Stores going out of business

Discussion in 'The OT' started by Rich, Apr 13, 2017.

  1. Herdfan

    Herdfan Well-Known Member

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    Teays...
    Looks like Sears is close to filing for bankruptcy.
    Sears Hires Advisers to Prepare Bankruptcy Filing

    They recently closed our K-Mart which upset my daughter. For some reason she and many of her friends loved that store. I always though it was a dump.
     
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  2. TheRatPatrol

    TheRatPatrol Hall Of Fame

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    It was just a matter of time, I’m surprised they lasted this long.
     
  3. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    Sears has lasted a lot longer than Montgomery Ward, which went belly up in 2001. One wonders how Sears would have fared had they not been bought out by KMart.
     
  4. Nick

    Nick Retired, part-time PITA DBSTalk Club

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    One also wonders why Sears, with its once massive mail order catalog operation, didn't see the future of internet retail and convert to web-based sales, a la Amazon. There's got to be a story there about missed opportunities.
     
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  5. Mark Holtz

    Mark Holtz Day Sleeper

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    Richardson,...
    Montgomery Wards - 1872 to 2001
    Sears - Founded 1886
    KMart - Founded 1899

    Of course, when your stock is like this...
    SHLD_0.4866_-0.0985_-16.83%__Sears_Holdings_Corpo 2018-10-10 22-55-48.png
    It isn't investment grade.
     
  6. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    So the shoe has dropped. As expected, Sears entered Chapter 11 yesterday, announcing that 142 Sears and Kmart stores are to be closed. The last remaining Sears store in the Charlotte area, at Carolina Place Mall in Pineville, is on the list. Liquidation sales will begin immediately. Eddie Lampert, the CEO, is finally gone.
     
  7. longrider

    longrider Well-Known Member DBSTalk Club

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    He may be gone as CEO but he still owns the place through his funds
     
  8. jimmie57

    jimmie57 Hall Of Fame

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    Yes, he and his funds are almost 50% owners of the store.
    CNBC said he is still the Chairman.
     
  9. inkahauts

    inkahauts Well-Known Member

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    And it’s interesting they aren’t going completely out of business. Well see if they keep going...
     
  10. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    Yes, he is still chairman, bu no longer the CEO.
     
  11. Mark Holtz

    Mark Holtz Day Sleeper

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    Richardson,...
    One of the things that lead to Sears downfall was the drastic cost slashing to increase shareholder value. I recognize that mantra in IT where they want to increase profits and slash costs, especially when you are potentially one of the costs to be slashed. Anyways, one of the areas was slashed for almost a decade was spending for store improvements. I saw an article this week that Sears was spending 9 cents per square foot on store improvements compared with $3-$4 industry average. Over years, that results in a deteriorating condition of the stores. In addition, the merchandise setup was quite sad.... if there was merchandise to display in the first place. Many times, the walls were bare.

    I don't know how Sears will recover. Another mantra that I've heard is that it's hard to acquire a customer, easy to the customer, and extremely hard to get that customer to come back once you lost them.

    Another thing to consider... if you open up a store in a mall, you often pay the monthly lease fee which includes both the physical space PLUS a percentage of your gross sales. Ouch!
     
  12. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The alternative could be a flat rate that does not go down when sales go down. While profit sharing isn't pleasant when sales are high "loss sharing" help when sales are low. Of course, the malls are also taking a risk - hoping that they will make more money with a base plus percentage than a higher base. As stores continue to fail the malls are now suffering.
     
  13. TheRatPatrol

    TheRatPatrol Hall Of Fame

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    The one thing I keep hearing is that Sears could have been Amazon if they hadn’t discontinued their catalog way back in 1994.

    I feel bad for the retirees collecting pensions, what will they do? So sad.
     
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  14. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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  15. SamC

    SamC Hall Of Fame

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    For those of you without Ollie's in your area, it is the master of bottom feeder liquidators. Just a total mix of whatever, from failed new Pop Tart flavors, to monogramed sports uniforms never picked up, to over runs of hardback books to whatever. You really need to go every month because the mix is always changing.
     
  16. Mark Holtz

    Mark Holtz Day Sleeper

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    Richardson,...
    While there is the Pension Benefit Guaranty Corporation (PBGC) (established in 1974) to help safeguard the pension, the sad truth is that those people will get only a fraction of what they were promised. Because of the liability, most companies have gone away from pensions and towards 401(k) plans. This is why I'm putting in as much as I can.

    We won't go into public sector retirement plans....
     
  17. Rich

    Rich DBSTalk Club DBSTalk Club

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    I left Union Carbide with a full pension. Union Carbide was swallowed by Dow and I still have the full pension.

    Rich
     
  18. jimmie57

    jimmie57 Hall Of Fame

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  19. Rich

    Rich DBSTalk Club DBSTalk Club

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