Beginning of the End for Sears and K-Mart?

[hegemony]

http://www.businessinsider.com/sears-workers-reveal-bad-workplace-2016-8

[Burgerwars]

It looks like the Sears near me is trying to go out of business. On the second floor, where most of the clothes is, they only have one kiosk of cash registers to check out. It's not worth waiting on line. Customer service, or having any employees to keep the store in shape and to assist customers, is not a priority with Sears.

Edited August 28, 2016 by Burgerwars

[TheVig]

When the who thing colapses for once and for all, maybe the rights to the Sears name will be sold off. Might be something Swiss Colony / Montgomery Wards would be interested in. lol.

[IndyPoolPlayer]

Maybe, though Sears Holding is already shopping the rights to the Kenmore, DieHard, and Craftsman brands around.

[david_weaver]

Maybe, though Sears Holding is already shopping the rights to the Kenmore, DieHard, and Craftsman brands around.

 

The only issue with that is the brands are not worth nearly what they used to be.

 

The margin on appliances is so razor-thin. Plus, as Kenmores are just re-badged appliances from other manufacturers, often people can get the same appliance with a Maytag of Whirlpool nameplate at Best Buy or Lowe's for less cost.

 

I remember when I was younger, Sears advertised Die Hard all winter long (and even some during really hot parts of summer). They do not advertise now. And so few people do their own car maintenance anymore.

 

Same applies to Craftsman. I do not see advertising anymore. Society focuses so much more on the disposable. People want a cheap hammer that works. They do not care that they could buy one at Sears that would be the last hammer they ever have to buy, that they could pass sown to their children in their will.

 

If you do not constantly build (or at least reinforce a brand), it falls. There can be no complacency.

 

That is not to say these brands do not have value. The issue is that these brands have the highest value to people like ME who are 50+. I am absolutely NOT who the advertisers and most businesses are targeting. I doubt my 20-something daughter could tell you anything about Kenmore, except maybe that she associates it with Sears, but I am not sure that is even a given. I doubt her 20-something husband would know how to change the battery (or the oil) in a car, and I do not think Craftsman would be the name that came to mind if he needed tools to try.

 

As with most things Sears/K-Mart, the longer time drags on, the less valuable all their assets become. Their brands diminish year by year as their customer base ages. Their real estate loses value (or slows in its increase in value) as people abandon the traditional sort of suburban malls where Sears is ubiquitous. And as they have been selling off real-estate assets, so far they have been able to cherry-pick locations in high demand but where Sears (or K-Mart) is no longer a viable option. In my upscale-urban mall they sold the Sears location and the mall broke it up into a few dozen high-end stores and restaurants, basically eliminated an anchor in favor of an overall expansion of the mall. But sooner or later, all they will be left with are under-performing locations ready for a bulldozer.

 

There are turning points in any corporation's life cycle. Some win, some lose. Kodak developed the digital camera decades ago and shelved it so it did not hurt their film sales. Now, I have a dozen devices in my home with cameras and Kodak is a bankrupted shell of what it could have been. Sears canned their catalog just as the internet exploded. They had piles of cash back then. They had a distribution network second to none. THEY could have been Amazon. But they lacked the vision. They looked backwards instead of to the future. And now, like so many before them, they will be a footnote in the retail landscape, the blinded Goliath felled too many Davids to list.

[PotO]

^^^

 

I liked Sears.

[IndyPoolPlayer]

In an amusing bit of irony - Sears ran a TV ad where the couple was wandering around the home center (which represents Lowe's or Home Depot) looking for someone to sell them an appliance. They find someone from "fertilizer", and pan to Sears where people are waiting to help you. HA! Last time I was in Sears it was literally "Helllllooooooo? Anyone here? Did the store close and the manager forgot to lock the doors?"

[TheVig]

The Sears at Carolina Place mall has more than enough people covering the appliance dept. Walking thru that area is about the equivelant of visiting a car dealership. You will have at least 8 salespersons asking if you need help.

 

The mattress dept on other hand is almost always staffed by only 1 person and they are old enough to have witnessed the signing of the Declaration Of Independence.

 

And then there is that area bwtween appliances and matresses...............tread mills and other fitness equipment. That's either maned by someone who drew the short straw that day or some wanna be gay trendy hipster type.

 

Craftsman......most all of their hardline tools are now contracted out to Chicom manufactures and have been for some time. Made in the USA doesn't matter to the typical consumer these days. Only thing worse than Craftsman Chinese made combination wrenches, are the indian made combination wrenches Harbor Frieght sells. My living is industrial maintance / millwright. My employer has a list of Harbor Frieght tools that are forbidden at work.........immediate grounds for termination if caught using.

[IndyPoolPlayer]

My living is industrial maintance / millwright. My employer has a list of Harbor Frieght tools that are forbidden at work.........immediate grounds for termination if caught using.

 

Ironic. My former employer recommended employees go to Harbor Freight to buy their tools. Not that the company reimbursed the cost of tools or anything like that.

