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|------------------------------------------------------------------------ |  | -------------- |  | ------ |  | ------ |  | ------ |  | ------ | 
|Exhibit 12.                                                             
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|COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES                
|SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES                    
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|                                                                         |  | Year Ended     | 
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|(millions, except ratios)                                                |  | 2001           |  | 2000   |  | 1999   |  | 1998   |  | 1997   | 
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|Fixed Charges                                                            |  |                |  |        |  |        |  |        |  |        | 
|Interest and amortization of debt discount                               |  |                |  |        |  |        |  |        |  |        | 
|and expense on all indebtedness                                          |  | $1,415         |  | $1,248 |  | $1,268 |  | $1,423 |  | $1,409 | 
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|Add interest element implicit in rentals                                 |  | 161            |  | 136    |  | 133    |  | 144    |  | 147    | 
|                                                                         |  | 1,576          |  | 1,384  |  | 1,401  |  | 1,567  |  | 1,556  | 
|Interest capitalized                                                     |  | 11             |  | 4      |  | 5      |  | 5      |  | 3      | 
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|Total fixed charges                                                      |  | $1,587         |  | $1,388 |  | $1,406 |  | $1,572 |  | $1,559 | 
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|Income                                                                   |  |                |  |        |  |        |  |        |  |        | 
|Income (loss) before income taxes,                                       |  |                |  |        |  |        |  |        |  |        | 
|minority interest, and extraordinary loss                                |  | $        1,223 |  | $2,223 |  | $2,419 |  | $1,883 |  | $2,138 | 
|Deduct undistributed net income (loss)
      of unconsolidated companies |  | 12             |  | 17     |  | (5)    |  | 11     |  | 13     | 
|                                                                         |  | 1,211          |  | 2,206  |  | 2,424  |  | 1,872  |  | 2,125  | 
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|Add                                                                      |  |                |  |        |  |        |  |        |  |        | 
|Fixed charges (excluding interest capitalized)                           |  | 1,576          |  | 1,384  |  | 1,401  |  | 1,567  |  | 1,556  | 
|Income before fixed charges and                                          |  |                |  |        |  |        |  |        |  |        | 
|income taxes                                                             |  | $2,787         |  | $3,590 |  | $3,825 |  | $3,439 |  | $3,681 | 
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|Ratio of income to fixed charges                                         |  | 1.76           |  | 2.59   |  | 2.72   |  | 2.19   |  | 2.36   |