##### 



Exhibit 12

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

|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |       |  | 
|-------------------------------- | ---------------------------------------------------------------------------- | ----------- | ----- | ------ |  | ---------- | ----- | ----- |  | ---- | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | - | - | ----- | ----- |  | 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|                                 |                                                                              |             |       | Nine   |  | Year Ended
|                                 |                                                                              |             |       | Months |  |           
|                                 |                                                                              |             |       | Ended  |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|                                 |                                                                              | 9/27/03     |       |        |  |            |       |       |  |      |       |      
|(millions, except ratios)        |                                                                              | (unaudited) |       | 2002   |  | 2001       |       | 2000  |  | 1999 |       | 1998 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |      
|Fixed Charges                   
|                                 | Interest and amortization of debt discount
and expense on all indebtedness   |             | $     | 847    |  |            | $     | 1,143 |  |      | $     | 1,415 |  |   | $     | 1,248 |  |   | $     | 1,268 |   |   | $     | 1,423 | 
|                                 | Add interest element implicit in rentals                                     |             |       | 111    |  |            |       | 157   |  |      |       | 161   |  |   |       | 136   |  |   |       | 133   |   |   |       | 144   | 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|                                 |                                                                              |             | 958   |        |  |            | 1,300 |       |  |      | 1,576 |       |  |   | 1,384 |       |  |   | 1,401 |       |   |   | 1,567 |      
|Interest capitalized             |                                                                              |             | 1     |        |  |            | 4     |       |  |      | 11    |       |  |   | 4     |       |  |   | 5     |       |   |   | 5     |      
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|Total fixed charges              |                                                                              | $           | 959   |        |  | $          | 1,303 |       |  | $    | 1,587 |       |  | $ | 1,388 |       |  | $ | 1,406 |       |   | $ | 1,572 |      
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|Income                          
|                                 | Income (loss) before income taxes,
minority interest, and extraordinary loss |             | $     | 1,056  |  |            | $     | 2,453 |  |      | $     | 1,223 |  |   | $     | 2,223 |  |   | $     | 2,419 |   |   | $     | 1,883 | 
|                                 | Deduct undistributed net income (loss)
of unconsolidated companies           |             |       | 6      |  |            |       | 20    |  |      |       | 12    |  |   |       | 17    |  |   |       | (5    | ) |   |       | 11    | 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|                                 |                                                                              |             | 1,050 |        |  |            | 2,433 |       |  |      | 1,211 |       |  |   | 2,206 |       |  |   | 2,424 |       |   |   | 1,872 |      
|Add                             
|                                 | Fixed charges (excluding interest capitalized)                               |             |       | 958    |  |            |       | 1,300 |  |      |       | 1,576 |  |   |       | 1,384 |  |   |       | 1,401 |   |   |       | 1,567 | 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|                                 | Income before fixed charges and
income taxes                                 |             | $     | 2,008  |  |            | $     | 3,733 |  |      | $     | 2,787 |  |   | $     | 3,590 |  |   | $     | 3,825 |   |   | $     | 3,439 | 
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |      
|Ratio of income to fixed charges |                                                                              |             | 2.09  |        |  |            | 2.86  |       |  |      | 1.76  |       |  |   | 2.59  |       |  |   | 2.72  |       |   |   | 2.19  |      
|                                 |                                                                              |             |       |        |  |            |       |       |  |      |       |       |  |   |       |       |  |   |       |       |   |   |       |