche Banc Securities in New York, | | | | trust is low, productivity and profits are lost and |
| as quoted in Crain's Business, "This could start the | | | | customers seek to do business elsewhere, the |
| process in earnest of unlocking the value of the | | | | best suppliers will no longer deal with you, |
| real estate. If the economics are what Sears | | | | shareholders will sell and drive down stock prices, |
| hopes it will be, I think you'll see Sears broaden it. | | | | and employee turnover - especially among the |
| Instead of three at a time, they can do a | | | | best employees - will increase.Rick Weaver is an |
| hundred and split it up geographically, or have | | | | accomplished business executive with a wealth of |
| three or four different real estate companies | | | | experience in retail, market analysis, supply chain |
| handle pieces of it. If it works with Kmarts, then | | | | enhancement, project management, team building, |
| why not do it with Sears?"The numbers Most | | | | and process improvement. Building on a strong |
| industry analyst have expected that lamp or | | | | retail background, Rick moved to full supply-chain |
| would sell 200 to 300 Sears stores that are falling | | | | involvement, working with hundreds of companies |
| short of required revenue. However according to | | | | to improve sales, processes, and bottom-line |
| a recent report from Morgan Stanley, Sears | | | | results.As Rick's interaction in varied industries |
| properties are worth only about $50 a square | | | | expanded, he became troubled as he increasingly |
| foot. This is due primarily to their location in malls, | | | | noticed that people and companies had untapped |
| which continues to be a lesser desired location for | | | | or unfocused talent.Coupled with Rick's passion for |
| large stores and big boxes. On the other hand | | | | training and development, popular style of |
| Kmart's properties are estimated to be worth an | | | | interactive workshops and seminars, and strong |
| average of $85 a square foot, according to the | | | | desire for continuous improvement, he founded |
| same Morgan Stanley report. Kmart's location or | | | | Max Impact Corporation to be singularly focused |
| more desirable as many are in well-developed | | | | on helping individuals and organizations achieve high |
| areas where land is at a premium and their | | | | performance.Rick is a popular speaker at |
| locations in strip shopping centers are the main | | | | seminars, workshops, and conferences. He has |
| target of big-box retailers. With Kmart already | | | | spoken in 43 states, including Alaska and Hawaii, |
| meeting the zoning requirements, the startup time | | | | and in Canada and Puerto Rico. He is available to |
| to redevelop an existing Kmart into a new retail | | | | speak at groups of all sizes. |
| establishment is shortened.Sears Holdings started | | | | |