[TheVig]

 

My living is industrial maintance / millwright. My employer has a list of Harbor Frieght tools that are forbidden at work.........immediate grounds for termination if caught using.

 

Ironic. My former employer recommended employees go to Harbor Freight to buy their tools. Not that the company reimbursed the cost of tools or anything like that.

 

 

Every place seems to have different policies from one place to the next.

[unleashedfury]

Sears has been dead for years it just doesn't want to lie down.

 

They never specialized it was always aimed at being your one stop shop for everything. The craftsman brand was the quality budget tool to avoid spending your paychecks with snap on or mac. You still got a great tool and a lifetime warranty. lowered the quality and have to compete with kobalt, husky, gearwrench. Etc. Who also make a decent middle of the road tool and offer a lifetime warranty. And you can purchase them at specialty stores. Someone who is learning car maintenance, can stop at the auto parts store. Get supplies, parts and a gearwrench set. Without having to run to Sears to get craftsman brand. Saves rhem the trip a few dollars and they are getting a similar tool. With a name on it, and a guarantee.

 

Oh and Vig, I learned my lesson the hard way with Harbor Freight tools. When I first started out as a auto tech I had a few quality hand tools. (Craftsman, snap on Matco) etc. And wanted to get everything I needed right away. Needless to say half of the cart of stuff I got at harbor freight died within a year. Guessing that as you said being a millwright, you do some machine work? I would never buy a precision measuring instrument from harbor freight that's just asking for mediocrity. The only things I really get there are disposable, tarps, sanding discs. Gloves stuff like that. However the Gas welding cart I bought a few years back still stands strong till this day.

[clc222]

I've bought a few tools from Hobo Fright over the years, but I generally stay away from anything they carry that has a motor. I do have their 20 ton press (works great for my needs, though I try not to use their cast press plates if I can help it), several misc hand tools (sockets and screw drivers), and one of their air-over-hydro jacks (on my tube bender -- I'd never trust it on an engine hoist). About the only consumable I'd buy there are their 9 mil nitrile gloves, but only because they're the same gloves that I would get at the local parts store and they're a couple of bucks less. I've tried their sanding disks, grinding wheels, and hacksaw blades... They all sucked. I'll stick to the name brand stuff from HD or Blowes (the Diablo "flapper disks" kick butt).

 

The last time I was in a Sears was years ago, and that was only to swap a busted Craftsman ratchet. The place was d e a d. I honestly can't imagine anything that I'd want that I would have to buy at Sears (or anything that they'd have a better price on).

[cv91915]

This thread has gotten way too butch for me.

[unleashedfury]

I've bought a few tools from Hobo Fright over the years, but I generally stay away from anything they carry that has a motor. I do have their 20 ton press (works great for my needs, though I try not to use their cast press plates if I can help it), several misc hand tools (sockets and screw drivers), and one of their air-over-hydro jacks (on my tube bender -- I'd never trust it on an engine hoist). About the only consumable I'd buy there are their 9 mil nitrile gloves, but only because they're the same gloves that I would get at the local parts store and they're a couple of bucks less. I've tried their sanding disks, grinding wheels, and hacksaw blades... They all sucked. I'll stick to the name brand stuff from HD or Blowes (the Diablo "flapper disks" kick butt).

 

The last time I was in a Sears was years ago, and that was only to swap a busted Craftsman ratchet. The place was d e a d. I honestly can't imagine anything that I'd want that I would have to buy at Sears (or anything that they'd have a better price on).

I must say though I did purchase an engine hoist, and one of those aluminum floor Jack's there. They both paid for themselves 5 times over again. Engine hoist probably dropped in 5 engines by now. Not bad for 150. The aluminum Jack is my main Jack 70 bucks and it's been pretty abused

[clc222]

 

I must say though I did purchase an engine hoist, and one of those aluminum floor Jack's there. They both paid for themselves 5 times over again. Engine hoist probably dropped in 5 engines by now. Not bad for 150. The aluminum Jack is my main Jack 70 bucks and it's been pretty abused

 

 

I've always wondered about those aluminum jacks. I could use a low profile jack around the garage. The only jack I have is a big 3 ton Craftsman jobbie that doesn't fit under any of the cars (I can only use it on my trucks and Jeep).

[TheVig]

This thread has gotten way too butch for me.

Sears also sells "Pink Boxes". Pink colored tool boxes.

[cv91915]

 

This thread has gotten way too butch for me.

Sears also sells "Pink Boxes". Pink colored tool boxes.

No.

[unleashedfury]

 

I must say though I did purchase an engine hoist, and one of those aluminum floor Jack's there. They both paid for themselves 5 times over again. Engine hoist probably dropped in 5 engines by now. Not bad for 150. The aluminum Jack is my main Jack 70 bucks and it's been pretty abused

 

I've always wondered about those aluminum jacks. I could use a low profile jack around the garage. The only jack I have is a big 3 ton Craftsman jobbie that doesn't fit under any of the cars (I can only use it on my trucks and Jeep).

I found it works well for most of my cars. I wouldn't trust it under a old school Buick or anything. But off road mag did rate it a must have.

