##### 



Exhibit 12

COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGESSEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES

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|-------------------------------- | ---------------------------------------------------------------------------- | -------------------------------------------- | ---- | ------- | ---- | - | ---------- | ----- | ----- | - | ----- | ----- | ----- | ---- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                                 |                                                                              |                                              |      | Three   |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |       |      
|                                 |                                                                              |                                              |      | Months  |      |   | Year Ended |      
|                                 |                                                                              |                                              |      | Ended   |      |   |            |      
|                                 |                                                                              |                                              |      | 3/29/03 |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |      
|(millions, except ratios)        |                                                                              | (unaudited)                                  |      |         | 2002 |   |            | 2001  |       |   | 2000  |       |       | 1999 |       |       | 1998  |  
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|Fixed Charges                    |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Interest and amortization of debt discount
and expense on all indebtedness   |                                              | $    | 279     |      |   | $          | 1,143 |       |   | $     | 1,415 |       |      | $     | 1,248 |       |   | $     | 1,268 |       |   | $     | 1,423 |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Add interest element implicit in rentals                                     |                                              |      | 38      |      |   |            | 157   |       |   |       | 161   |       |      |       | 136   |       |   |       | 133   |       |   |       | 144   |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              | 317  |         |      |   | 1,300      |       |       |   | 1,576 |       |       |      | 1,384 |       |       |   | 1,401 |       |       |   | 1,567 |      
|Interest capitalized             |                                                                              |                                              | 0    |         |      |   | 4          |       |       |   | 11    |       |       |      | 4     |       |       |   | 5     |       |       |   | 5     |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|Total fixed charges              |                                                                              | $                                            | 317  |         |      | $ | 1,303      |       |       | $ | 1,587 |       |       | $    | 1,388 |       |       | $ | 1,406 |       |       | $ | 1,572 |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|Income                           |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Income (loss) before income taxes,
minority interest, and extraordinary loss |                                              | $    | 310     |      |   | $          | 2,453 |       |   | $     | 1,223 |       |      | $     | 2,223 |       |   | $     | 2,419 |       |   | $     | 1,883 |      
|                                 | Deduct undistributed net income (loss)
of unconsolidated companies           |                                              |      | 2       |      |   |            | 20    |       |   |       | 12    |       |      |       | 17    |       |   |       | (5    | )     |   |       | 11    |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              | 308  |         |      |   | 2,433      |       |       |   | 1,211 |       |       |      | 2,206 |       |       |   | 2,424 |       |       |   | 1,872 |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|Add                              |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Fixed charges (excluding interest capitalized)                               |                                              |      | 317     |      |   |            | 1,300 |       |   |       | 1,576 |       |      |       | 1,384 |       |   |       | 1,401 |       |   |       | 1,567 |      
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              | Income before fixed charges and
income taxes |      | $       | 625  |   |            | $     | 3,733 |   |       | $     | 2,787 |      |       | $     | 3,590 |   |       | $     | 3,825 |   |       | $     | 3,439 | 
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              |      |         |      |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|Ratio of income to fixed charges |                                                                              |                                              | 1.97 |         |      |   | 2.86       |       |       |   | 1.76  |       |       |      | 2.59  |       |       |   | 2.72  |       |       |   | 2.19  |      
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