Sears has 'substantial doubt' that it can survive

[brooklynite]

Source: CNN

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.

It included the language in its annual report while insisting it might still turn things around.

"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," said the statement.

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

[bigworld]

1. Randian philosophy at work

http://www.salon.com/2013/12/10/ayn_rand_loving_ceo_destroys_his_empire_partner/

[fleabiscuit]

5. Good link. Thanks. nt

[Dorn]

9. Randian philosophy at work : anti-christian nut job

I think the best story about Sears is that Lampert it up to compete against itself: home goods vs video games vs woman clothing vs hardware etc. One Mother's day, their weekend sales flyer was devoted to video games.

[niyad]

21. wow--great link. I had been watching the decline of sears through our two local stores for over

a decade--quite frankly, surprised they have lasted this long.

[TexasBushwhacker]

22. Re: Paul Ryan

"Even Rand acolyte Paul Ryan (R-Wis) is now distancing himself, calling his well-documented enthusiasm an “urban legend.”

Seriously? He gave a speech to the Atlas Society that's taped and available on YouTube. He said he made all of his staff and interns read Atlas Shrugged and other Rand gems.

[PoliticAverse]

2. I have no idea how either Sears or Kmart reasonably expects to turn things around.

There seem to be much better shopping options.

[yeoman6987]

4. So true. It's sad but once they got rid of kenmore, I had little use for them.

Now my appliances are From another store.

[Friend or Foe]

3. I blame Trump eom

[bigworld]

8. Sears / KMart have been in decline a LONG time

This is one thing I can't blame on Trump. It's general mismanagement by the company.Anyone who has been in their stores in the past 10 years could see this coming.

[gopiscrap]

12. Nope, just like the repukes did: anything bad that happens while he is in office

is the republicans fault. They bought the farm, they own it!

[Bengus81]

15. I saw it coming in the late 70's.....

Tried to buy a chainsaw using a regular credit card. NOPE...had to be a SEARS card or no dice. Screw em....drove a few miles out of my way and bought elsewhere WITH my CC. Then the silly crap of putting the SEARS name embolden on electronics such as VCR's,receivers etc. Sorry Sears,guys don't want YOUR name staring at them,they want the manufacturers name. Five minutes worth of marketing research would have told you that.

Pfffttt.........Sears is just another huge Corporation who just knew they had the US and the World by the nuts and you'd always come crawling back to them if you got PO'd. Seriously,I can't believe they are still operating.

[Cosmocat]

17. Oh, man

I TRY to support our Sears, but I have never dealt with a retail outlet that made it painfully hard to PAY them.

[brooklynite]

24. Ironically, the Sears card was the first piece of credit a lot of people could get.

[Tanuki]

38. I was able to get one when I was in graduate school, and it was

also good for Budget rent-a-car in those days.

[duhneece]

6. My first job (besides babysitting) was in 1967 in Sears catalog department

I worked in El Paso Texas when I was 16, attended high school and was in the DECA program. Funny, peculiar, nostalgic, sad feelings at this news.

[iluvtennis]

7. Very sad, another American institution may be folding.

[Recursion]

11. Not terribly sad; they're an awful store

The economy changes; that's its job.

[HelenWheels]

19. They used to be a great store

In the 1950's to the 1970's I shopped there often. I purchased appliances, lawn mowers, paint, clothes among other items.

[moonscape]

34. Loved their catalog in the 50's. As a kid, I used to

dog-ear it - toys, clothes. I still remember a (I think) battery-operated card shuffler that I wanted in the worst way!

[Tanuki]

39. We used to make DIY paper dolls by cutting out the ads!

[Mosby]

20. I think a lot of people have very fond memories of sears

When I was a kid it was one of my favorite stores, there really was nothing like it in Phoenix due to it's expansive product offerings, the park central store even had a diner inside.

[SouthernIrish]

28. I.do too

I remember as a child in the 60's and 70's, pouring over the huge Christmas Wish Book every year. We would have it in tatters in just a few days.

