What Transformco does

Transformco is a privately held integrated retailer formed in 2019 when ESL Investments acquired Sears Holdings Corporation's assets out of bankruptcy through Transform Holdco LLC. The company operates across five core business segments: Sears Home Services, the nation's largest in-home appliance repair network with 3,600 technicians serving nearly 4 million homes annually across all 50 states plus Puerto Rico; Sears and Kmart retail stores, reduced from over 3,400 locations in 2005 to just 5 today; the Shop Your Way loyalty and co-branded credit card program (Shop Your Way 5321 Visa Credit Card); Transform Brands, owner of Kenmore and licensee of DieHard; and Transformco Properties, which manages a real estate portfolio of approximately 51.4 to 59.8 million square feet. The combined headcount exceeds 10,000, with 7,000+ professionals supporting Sears operations and 3,600 dedicated service technicians. The company is domiciled as Transform SR Holding Management LLC in Illinois, USA.

The company's operations span physical retail (specialty and small-format stores), e-commerce (Sears.com, Kmart.com, Kenmore.com), and a direct-to-home service delivery model through Sears Home Services. Its technology footprint includes a unified payment platform integrated with Stripe across the home service workflow (booking, technician on-site collection, settlement), the Shop Your Way social shopping platform, the Kenmore Smart 2.0 mobile app for connected appliances and ENERGY STAR rebate discovery, and a next-generation co-brand credit card servicing platform (Aress) developed jointly with Fidem Financial and funds managed by Blue Owl Capital. Patents include a set of US utility and design patents referenced as applicable to the Transformco website platform.

Transformco generates revenue through retail product sales, professional service fees from Sears Home Services (appliance repair, kitchen and bath remodeling, windows, garage doors, roofing, and appliance maintenance), interchange and merchant partnership fees from the co-branded credit card and Shop Your Way loyalty program, brand licensing royalties (Kenmore owned, DieHard licensed), and real estate transactions on the property portfolio. Following the contraction of the Sears/Kmart store base, the company has explicitly pivoted toward a services-, brands-, and fintech-led operating model, with Sears Home Services reported as growing and profitable for the first time in many years.

Name

Transformco

Legal name

Transform SR Holding Management LLC

Website

https://transformco.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Transformco is a privately held integrated retailer operating Sears and Kmart stores, Sears Home Services (the nation's largest in-home appliance repair network), the Shop Your Way loyalty and credit card program, and a 50+ million sq ft real estate portfolio.

Ownership category

akta.pro rank

Headquarters

HQ city

Hoffman Estates

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Supply Chain, Operations, Marketing or Sales, Infrastructure, Technology or R&D

Revenue model

1. Retail Store Operations: Sears and Kmart full-line stores, specialty stores and online operations generating revenue through product sales
2. Sears Home Services: Nation's largest appliance repair provider generating revenue through service fees for repair, maintenance, and home improvement services (kitchen/bath remodeling, windows, garage doors, roofing)
3. Shop Your Way Loyalty and Credit Card Program: Loyalty rewards program with co-branded credit card generating revenue through interchange fees and merchant partnerships. The company launched Aress co-brand credit card servicing platform with Blue Owl Capital and Fidem
4. Transform Brands (Kenmore and DieHard): Home of Kenmore brand and licensee of DieHard, generating revenue through brand licensing and product sales
5. Real Estate Portfolio: Transformco Properties manages a real estate portfolio of approximately 51.4 million square feet, generating revenue through property sales and leases

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Transformco is a privately held integrated retailer that operates Sears and Kmart stores, the Sears Home Services nationwide in-home repair and home improvement business, the Shop Your Way social shopping and loyalty platform, the Transform Brands portfolio (owner of Kenmore and licensee of DieHard), and a real estate portfolio managed by Transformco Properties. The company has pivoted away from large-scale retail toward home services, brand licensing, fintech (Aress co-brand credit card platform, Shop Your Way 5321 Visa Credit Card), and monetizing its real estate.

Product overview

Transformco operates as a diversified retail and services company organized into five core business units: (1) Sears Home Services, the nation's largest appliance repair provider offering in-home repair and home improvement services; (2) Shop Your Way, a social shopping loyalty platform with rewards program; (3) Sears and Kmart retail operations including full-line stores, specialty stores, and online operations; (4) Transform Brands, home of Kenmore (owned) and DieHard (licensed); and (5) Transformco Properties, managing a real estate portfolio. The company also launched Aress and the Shop Your Way 5321 Visa Credit Card as part of its fintech initiatives through partnerships with Fidem Financial and Blue Owl Capital. Sears Home Services operates independently from retail stores, serving customers in their homes nationwide and repairing any brand of appliance.

