Shareholders in the Kmart Holding Corporation received one share in the new company. The company is directed by a board of directors composed of members from the two companies: seven members from Kmart's board, and three from Sears. Preservation of two brands after the merger was intended to allow Sears Holdings to continue focusing on different customer demographics, without alienating either group.The establishment of a shared customer-focused corporate culture between the two companies was estimated to yield improvements in revenue per unit area.At least $300 million a year in cost savings was expected annually, particularly in the supply chain and in administrative overhead.This was estimated to be an expected $200 million a year in revenue synergies. Proprietary brands held by both companies could be made more accessible to their target demographics by leveraging their combined real estate holdings.Earlier in the year, Sears had purchased dozens of current Super Kmart locations the merger permitted the combined company to accelerate that process. Sears had begun investing in new, larger off-mall stores, called Sears Grand.The two companies cited several reasons for combining forces: The company continues to market products under brands held by both companies. Sears Holdings now operates Sears and Kmart stores. The result of the merger was Kmart and parent Kmart Holding Corporation and Sears became subsidiaries of the new Sears Holdings Corporation. With the acquisition, the former HQ of Kmart in Detroit moved to the Sears Headquarters. The merger of Kmart and Sears closed on March 24, 2005, following affirmative shareholder votes of both companies. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands. The new corporation became known as Sears Holdings Corporation, simply known as Sears Holdings. Kmart previously emerged from Chapter 11 bankruptcy protection on May 6, 2003. On November 17, 2004, the management of Kmart Holding Corporation announced its intention to purchase Sears, Roebuck and Co.

Sears outlet