We keep seeing double digital declines in same store sales. Why? And what the plan to fix that? Eddie didn't answer those questions in today's blog.
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- It is so refreshing to see someone else on this board that understands the reality of the situation that SHLD is in. I understand that some people like to be optimistic, however, the belief that Eddie is executing some fanciful transformation and/or another entity is going to swoop in and save SHLD is just delusional.
Amazon is not trying to buy SHC. You do realize that if you buy a company you also buy the debt, right?
4 billion in debt, properties and inventory pledged to cover the loans from the past three years, old stores in need of upgrades, old stores filled with asbestos, pension payments due, properties that have gone unsold for years and more coming up for sale. Why would anyone buy this when they can wait for BK and get them for pennies on the dollar?
Oh, and debt is 30X earnings. No way to save the company with cuts or sales.
What kind of moron thinks not advertising is a sign of success? They already preannounced they lost a sh---ton of money yet again. And not advertising may save a little in the short term but it costs sales in the longer term too. Those people that didn't shop Sears and KMart shopped elsewhere. They'll probably go back there. Its a death spiral.
Sorry, that's not right. The announcement was about the 1st two months of the 4th quarter - November and December. So that -17% did cover Christmas sales. Busiest time of the year at a record breaking retail holiday and these ding dongs were -17% comp sales. Add in the store closing revenue loss, and you're going to see a q on q shrinking of what, 25%? Losing that much money on a significantly smaller base is an unbelievably wretched performance. Guess they're not done closing "unprofitable" stores.
SHC fiscal year ends in January, so the 4th quarter is Nov. Dec. Jan. Just so everyone has that straight. The declines they announced were for Oct. Nov. Christmas sales were not included in that number. They will be dismal as well
"Whirlpool -- It was all Sears's choice to let that one go"
TECHNICALLY. it was their choice. in reality a retailer doesn't have a choice if their only options are to pay in full or to not do business. When it was said that sears dropped whirlpool due to unfair business deals I assume that's what they meant but who knows honestly.
All the other retailers seem to be content.
"It angers me to see the buyers stuffing the goddamned store full of silly crap"
Having a store filled with pointless stuff is significantly better than having a store that has only a few high quality items in stock at a time. Once they're sold you're back to looking empty and you still have no money due to low volume. Your store would probably be empty for more days than it would actually have merchandise.
In both cases you probably aren't making much profit. One just looks better in the eyes of a typical consumer.
And what the plan to fix that?
Close more stores, of course. Haven't you been paying attention?
Sears managed to get a heck of an appliance sale to my apartment complex owner a year or so ago. 180 washers and dryers. All the lowest of the low end Kenmore - even fewer features than depicted on the lowest-end Kenmore I could find on sears.com at that time. What's up with that?
Well -- I don't know how many HA sales I've walked... kitchens, washers and dryers, even landlords looking to buy in multiples for however many apartment units. I know I'm not the only one out there facing these vendor issues, excuse me -- "availability issues" --
It angers me to see the buyers stuffing the goddamned store full of silly crap -- notepads, robot toys, santa suits AFTER the holidays, a pallet of cheap microwaves -- -- I get it, it makes the store look full but no one wants that crap! Thats what a goddamned dollar store is for! What they do -- blow all their money on cheap crap and let the relationships with the vendors that sell them the real bread and butter -- --- home appliances -- wither and die. Like a goddamned drunk who won the lottery.
Whirlpool -- It was all Sears's choice to let that one go -- who knows with Samsung and LG, or G.E. and Fridgidaire for that matter. A lot of stuff -- guess what -- unavailable. So -- like any reasonable vendor would do, they limit orders when there's trouble on the horizon.
Kenmore -- anything higher than low end builder grade crap is "unavailable". So where do my sales go? Across town to where it is available. May not be "in stock today"--but at least they can get it without playing any games with what is available and what isn't.
SYW is indeed the key.... watch for it....
"Did they end up making more money year over year in the end by doing so?"
From the store stats I saw employees sharing here after Thanksgiving weekend, definitely not.
Double digit declines in store sales because Sears pulled out of almost all print media/TV period over the 4th quarter. Did they end up making more money year over year in the end by doing so? The numbers will tell. The other retailers were all very visible in print media/TV media.
Shop your way is the key to saving us lol. Eddie doesn't have a plan on saving any stores. When has a new kmart store opened. Probably back in 2002. A long time in retail years. Sears stores maybe a little more. If he downsized them and sold off a part of the original store. They probably got an upgrade.
Too much investment I guess. Walmart,jcpenney,kohls,and target invest in their stores and the online sales channels All of them had a huge bump in sales over the xmas season. Sears and kmart keep up with same old tired ideas. Too little too late.
Amazon has negotiated a purchase of all sears and Kmarts, will take place in the spring.
Trying to rightsize the workforce, mothball the properties until it’s complete then reopen those too.