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