Sears Canada Inc. has made the following updates to its organizational structure to further support the company's existing strategic direction. The company remains fully committed to the re-engineering strategies formulated over the past year under the guidance of Brandon G. Stranzl, who continues to lead the organization as Executive Chairman. As announced on June 8, 2016, the re-engineering of Sears Canada focuses on four primary workstreams: Sears 2.0, which is reinventing Sears Canada's retail store format with a more customer-focused and relevant assortment architecture, designed to increase inventory turnover and enable a more compact in-store layout; Initium Commerce Lab, a technology and software development initiative focused on building new I.T. architecture both to run all of Sears Canada and to facilitate new business ventures, including an updated digital commerce experience and expanded commercial logistics capabilities; Real Estate Development, which will match the Company's real estate portfolio to better suit its needs under the Sears 2.0 designs to operate a profitable store-based retail business; and Cost Structure, which will bring the Company's Selling, General and Administrative expense structure in line with its business.

In her role as President and Chief Merchant, Carrie Kirkman was brought aboard to focus on strategic brand partner development. Several new brands will make their debut in Sears Canada this fall. Ms. Kirkman's role will now transition to an advisory role, with continued focus on strategic brand partner development. Accordingly, following the end of the company's second fiscal quarter, she will transition away from her position with the company and as a Director but will continue to be available in an advisory capacity to further the Company's brand partner development. Becky Penrice, appointed as Executive Vice-President and Chief Operating Officer in April, 2016, continues to drive a culture of innovation, speed, and teamwork. Ms. Penrice oversees all aspects of the business strategy by working with the company's senior leaders to deliver meaningful value companywide. Becky now has primary responsibility for the Sears 2.0 reinvention stores and is working with her head office colleagues, the store teams and other stakeholders to lead the successful execution of this transformation. Stephen Champion has been named Executive Vice-President, Real Estate and Strategic Opportunities. Stephen will have primary responsibility for the execution of the Real Estate workstream.