why is sears on the way to bankruptcy?

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Originally Posted By: 4WD
Never bought clothes at Sears - and hope they get out of those wasted efforts -
Man, the name selling seems like the latest questionable decision - Kenmore, Craftsman, Diehard, etc are brands that have worked out well for me in the 2 smaller towns I have rooftops ...


I agree. But theyve spoiled them too. Offshoring Craftsman means I wont buy them anymore. Their auto centers (and K-mart's) not stocking ready inventory of most batteries, plus funny games with tire pricing has made that undesirable too.

Kenmore has always just been a repackaging of other makers' stuff, so Ive never quite understood the value add there...
 
Kenmore is a customer - if one make is not working out - business goes elsewhere ....

I have five stainless Kenmore Elite appliances - all 11 years old. Zero repairs...
 
Historically had been a happy Craftsman and Kenmore user and customer. Yes, Kenmore was just rebadged things from other manufacturers, but often had a slightly different mix of features than the regular brand it was based off of.

Fast forward, and now I could share the horror stories of family members and delivery of items. Seems to be a common theme, and if I understand it correctly, those services are now outsourced.

And checking out should not be an exercise of answering 10 different questions and checking a bunch of boxes and remembering loyalty rewards stuff. Buying one $10 hardware item turns into a 5 minute cash register transaction to answer all the questions, etc...

Made sure I had used my last sears gift card up recently - guessing they will go the way of Sports Authority sometime in the next few years... Used my Sports Authority gift cards about a month before "the end". The store felt like it, and now so does Sears...
 
Originally Posted By: 4WD
Kenmore is a customer - if one make is not working out - business goes elsewhere ....

I have five stainless Kenmore Elite appliances - all 11 years old. Zero repairs...


Check the serial number. Depending on the first few digits, you can figure exactly who makes them. They're all contracted out, Frigidaire, Whirlpool, LG, Samsung, GE etc.

http://www.appliance411.com/purchase/sears.shtml
 
Originally Posted By: javacontour
The other thing people are not considering is that Sears sold credit.


Interesting. I had forgotten that Sears introduced the Discover card in the 1980's. It was my first credit card because, as a college student, it was the only one that came without an annual fee. I wonder if this business segment is still profitable for Sears.
 
Another issue for Sears is that most of the stores are anchors at shopping malls. Shopping malls seem to be on the way out as well. I know, I know, not ALL malls are doing poorly, but many are. Two large malls closed in the Dallas area in the last decade and the management company of the large mall nearest my home stopped making lease payments over six months ago. The parking lot is a bit more full now due to holiday shopping, but it's a shadow of its former glory.
 
Originally Posted By: CapitalTruck
KMart was on the way out...Sears then bought them. I don't understand why they did that. They cheapened the Craftsman brand by selling at KMART.


It's actually the other way around, Kmart bought Sears...
 
I know - don't think any that far back are LG ... that ramped up allot after KORUS disaster ...
Washer and dryer I go Maytag ...
... have a Kenmore fridge at the bay house that is 15 years old - runs in 90 degrees most of summer ...
Cheapest I could buy frost free back then ... something tells me I'll never see that happen again ...
 
I had to do some fast replacement of tools in 1994 because mine were stolen from a job site. I found a brand called Benchtop at KMart. They had lifetime warranty. I bought a decent socket set. The ratchets ended up being junk, but the sockets themselves were well made and plated and I still use them - with Craftsman ratchet handles. 8-D
 
Sears just closed their local tire store leaving a lot of folks with "free rotations" to drive about 25 miles to get them.
 
Originally Posted By: JHZR2
Originally Posted By: 4WD
Never bought clothes at Sears - and hope they get out of those wasted efforts -
Man, the name selling seems like the latest questionable decision - Kenmore, Craftsman, Diehard, etc are brands that have worked out well for me in the 2 smaller towns I have rooftops ...


I agree. But theyve spoiled them too. Offshoring Craftsman means I wont buy them anymore. Their auto centers (and K-mart's) not stocking ready inventory of most batteries, plus funny games with tire pricing has made that undesirable too.

Kenmore has always just been a repackaging of other makers' stuff, so Ive never quite understood the value add there...
My local Sears started ramping down on tools perhaps 6 - 8 years ago. Now there are hardly any tools available. I bought my first good tools at Sears in '77 - and still have them.

