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EXHIBIT 12

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

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|-------------------------------- | ------------------------------------------------------------------------------------------------------ | ----------- | ----- | ---------- |  | ---- | ----- | ----- |  | ---- | ----- | ----- |  | - | ----- | ----- | - | - | ----- | ----- |  | - | ----- | ----- | 
|                                 |                                                                                                        | Six         |       | Year Ended
|                                 |                                                                                                        | Months      |       |           
|                                 |                                                                                                        | Ended       |       |            |  |      |       |       |  |      |       |      
|                                 |                                                                                                        | 6/29/02     |       |            |  |      |       |       |  |      |       |      
|(millions, except ratios)        |                                                                                                        | (unaudited) |       | 2001       |  | 2000 |       | 1999  |  | 1998 |       | 1997 
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |      
|                                 |                                                                                                        | (Restated)  |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |  
|Fixed Charges                    |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
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|                                 | Interest and amortization of debt discount
and expense on all indebtedness                             |             | $     | 568        |  |      | $     | 1,415 |  |      | $     | 1,248 |  |   | $     | 1,268 |   |   | $     | 1,423 |  |   | $     | 1,409 | 
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|                                 | Add interest element implicit in rentals                                                               |             |       | 80         |  |      |       | 161   |  |      |       | 136   |  |   |       | 133   |   |   |       | 144   |  |   |       | 147   | 
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|                                 |                                                                                                        |             | 648   |            |  |      | 1,576 |       |  |      | 1,384 |       |  |   | 1,401 |       |   |   | 1,567 |       |  |   | 1,556 |      
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|Interest capitalized             |                                                                                                        |             | 2     |            |  |      | 11    |       |  |      | 4     |       |  |   | 5     |       |   |   | 5     |       |  |   | 3     |      
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|Total fixed charges              |                                                                                                        | $           | 650   |            |  | $    | 1,587 |       |  | $    | 1,388 |       |  | $ | 1,406 |       |   | $ | 1,572 |       |  | $ | 1,559 |      
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|Income                           |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
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|                                 | Income before income taxes,
minority interest, and cumulative effect
of change in accounting principle |             | $     | 810        |  |      | $     | 1,223 |  |      | $     | 2,223 |  |   | $     | 2,419 |   |   | $     | 1,883 |  |   | $     | 2,138 | 
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|                                 | Deduct undistributed net income (loss)
of unconsolidated companies                                     |             |       | 7          |  |      |       | 12    |  |      |       | 17    |  |   |       | (5    | ) |   |       | 11    |  |   |       | 13    | 
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|                                 |                                                                                                        |             | 803   |            |  |      | 1,211 |       |  |      | 2,206 |       |  |   | 2,424 |       |   |   | 1,872 |       |  |   | 2,125 |      
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|Add                              |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
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|                                 | Fixed charges (excluding interest
capitalized)                                                         |             |       | 648        |  |      |       | 1,576 |  |      |       | 1,384 |  |   |       | 1,401 |   |   |       | 1,567 |  |   |       | 1,556 | 
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|                                 |                                                                                                        | $           | 1,451 |            |  | $    | 2,787 |       |  | $    | 3,590 |       |  | $ | 3,825 |       |   | $ | 3,439 |       |  | $ | 3,681 |      
|                                 |                                                                                                        |             |       |            |  |      |       |       |  |      |       |       |  |   |       |       |   |   |       |       |  |   |       |      
|Ratio of income to fixed charges |                                                                                                        |             | 2.23  |            |  |      | 1.76  |       |  |      | 2.59  |       |  |   | 2.72  |       |   |   | 2.19  |       |  |   | 2.36  |      
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