Wal-Mart may be a powerhouse of epic proportions, but it may soon have competition on the level of size and scale. Kmart Holding Corp. just announced that will acquire Sears, Roebuck & Co. in an $11 billion deal to become the nation's third largest retailer. The deal would put the new company behind only Wal-Mart and Target Stores in terms of annual revenue.

The merger is expected to make both companies' properties more profitable through an enlarged presence and operational efficiencies in areas such as procurement, marketing, information technology and supply chain management, according to the Wall Street Journal.

"The combination will greatly strengthen both the Sears and Kmart franchises by accelerating the Sears off-mall growth strategy and enhancing the brand portfolio of both companies," said Sears Chief Executive Alan Lacy who will become will be vice chairman and chief executive officer of the new company "This will clearly be a win for both companies' customers while significantly enhancing value for all shareholders."

The question for us to unravel is how -- if at all -- the new entity might capitalize on customer intelligence to survive today's retail wars and endure in the ones to come.