I do still find them good for major appliances - I heard they will only tolerate about a 2% failure rate (i.e. warranty claim rate) from their suppliers, so their stuff, re-badged or not, tends to be pretty reliable. Our dishwasher, oven, and microwave were all purchased from Sears two or three years ago. They're pretty big into garage door openers, which are re-badged Chamberlains.

However, without the tool availability I seldom go there anymore.

They're going the way of Eaton's and The Bay here - moving toward only clothing and perfume, and also toward oblivion. When I was young, the bike to have was an Eaton's Glider (a re-badged Raleigh, made in Nottingham). I doubt Eaton's sold bikes after the 70s, and Eaton's disappeared years ago.
 
Originally Posted By: Pop_Rivit
Originally Posted By: gfh77665
Originally Posted By: 4WD
Isn't this another re run ? - or do we just need endless pile on's and beat downs on this site ?


Posters here love to beat down on Sears. They actually WANT it to die, and eliminate jobs and competition.

The real reason its hurting is Walmart, Lowes, Home Depot, Costco.


Nonsense. The incompetence of the CEO is what is causing Sears Holdings (which includes Kmart) to fail. Lampert had no idea how to run a streamlined, teamwork and goal oriented retail operation. He fragmented the company to the point that divisions within a store were trying to compete against each other rather than working as a cohesive unit.

Lampert put shareholders above everything else. During the time that Sears was flush with cash, Lampert took billions of dollars of share repurchases, at the expense of years of underinvestment in the stores, inventory, advertising, and technology. For a time it created the illusion that the company was doing better than it was by driving up per-share earnings. It started a spiral that has been describes as the longest going out of business sale in U.S. history. With the competition improving and Sears stagnant, people took their money elsewhere, and Lampert found he had a sinking ship.

Anyone who has been around retail knows that the industry is predicated on serving the customer, valuing the customer, listening to the customer, and giving the customer what they want. Anything less is a recipe for suicide.

I for one will be happy when Sears Holdings finally rolls over and dies. They've been a drag on the economy, a drag on the market, and should be held up as an example of how to do absolutely everything wrong when running a retail organization. It, in my opinion, is too bad that what Lampert has done doesn't come with criminal penalties. Lampert, at this point, has given up and is working to extract every last bit of value out of the business through financial maneuvers, while still declaring that Sears/Kmart are viable businesses.

Contrary to what a couple guys think, the downfall of Sears Holdings should be discussed, and the real reasons pointed out-greed and incompetence. Sears (and Lampert) deserve "endless pile on's and beat downs". Not only on this site, but everywhere.


Right-competition has nothing to do with it. Sounds like somebody got burnt on some Sears stock......
 
Went into the local small Mom/Pop Sears to replace the pull cord on my CRAFTSMAN mower, the owner has a desk by the front door, he was sitting there as I walked in and he never said a word as I walked by, asked one of the employees if they had the pull cord, said they don't carry them, on my way out passed the owner again, made eye contact but not a word was said, picked up the pull cord at the local WallyWorld, needless to say haven't been back.
31.gif
 
Originally Posted By: 4WD
These kind of posts bring out all the business experts with IT support jobs !


OKAY "Ops Manager" if you are so enlightened why would you degrade your consumer base? Explain the logic in this line of reasoning. While you are at it what kind business person be so lazy to abbreviate his title to "Ops" and belittle the consumer for providing nearly universal feedback why a business is failing. This an former American icon who transformed consumer goods and services. Sears was considered the leading edge and it was the standard department store. Now it is a nearly complete failure and the consumers are providing valuable insight why.

Yet all you have added with your expertise as a "Ops Manager" is a lot of sarcasm and no substance.
 
Originally Posted By: Pop_Rivit
Originally Posted By: gfh77665
Originally Posted By: 4WD
Isn't this another re run ? - or do we just need endless pile on's and beat downs on this site ?


Posters here love to beat down on Sears. They actually WANT it to die, and eliminate jobs and competition.

The real reason its hurting is Walmart, Lowes, Home Depot, Costco.


Nonsense. The incompetence of the CEO is what is causing Sears Holdings (which includes Kmart) to fail. Lampert had no idea how to run a streamlined, teamwork and goal oriented retail operation. He fragmented the company to the point that divisions within a store were trying to compete against each other rather than working as a cohesive unit.

