FORM OF RIGHTS CERTIFICATE

Exhibit 4.2

FORM OF

RIGHTS CERTIFICATE

OFFER EXPIRES AT 5:00 P.M., EASTERN TIME, ON [            ], 2012

IN ORDER TO EXERCISE YOUR RIGHTS, YOU MUST COMPLETE BOTH SIDES OF THIS CARD.

As the registered owner of this Subscription Rights Certificate you are the holder of the number of Subscription Rights set forth below. As a holder of Subscription Rights, you are entitled to subscribe for the number of common shares (the “Common Shares”) of Sears Hometown and Outlet Stores, Inc. (the “Company”) pursuant to the Basic Subscription Right and upon the terms and conditions and at the Subscription Price for each Common Share specified in the Prospectus relating thereto. The Subscription Rights represented hereby include the Over-Subscription Privilege for holders of Subscription Rights, as described in the Prospectus. Pursuant to the Over-Subscription Privilege, holders of Subscription Rights who exercise their Basic Subscription Rights in full may also choose to subscribe for a portion of any Common Shares that other holders of Subscription Rights do not purchase through the exercise of their Basic Subscription Rights. In addition, Sears Holdings Corporation (“Sears Holdings”) has the right to withdraw and cancel the Rights Offering (as defined in the Prospectus) if, at any time prior to its expiration, the board of directors of Sears Holdings determines, in its sole discretion, that the Rights Offering is not in the best interest of Sears Holdings or its stockholders, or that market conditions are such that it is not advisable to consummate the Rights Offering. If Sears Holdings cancels the Rights Offering, the subscription agent will return all subscription payments received, without interest or penalty, as soon as practicable.

Registered owners of the common shares of Sears Holdings will receive their basic and over-subscription shares via an uncertificated share credit to their existing accounts. Confirmation statements for basic and over-subscription share subscriptions reflecting uncertificated share credits will be delivered on the [                    ] business day following the Expiration Date and after all over-subscription allocations have been effected.

THE SUBSCRIPTION RIGHT IS TRANSFERABLE

Payment must be in United States dollars, whereby only cashier’s or certified checks drawn upon a United States bank and made payable to Computershare Inc. will be accepted. Please reference your rights card control number on your cashier’s or certified check.

The registered owner of this Subscription Rights Certificate named above, or its assignee, is entitled to the number of Subscription Rights shown below to subscribe for and purchase Common Shares. Sears Holdings will distribute to each holder of its common stock as of the Record Date (as that term is defined in the Prospectus) one Subscription Right for each full common share owned by that stockholder as of the Record Date. Pursuant to the Basic Subscription Right and upon the terms and conditions specified in the Prospectus, each Subscription Right will entitle its holder to purchase from Sears Holdings [                ] of a share of Company common stock. Additionally, and as described in the Prospectus, holders of Subscription Rights who fully exercise all of their basic Subscription Rights, after giving effect to any purchases or sales of Subscription Rights by them prior to such exercise, may also make a request to purchase additional Common Shares, through exercise of the Over-subscription Privilege, although neither Sears Holdings nor the Company can assure you that any over-subscriptions will be filled. To subscribe for additional Common Shares pursuant to the Over-Subscription Privilege, you must pay the Subscription Price for each Common Share you wish to purchase, subject to the terms of the Over-Subscription Privilege as described in the Prospectus.

Holders of Sears Holdings common stock as of the Record Date who participate in the Rights Offering will receive their basic and over-subscription shares via an uncertificated share credit to their existing accounts. Any refund in connection with an over-subscription will be returned, without interest or penalty, as soon as practicable after the expiration of the Rights Offering and after all over-subscription allocations have been effected. This Subscription Rights Certificate may be transferred by duly completing and signing the assignment on the reverse side hereof.

ADDITIONAL INFORMATION

For a more complete description of the terms and conditions of this Rights Offering, please refer to the Prospectus. Additional copies of the Prospectus are available upon request from the information agent, Georgeson Inc., at ###-###-#### (toll-free). You are encouraged to contact Georgeson Inc. if you have any questions concerning this Rights Offering.

[END OF FRONT OF RIGHTS CERTIFICATE]

To subscribe for your basic shares please complete line “A” on the card below. If you are not subscribing for your full Basic Subscription, check box “D” below and we will attempt to sell any remaining unexercised Subscription Rights. To subscribe for any over-subscription shares please complete line “B” below.

Please Note: Pursuant to the Over-Subscription Privilege, only holders of Subscription Rights who exercise their Basic Subscription Rights in full may also choose to subscribe for a portion of any Common Shares that other holders of Subscription Rights do not purchase through the exercise of their Basic Subscription Rights.

Payment of Shares: Full payment for both the basic and over-subscription shares must accompany this subscription. Please reference your rights certificate number on your cashier’s or certified check.

If the aggregate Subscription Price paid by a holder of Subscription Rights is insufficient to purchase the number of Common Shares that the holder indicates are being subscribed for, or if a holder of Subscription Rights does not specify the number of Common Shares to be purchased, then the holder of Subscription Rights will be deemed to have exercised first, the Basic Subscription Right (if not already fully exercised) and second, the Over-Subscription Privilege to purchase Common Shares to the full extent of the payment rendered. If the aggregate Subscription Price paid by a holder of Subscription Rights exceeds the amount necessary to purchase the number of Common Shares for which the holder of Subscription Rights has indicated an intention to subscribe, such excess will be returned to such holder of Subscription Rights, without interest or penalty, as soon as practical following the expiration of the Rights Offering.

FOR A MORE COMPLETE DESCRIPTION OF THE TERMS AND CONDITIONS OF THIS RIGHTS OFFERING, PLEASE REFER TO THE COMPANY’S PROSPECTUS, WHICH IS INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM THE INFORMATION AGENT, GEORGESON INC., BY CALLING TOLL-FREE AT ###-###-####.

Please complete all applicable information and return to the Subscription Agent:

COMPUTERSHARE INC.

Delivery of this Subscription Rights Certificate to an address other than as set forth above does not constitute a valid delivery.