The department store thread

[Rewind]

My, my. As the months fly by, it's looking more and more likely that Sears will go bye-bye.

It's a do-or-die Christmas for Sears and Kmart
CNN, Nov 21 2018

Sears' 133rd holiday season could be its last. The company plans to emerge from bankruptcy much smaller but profitable and competitive, but that might be wishful thinking. By next year, there's a very good chance the iconic retailer will be a ghost of Christmas past.

"I'd say the chance of them making it to next year are no better than 50-50, and maybe not even that good," said Philip Emma, a senior analyst with Debtwire, a financial research firm. "They've got a pretty tough road ahead."

The problem for Sears is getting its vendors to provide it with the inventory it needs to attract shoppers to the roughly 400 Sears and Kmart stores it plans to keep open. Vendors have been reluctant to ship goods without being paid cash up front, worried they wouldn't be paid at all. Sears' most recent financial results suggest it would have difficulty securing the products it needs.

A year ago, Sears reported holiday quarter sales plunged 16% at the stores it was keeping open. Customers avoided Sears and Kmart. Rival department store chains such as Macy's and Kohl's and even troubled JCPenney all reported improved holiday season sales last year.

https://www.msn.com/en-us/money/comp...WMJJ?ocid=AMZN

[Rewind]

I wonder if Lampert's plan from the beginning was to buy Sears and he drove the chain into bankruptcy so he could get it at a much lower price -- or am I just overly suspicious?

Eddie Lampert, former Sears CEO who ran chain into bankruptcy, offers to buy it

https://www.cbsnews.com/news/sears-c...offers-to-buy/

[Atypical]

It's the real estate and other peripheral assets that will significantly reduce his losses, and, likely, provide an ultimate profit.

It's never wrong to think the worst of corporate leaders and their motives.

https://www.nytimes.com/2018/10/18/b...d-lampert.html

[Rewind]

It amazes me that so many people shop at Costco. Do they not think it odd that they're required to pay money every year for the privilege of going to the store and spending more money?

Costco: Retail's overlooked holiday winner
CNN, Dec 13 2018 4:38 PM

Retailers are trying to draw holiday shoppers with splashy perks like free shipping, convenient new ways to shop and mobile checkout in stores. Costco has eschewed that strategy. It focuses instead on the reliable model that has attracted loyal club members to its no-frills warehouses over the years. Costco sells just a few thousand hot-selling items — from tires to flat-screen TVs to big jugs of mayonnaise — at cheaper prices than competitors.

Despite Costco's muted approach, it has emerged as a standout in the end-of-year retail crunch by perfecting its simple formula. During its most recent quarter, Costco's US sales increased 8.3% compared to the same quarter a year ago. That's higher than Sam's Club, which posted 5.7% growth; Target, which posted a 5.1% rise; and Walmart, which reported growth of 3.4% last quarter.

https://www.cnn.com/2018/12/13/busin...get/index.html

[Rewind]

Sears Holdings gave the same lame excuse that every big company uses to justify giving huge salaries and huge bonuses to management: "We don't want our top executives to quit and go elsewhere." I say let them quit. These companies could cut executive pay in half and never give bonuses and still be able to attract qualified, competent managers. They should try doing so.

While Sears/Kmart executives get $25.3 million in bonuses, laid-off workers struggle at Christmas time

https://www.nbcnews.com/news/us-news...ruggle-n949446

[Rewind]

If anyone is wondering why I don't post any good news about Sears, well, for the past several years there hasn't been any.

Sears plans 50 to 80 more store closures as challenges mount

https://www.msn.com/en-us/money/comp...hwET?ocid=AMZN

[Rewind]

We've been focusing on the financial woes of Sears and KMart -- but one of Sears' competitors is having problems as well. Its share price reached a 15-year high of $82.16 in March 2007 but has been steadily declining in the past few years. It just fell below $1 for the first time since the company began trading in 1929. JCPenney could wind up being a "penny stock" next year.

JCPenney stock is now 97 cents a share

https://www.cnn.com/2018/12/26/inves...ock/index.html

[Rewind]

Between 1993 and 1997, Sears spent $4 billion on store renovations and $40 million annually on marketing and advertising. Sears modernized their apparel, footwear and cosmetics departments and targeted women with an ad campaign inviting them to "Come see the softer side of Sears." The changes worked. Sears had lost $2.9 billion in 1992 but posted a profit of $1.8 billion in 1995. Then came the 2000s. Sears has not posted an annual profit since 2010 -- and we may soon be posting Sears' obituary notice.

Sears may be down to its last 24 hours. Retailer likely liquidates if no bid comes in by tomorrow.

https://www.cnbc.com/2018/12/27/sear...-tomorrow.html

[Rewind]

Sears' advisers have until January 4 to decide whether to accept Eddie Lampert's bid. He thinks he can save the dying department-store chain. Umm.......like CEO David Brandon saved Toys Я Us?

Sears wins reprieve from liquidation as chairman makes last-minute bid on bankrupt company

https://www.msn.com/en-us/money/comp...y8ns?ocid=AMZN

[Rewind]

CNN business reporter Chris Isidore says it's "do-or-die time" for Sears. If I were a gambling man, I would put all my money on "die." And three days ago, the company announced the closure of 43 additional Sears stores and 37 additional Kmarts. At the rate their stores are closing, pretty soon there will be no stores left to save.

It's do-or-die time for Sears

https://www.cnn.com/2018/12/31/busin...ure/index.html