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Center Background

1994 - center established to replace over 20 geographic HR and payroll centers.

               1. creation resulted in significant headcount and budget reductions (300
                     associates and approximately $7M in annual operating expenses)

               2. Concurrent with this consolidation, payroll operations were moved from
                     Finance to HR

               3. Primary services included centralized associate records, payroll, payroll tax
                     administration, benefits administration and core transaction processing. (IT
                     and HRIS support provided at Hoffman Estates.)

1998 - added call center services

1999 - moved to a single 800 number (1-888-88sears) to handle associate and unit
         service requests

1999 - 2000 - completed the conversion to PeopleSoft and added 88sears.com

2001 - integrated, expanded, and web-enabled an existing, centralized PeopleSoft
         transaction processing center (TPC)

2001 - outsourced benefits administration and payroll tax administration

2002 - added associate relations front-end services and support for eLearning and
         eRecruiting store initiatives.

2003 - integrated all HR information and transactions into one Web site - 88sears

2003 - converting Sears into a total electronic pay (ePay) environment

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