Differentiator

Problem solved

Functional benefit

Brands

• Sears: Full-line retail department stores, specialty stores and online operations
• Kmart
• Shop Your Way
• Kenmore
• DieHard
• Sears Home Services
• Shop Your Way Rewards
• Aress
• Shop Your Way 5321 Visa Credit Card

Products and services

• Sears Home Services Nation's largest appliance repair provider offering in-home repair, home improvement (kitchen/bath remodeling, windows, garage doors, roofing), and appliance maintenance services across all 50 states and Puerto Rico via a network of 3,600 expert technicians. Serves nearly 4 million homes annually and covers 88% of US zip codes.
• Shop Your Way Social shopping and loyalty rewards platform offering members points for purchases at Sears, Kmart, and other retail partners, redeemable for discounts or gift cards.
• Sears Retail Stores Full-line department store operations including specialty stores and online operations, with a go-forward strategy focused on a diversified portfolio of larger premier stores combined with small format stores, online marketplace, and buy online pick up in store.
• Kmart Retail Stores Discount retail chain operating remaining full-line stores, specialty stores, and online operations.
• Kenmore Owned home appliances brand recognized for over 100 years, offering products across small and larger appliance categories including ENERGY STAR certified models, sold through Sears stores, online, and licensed to retailers.
• DieHard Licensed automotive and portable power brand offering batteries and related products, managed under Transform Brands.
• Transformco Properties Real estate portfolio of approximately 51.4 to 59.8 million square feet managed through partnerships with retailers, property owners, and communities to create value through property sales and leases.
• Shop Your Way 5321 Visa Credit Card Co-branded Visa credit card issued in partnership with Fidem Financial offering various reward percentages on different purchase categories, integrated with the Shop Your Way rewards platform for member point accumulation.
• Aress Co-Branded Credit Card Platform Next-generation co-brand credit card origination and servicing platform built as a joint venture between Transformco, Fidem Financial, and Blue Owl Capital using proprietary technologies to deliver modern credit card solutions.

Quantifiable outcome

• Serving nearly 4 million homes annually and 88% of US zip codes
• +2 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature3 records

Partnerships

Five partnerships are on record, tiered core, minor and major.

• StripecoreTechnology or Integration · 30 April 2026Transformco integrated Stripe's payment platform across its home service payment operations—unifying payment collection at booking, providing technicians with mobile payment tools for on-site collection, and integrating scheduling systems end-to-end. The company repositioned fragmented payment operations into a revenue-generating function. Speakers included BJ Naedele, President and Chief Commercial Officer at Transformco.
• Target CorporationminorChannel Partner/ Reseller/ Distributor · 28 January 2026Target acquired a retail property in Round Lake, Illinois from Transformco (former Kmart/Sears asset) as part of Transformco's strategy to create value from its real estate portfolio.
• Fidem FinancialmajorTechnology or Integration · 23 December 2025Strategic partner in launching Aress co-brand credit card servicing platform and the Shop Your Way 5321 Visa Credit Card. Fidem Financial manages credit card receivables and connects institutional capital to consumers, expanding its leadership team with senior hires to scale the platform.
• Rebuilding TogethercoreStrategic or Co-development Partner · 1 November 2019Sears Heroes at Home program partnered with Rebuilding Together for veteran support projects nationwide. The partnership conducts critical repairs and accessibility modifications to veteran facilities, with nearly 30 volunteers participating in projects like the U.S. Vets facility in Washington D.C.
• St. Jude Children's Research HospitalcoreStrategic or Co-development Partner · 1 September 2019Sears and Kmart are national team partners for St. Jude Walk/Run events. Since 2006, Kmart has raised $116 million for St. Jude, and the partnership expanded to include Sears in 2019, raising over $2.9 million at checkout in 2019 alone.

Scale indicators9 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Macy's, Inc. Iconic US department store retailer with a similarly shrinking brick-and-mortar footprint, owned-credential loyalty program (Star Rewards), and an active real estate monetization strategy (Macy's Backstage, etc.). The two companies are direct peers in legacy general-merchandise retail repositioning.
• Kohl's Corporation: Mid-tier department store retailer operating its own branded credit card (Kohl's Card) and customer loyalty program — direct comparison point for Shop Your Way and the Aress co-brand card JV at Transformco. Comparable store-base contraction dynamics.
• JCPenney: Post-bankruptcy (2020) mall-based department store also navigating a smaller-store footprint with reduced retail scale; serves as a comparable for legacy department stores under private-equity / sponsor ownership trying to stabilize a contracting retail core.

Broad incumbents

• The Home Depot, Inc. Largest US home improvement retailer with an extensive in-home installation and repair services arm. Directly competes with Sears Home Services for appliance installation, kitchen/bath remodeling, and HVAC service revenue.
• Lowe's Companies, Inc. Second-largest US home improvement retailer, also offering in-home installation services across appliances, flooring, and home improvement — direct competitor to Sears Home Services in the in-home service market.
• Best Buy Co., Inc. Large-format US retailer focused on consumer electronics and major appliances, including Geek Squad in-home installation and repair services. Shares the appliances-plus-in-home-services positioning with Transformco's Kenmore and Sears Home Services.
• Target Corporation: Active acquirer of Transformco's vacated big-box retail sites (5 Kmart leases in 2021, Round Lake property in 2026) and a major competitor to both Sears and Kmart for value-conscious general merchandise shoppers.

Emerging players

• Wayfair Inc. Pure-play online retailer of home goods, furniture, and decor — competes with sears.com and kmart.com in the home furnishings e-commerce category, and is one of the structural threats Transformco's online marketplace is built to defend against.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/TransformcoHQ
• YouTubeyoutube.com/channel/UCrVNiA2EDuJMMx0f4S-4dSw
• Facebookfacebook.com/TransformcoHQ
• LinkedInlinkedin.com/company/transformco

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Transformco