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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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|-------------------------------- | ---------------------------------------------------------------------------- | -------------------------------------------- | ----- | ------- | ----- | - | ---------- | ----- | ----- | - | ----- | ----- | ----- | ---- | ----- | ----- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                                 |                                                                              |                                              |       | Nine    |       |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |       |      
|                                 |                                                                              |                                              |       | Months  |       |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |       |      
|                                 |                                                                              |                                              |       | Ended   |       |   | Year Ended |      
|                                 |                                                                              |                                              |       | 9/28/02 |       |   |            |      
|(millions, except ratios)        |                                                                              | (unaudited)                                  |       |         | 2001  |   |            | 2000  |       |   | 1999  |       |       | 1998 |       |       | 1997  |  
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|Fixed Charges                    |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Interest and amortization of debt discount
and expense on all indebtedness   |                                              | $     | 866     |       |   | $          | 1,415 |       |   | $     | 1,248 |       |      | $     | 1,268 |       |   | $     | 1,423 |       |   | $     | 1,409 |      
|                                 | Add interest element implicit in rentals                                     |                                              |       | 116     |       |   |            | 161   |       |   |       | 136   |       |      |       | 133   |       |   |       | 144   |       |   |       | 147   |      
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              | 982   |         |       |   | 1,576      |       |       |   | 1,384 |       |       |      | 1,401 |       |       |   | 1,567 |       |       |   | 1,556 |      
|Interest capitalized             |                                                                              |                                              | 3     |         |       |   | 11         |       |       |   | 4     |       |       |      | 5     |       |       |   | 5     |       |       |   | 3     |      
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|Total fixed charges              |                                                                              | $                                            | 985   |         |       | $ | 1,587      |       |       | $ | 1,388 |       |       | $    | 1,406 |       |       | $ | 1,572 |       |       | $ | 1,559 |      
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|Income                           |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Income (loss) before income taxes,
minority interest, and extraordinary loss |                                              | $     | 1,095   |       |   | $          | 1,223 |       |   | $     | 2,223 |       |      | $     | 2,419 |       |   | $     | 1,883 |       |   | $     | 2,138 |      
|                                 | Deduct undistributed net income (loss)
of unconsolidated companies           |                                              |       | 17      |       |   |            | 12    |       |   |       | 17    |       |      |       | (5    | )     |   |       | 11    |       |   |       | 13    |      
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              |                                              | 1,078 |         |       |   | 1,211      |       |       |   | 2,206 |       |       |      | 2,424 |       |       |   | 1,872 |       |       |   | 2,125 |      
|Add                              |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |   |       |       |       |   |       |      
|                                 | Fixed charges (excluding interest capitalized)                               |                                              |       | 982     |       |   |            | 1,576 |       |   |       | 1,384 |       |      |       | 1,401 |       |   |       | 1,567 |       |   |       | 1,556 |      
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|                                 |                                                                              | Income before fixed charges and
income taxes |       | $       | 2,060 |   |            | $     | 2,787 |   |       | $     | 3,590 |      |       | $     | 3,825 |   |       | $     | 3,439 |   |       | $     | 3,681 | 
|                                 |                                                                              |                                              |       |         |       |   |            |       |       |   |       |       |       |      |       |       |       |  
|Ratio of income to fixed charges |                                                                              |                                              | 2.09  |         |       |   | 1.76       |       |       |   | 2.59  |       |       |      | 2.72  |       |       |   | 2.19  |       |       |   | 2.36  |      
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