Lampert put shareholders above everything else. During the time that Sears was flush with cash, Lampert took billions of dollars of share repurchases, at the expense of years of underinvestment in the stores, inventory, advertising, and technology. For a time it created the illusion that the company was doing better than it was by driving up per-share earnings. It started a spiral that has been describes as the longest going out of business sale in U.S. history. With the competition improving and Sears stagnant, people took their money elsewhere, and Lampert found he had a sinking ship.

Anyone who has been around retail knows that the industry is predicated on serving the customer, valuing the customer, listening to the customer, and giving the customer what they want. Anything less is a recipe for suicide.

I for one will be happy when Sears Holdings finally rolls over and dies. They've been a drag on the economy, a drag on the market, and should be held up as an example of how to do absolutely everything wrong when running a retail organization. It, in my opinion, is too bad that what Lampert has done doesn't come with criminal penalties. Lampert, at this point, has given up and is working to extract every last bit of value out of the business through financial maneuvers, while still declaring that Sears/Kmart are viable businesses.

Contrary to what a couple guys think, the downfall of Sears Holdings should be discussed, and the real reasons pointed out-greed and incompetence. Sears (and Lampert) deserve "endless pile on's and beat downs". Not only on this site, but everywhere.



Pretty much what I said, but in greater detail....
wink.gif


But I agree....
 
Originally Posted By: DBMaster
Originally Posted By: javacontour
The other thing people are not considering is that Sears sold credit.


Interesting. I had forgotten that Sears introduced the Discover card in the 1980's. It was my first credit card because, as a college student, it was the only one that came without an annual fee. I wonder if this business segment is still profitable for Sears.


Sears sold it off years ago.

I think Discover Card became it's own standalone company in 2007, around the time of the financial meltdown.
 
Originally Posted By: Pop_Rivit


Nonsense. The incompetence of the CEO is what is causing Sears Holdings (which includes Kmart) to fail. Lampert had no idea how to run a streamlined, teamwork and goal oriented retail operation. He fragmented the company to the point that divisions within a store were trying to compete against each other rather than working as a cohesive unit.

Lampert put shareholders above everything else. During the time that Sears was flush with cash, Lampert took billions of dollars of share repurchases, at the expense of years of underinvestment in the stores, inventory, advertising, and technology. For a time it created the illusion that the company was doing better than it was by driving up per-share earnings. It started a spiral that has been describes as the longest going out of business sale in U.S. history. With the competition improving and Sears stagnant, people took their money elsewhere, and Lampert found he had a sinking ship.

Anyone who has been around retail knows that the industry is predicated on serving the customer, valuing the customer, listening to the customer, and giving the customer what they want. Anything less is a recipe for suicide.

I for one will be happy when Sears Holdings finally rolls over and dies. They've been a drag on the economy, a drag on the market, and should be held up as an example of how to do absolutely everything wrong when running a retail organization. It, in my opinion, is too bad that what Lampert has done doesn't come with criminal penalties. Lampert, at this point, has given up and is working to extract every last bit of value out of the business through financial maneuvers, while still declaring that Sears/Kmart are viable businesses.

Contrary to what a couple guys think, the downfall of Sears Holdings should be discussed, and the real reasons pointed out-greed and incompetence. Sears (and Lampert) deserve "endless pile on's and beat downs". Not only on this site, but everywhere.


Totally agree.

What is most interesting about their situation is how poor our institutional investment system works.

It should be obvious to anyone who looks at Sears from a business perspective that it is a dying company and has been dying for years. That should mean that their stock is only worth their break up value.

But the market aka institutions who invest other people's money, still think Sears is worth $1.37 billion when its been losing over $1 billion a year for years and has NEGATIVE net tangible assets.
 
Originally Posted By: gfh77665
Originally Posted By: 4WD
Isn't this another re run ? - or do we just need endless pile on's and beat downs on this site ?


Posters here love to beat down on Sears. They actually WANT it to die, and eliminate jobs and competition.

The real reason its hurting is Walmart, Lowes, Home Depot, Costco.


I'd like nothing better than to see sears succeed. But the sears of 30 years ago is not what we have now. I have a fair amount of older sears tools, but nothing about sears makes me shop now, china and what not. Bring back the sears of old and it would do well.

( bring back the candy/snack counter!!!)
 
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