[rs1129]

We were in the one here not too long ago killing time and walked through the store to find 2 open cash registers. The girl behind one had her cell stuck to her ear while half-flowers sorted hangers, and the other one had 2 customers in line and their old af pre-2000 computer/cash register was broken. She was on hold with tech support.

 

If nothing else were screaming that Sears is in it's death throes, the amount of cash it would take to refresh their tech screams it loud and clear.

 

Oh, and the pink tool boxes are a must have. I want one for work just for giggles.

[IndyPoolPlayer]

Another article potentially predicting the demise of Sears:

Sears, Claire’s at high risk of retail failures, Fitch says
Bloomberg News and IBJ Staff September 28, 2016
Sears Holdings Corp., Claire’s Stores Inc. and Nine West Holdings Inc. are among seven chains at high risk of defaulting within a year as shoppers shift to online merchants and spend more on experiences, according to a Fitch Ratings study of retail bankruptcies.

The companies were named in a 114-page report Wednesday that found retailers wind up liquidated almost three times more often than other companies in bankruptcy because customer defections are making turnarounds harder to execute.

Other chains at risk include True Religion Apparel Inc., 99 Cents Only Stores LLC, Nebraska Book Co. and Rue21 Inc., Fitch said.

Adam Kleinman, a spokesman for Nebraska Book, said Fitch’s report didn’t take into account a debt exchange completed on Sept. 19. The company is not at high risk of defaulting and has “ample runway to execute its business strategy,” he said. Representatives for the other companies declined to comment or didn’t immediately respond to messages.

Sears Holdings operates more than 60 stores in Indiana carrying the Sears name, including 14 department stores, more than 25 Sears Hometown Stores, five Sears Hardware stores and more than a dozen Sears Auto Centers. There are two Sears department stores in the Indianapolis area (Castleton and Greenwood), plus four Hometown stores, three Hardware stores, two Auto Centers and one Appliance Outlet store.

Original Article is Here

[Konrad2012]

Wow. I just read today that Sears is burning $1.6 Billion a year in cash.

 

Last year they had $1.8 Billion in cash and equivalents, they are down to $275 million.

 

Sears also spun off all of their properties into a REIT a couple of years ago. Seritage Growth Properties. This netted Sears over $2 Billion (which they have burnt through). Seritage gets 80% of its rents from Sears/Kmart. Right now SRG sits at ~$50, with a 52 week high of $55 and a low of $35. The shorts have already devalued Sears Holdings, but this REIT sits relatively unscathed. Probably need to initiate a short position on them

[IndyPoolPlayer]

https://www.ibj.com/articles/64505-more-sears-kmart-stores-set-for-closure-in-indiana

Sears Holdings Corp. announced plans Friday to close 43 more stores, including three Sears department stores and one Kmart store in Indiana.

The closures are in addition to the 72 the struggling company announced in early June and the 150 it announced in January.

The most recent list includes 35 Kmart stores and eight Sears stores, including a Kmart at 2828 N. Broadway in Anderson and Sears stores in Clarksville, Elkhart and Schererville. The Schererville store is slated to close next month; the others are expected to close in October.

The closure of the Anderson Kmart will leave Indiana with only 15 remaining Kmart stores. The Indianapolis area will be left with only four remaining Kmarts—two in Indianapolis (6780 W. Washington St. and 5101 E. Thompson Road) and one each in Brownsburg and Elwood.

Sears will be left with only 10 traditional department stores in the state—in Castleton, Greenwood, Muncie, Lafayette, Terre Haute, Evansville, Fort Wayne, Merrillville, Michigan City and Mishawaka.

[mrjuggalo9er]

 

[W]ith Home Depot and Lowe's having their own 'house brands' of tools, how much is the same exact hammer worth just because of the label and the guarantee?

Lowe's carries the same warranty on their hand tools as Sears does with Craftsman. I have a lot of Craftsman tools in my toolbox, but lately I go to Lowe's and buy Kobalt.

Menards carries master force... Same warranty and they are American made

[cv91915]

 

 

[W]ith Home Depot and Lowe's having their own 'house brands' of tools, how much is the same exact hammer worth just because of the label and the guarantee?

Lowe's carries the same warranty on their hand tools as Sears does with Craftsman. I have a lot of Craftsman tools in my toolbox, but lately I go to Lowe's and buy Kobalt.

Menards carries master force... Same warranty and they are American made

 

 

I bought some frozen ribs from the Menard's in Mudland. Not bad in a pinch.

[mrjuggalo9er]

 

 

 

[W]ith Home Depot and Lowe's having their own 'house brands' of tools, how much is the same exact hammer worth just because of the label and the guarantee?

Lowe's carries the same warranty on their hand tools as Sears does with Craftsman. I have a lot of Craftsman tools in my toolbox, but lately I go to Lowe's and buy Kobalt.

Menards carries master force... Same warranty and they are American made

I bought some frozen ribs from the Menard's in Mudland. Not bad in a pinch.

+1 thanks for sharing