Kmart and Sears, Roebuck and Co. announced in November 2004 that they signed a definitive merger agreement that will combine Sears and Kmart into a major new retail company named Sears Holdings Corporation. Sears Holdings will be the nation's third largest retailer, with approximately $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores. Both Sears, Roebuck and Kmart have made significant strides in transforming their organizations, and the merger will further accelerate this process for both companies. Sears Holdings will be headquartered in Hoffman Estates, IL, and Kmart will continue to have a significant presence in Troy, MI. The combined business will have a broader retail presence and improved scale through a national footprint of nearly 3,500 retail stores. The combined company will also benefit from improved operational efficiency in areas such as procurement, marketing, information technology and supply chain management. Kmart operates approximately 1,500 general merchandise stores located in the United States, Puerto Rico, the U.S. Virgin Islands and Guam. Kmart operates three store types: Big Kmart, Kmart Super Centers, and traditional Kmart Stores. Kmart operates nearly 1,100 pharmacies.