For me personally, I don't like it at all. I shop at Sears occasionally, maybe once every month or two. Not exactly my favorite store, but I still drop a few bucks there once in a while. You couldn't pay me to go into a K-Mart; if I want the experience of buying cheap crap with poor customer service, I'll go to a flea market and piss off the sellers before buying. K-Mart's management couldn't run what they've got, so now they take over another business?
I'd say this mediocre plus bottom of the heap, not mediocre plus mediocre. And since it's the bottom of the heap in charge, I can't see it as hope for improving the mediocre...