Wow big merger
I don't think Sears will go the walmart route (big discount store), I believe they will use K-marts infrastructure and excellent relationships it has with dealers to negotiate lower prices and increase margins across the board.
Sears has made so much money off their credit cards it's ridiculous. When I worked there in College, many old time managers told me the only reason Sears was still in business after all the years was because of the Sears Card.
I think this is a good deal for both companies IMHO
DH