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Sears has 'substantial doubt' that it can survive

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Sears has 'substantial doubt' that it can survive

After years of huge losses and store closings, the future is officially in doubt for Sears and Kmart.

 

Sears Holdings (SHLD), the holding company for the two iconic retail brands, warned investors late Tuesday that it can't promise it will stay in business.

 

http://money.cnn.com/2017/03/22/news/companies/sears-kmart-future/

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13 REPLIES
Established Contributor

Re: Sears has 'substantial doubt' that it can survive

*sigh* I've never had credit accounts with either, but both stores were big parts of my life in my younger days from the 1960's through the 1990's. It'll really be a wrench to see two of the most storied names in U.S. marketing disappear, if it actually does happen.

Ch 7 BK discharged 12/14, well along in rebuilding credit. FICO 11/2/17:TU 660/EX 694/EQ 688 FICO 8 (Aug 2017) or 680 FICO 9 (Penfed Sep 2017), VS 3.0 11/7/17: TU 704/EX 690/EQ 697. $32.3K revolving credit as of 11/7/17; $951 Cap One secured Platinum MC, $2000 Apple FCU Platinum Visa,$3500 Amazon Prime Store Card, $3500 Walmart Store Card, $3500 Cap One Quicksilver MC, $3600 Discover It, $4000 Care Credit, $4300 Overstock Store Card, $7000 Penfed Power Cash Rewards Visa, $10k PenFed used car loan, $5k Navient student loan. In the garden again from 10/26/17 for at least the next 3 months unless I get a really really good preapproval.
Established Contributor

Re: Sears has 'substantial doubt' that it can survive

I recall the  "Sear's has everything" motto.  I worked for Sears  in college one summer.  I still love Sears appliances.  They were the best brands rebranded as Kennmore.   I think the rise of Walmart and dot.com really hurt.  The even had Sears catalog stores (franchise) in small towns all over.  We even had one here in Smalltown.   

Super Contributor

Re: Sears has 'substantial doubt' that it can survive

Like Montgomery Wards ... Sears stuck to their old marketing and merchandise and have killed themselves. They were the number one retailer years back. Most unfortunate.
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Established Contributor

Re: Sears has 'substantial doubt' that it can survive

If they close down some one will buy the name and Kennmore Brand and keep them as an online store.Montgomery Ward is still alive this way. Also Spiegel.   I can buy Craftsman tools already at Ace Hardware already.  In the 1970's and 1980's they had the Sear's Financial Network which accounted for half of the co profit.  It was Allstate Insurance, Discover Card,  Dean Witter Reynolds,and Coldwell Banker Real Estate.  They suffered from id crisis.  What were they Sears the store or Sears Financial Network?   I wrote a major paper on this while working on my MBA.   Allstate as an insurance co.  did very well and a large market share not because of rates but because they had offices in the Sears stores.  

Established Contributor

Re: Sears has 'substantial doubt' that it can survive

Another company ruined by poor management.  Still sad about Sports Authority lol!

 

I would've been happy to shop at Sears online if they would've had low prices and free fast shipping like Amazon.  Sears website is horrible, so difficult to use and confusing, many products don't even have detailed info.  

 

I mean hey, if you're not going to keep your customer's happy and keep up with your competitors, then you're not smart enough to stay in business.

Super Contributor

Re: Sears has 'substantial doubt' that it can survive


Backwoods wrote:

If they close down some one will buy the name and Kennmore Brand and keep them as an online store.Montgomery Ward is still alive this way. Also Spiegel.   I can buy Craftsman tools already at Ace Hardware already.  In the 1970's and 1980's they had the Sear's Financial Network which accounted for half of the co profit.  It was Allstate Insurance, Discover Card,  Dean Witter Reynolds,and Coldwell Banker Real Estate.  They suffered from id crisis.  What were they Sears the store or Sears Financial Network?   I wrote a major paper on this while working on my MBA.   Allstate as an insurance co.  did very well and a large market share not because of rates but because they had offices in the Sears stores.  


Sears Holding is exploring the sale of Die Hard Batteries and Kenmore Appliance ... that said creditors and those with investments in Sears are calling foul if Sears try to sell the brands lessing the amount of available cash should a bankruptcy be filed. The bet is Sears needs 2 billion in cash for operations for 2017 and the same for 2018. Since Sears has fallen out of favor with shoppers, creditors do not believe Sears/KMart cannot finish 2017. Maybe it is time for you to do an addendum to your paper as it seems to be an interesting time in Sear's life.

 

I remember when Mobil Oil purchased Montgomery Wards 1982 and threw in the towel 2000. As you mentioned a catalog for Montgomery Wards and Spiegel still exists. Until you mentioned it, frankly I had forgotten and I bet many other online shoppers forgot too as I never see anything on the two.

 

Your paper could also add in the death of the Mall Shopping Centers in America due to our move to the internet. I was involved in building a $35 million dollar Outlet Mall and the retailers questioned the viability due to the over malling of America back to 1993+. The Outlet Mall is doing very well with about 120 stores and 300,000 sq. ft.+ but, some of the other malls have dropped out of sight. Some even have been transitioned to other uses or been demolished.

 

In reading the last few days, loosing anchors stores such as Sears, Macys and the like will make the mall form of life even more difficult. Strip Malls are the wave of the future so I read yet, many of the stores attracted to strip malls are dying at accelerating rate. As you are aware ... we overbuilt Malls and Stores in general so a market shake out was due a long time ago and actually predicted clear back when we built the outlet mall.

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Re: Sears has 'substantial doubt' that it can survive

It will be sad to see Sears become an online-only retailer like Montogomery Ward became (If it happens) Smiley Sad Kmart was a big part of my life from age 0-8 ish

 

I would say Montogomery Ward online is just like Fingerhut same overpriced items and same pay in low payments easy credit type of gimmick.

 

 

I did not get to see Montogomery Ward before it closed or any other famous retailer(Parisian, McRaes, Thalheimers, etc) but I enjoy reading about them and think it would have been awesome to actually go shopping in a downtown full of busy stores!  

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Established Contributor

Re: Sears has 'substantial doubt' that it can survive

Sears at one point did have price matching.  I pricematched several big ticket items.  They were my first credit card. Also my parent's first card.  They were in my 2006- 2008 cld chase so I closed them. By then they closed the Sears store here in small town.  When we did our kitchen I wanted to go with Kennmore but their refrig we liked was 1/4 of an inch to wide.   

Super Contributor

Re: Sears has 'substantial doubt' that it can survive


Backwoods wrote:

Sears at one point did have price matching.  I pricematched several big ticket items.  They were my first credit card. Also my parent's first card.  They were in my 2006- 2008 cld chase so I closed them. By then they closed the Sears store here in small town.  When we did our kitchen I wanted to go with Kennmore but their refrig we liked was 1/4 of an inch to wide.   


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