[Recursion]

10. Writing was on the wall when they sold Craftsman in January

You don't sell your flagship line unless you're in dire straits.

[Kimchijeon]

13. Downtown Minneapolis Macys closed Sunday...the flagship location, at that.

So this is a reminder, end of an era.

Kind of does make me a little sad and nostalgic.

[Randomthought]

14. That was Dayton's

Not Macy's flagship

[Kimchijeon]

16. Yeah it used to be Dayton's

And it's right next to the flagship Target downtown. Guess I was under the impression the Target/Macy's downtown Mpls were the flagship stores. End of an era for sure.

[Cosmocat]

18. The circle of life

My hometown, the country seat had a classic bustling downtown with all the individually owned stores, I have those little vague memories of my very young years going downtown with family to buy things.

THEN, a mall came in on one side of town and really put a hit on downtown, then one came in on the other side and killed it, dead.

NOW, Box stores and online shopping has killed the first mall and is choking out the second one.

[Boomerproud]

23. Don't care. I have bad recent memories of shopping there.

NO customer service whatsoever. They cut their out throat. Buh Bye.

[durablend]

25. Delay delay delay...

*My* personal opinion, most of us know that Fast Eddie had no plan to reorganize the company and this is just a protracted liquidation of the chain. I get the feeling they pushed it as long as possible until the right political climate was in place where he ends up getting off scot-free (and makes a ton of money in the process) once the chain goes under. You really think Drumpf is going to go after him for anything?

[Worktodo]

37. "Seagull management" to blame?

I'm partial to your view, but what a roundabout way of extracting value. Maybe the REIT turns over a good profit at some point. How long will that take? The mistakes here may just be mismanagement-- an inability to confront key issues and focus on a coherent path forward.

The first key problem for Sears IMHO has been an identity crisis-- is it an appliance store, clothing store, hardware and home improvement? Electronics? Outdoors? Shopping club? High end, discount, or "value"? What's the online component?

The second key problem is execution. What's the in store experience? Where are the registers?

The last time I was in a sears I might have bought something but I was in a hurry, couldn't find the registers, and the Sears "Shop Your Way" signage made that sound like a trudge. I shopped my way to a different store.

[MFM008]

26. Sears and kmart

Staples of my childhood.

[flyingfysh]

27. A new book for sale soon

"The Decline and Fall of Sears"

I haven't yet heard of anyone writing such a book, but it's only a matter of time.

[clementine613]

29. Thanks Trump...

You killed Sears.

[WheelWalker]

30. And the wheel turns...

[bpj62]

31. Craftsman Tools

I have a friend who goes to estate sales and he looks for old Craftsman Tools that were made is the U.S. The quality of thier tools went downhill when they started making them in China. The mall downbthe road from my house has a Sears as one of the original anchor stores. They recently closed the top floor and moved everything down to the lower floor with the exception of the Auto Department which they closed. It is amazing that a little over a hundred years ago Sears was selling complete homes to people and now they can't sell a wrench to anyone. They just never adjusted thier business model. I have a snow thrower that I bought from Sesrs 14 years ago and it still works great.

[nikibatts]

32. Sears used to be the go to place to find quality tools and fixtures and appliances. They were great

with their service, return policies, and customer help. Sad to see them go.

[democratisphere]

33. Sears and Kmart need to set up online operations quickly.

Many Americans prefer to shop online from their home, so if they won't go to the store, bring the store to them. Walmart did it, Sears and Kmart can do it too!

[Danmel]

35. It is very sad

I used to shop there when my kids were young. They had a "kidvantage" program that gave you discounts, which was very helpful when they were growing out of their clothes every few months.
I also used to get their portraits done at the Sears studios.

Sears was the first store to give me a credit card too. I was in graduate school in Boston and Jordan Marsh turned me down, but Sears gave me a credit card. Sad that Sears looks like it's going to join Jordan Marsh.

I feel for their employees. They are the ones who will be hurt the most.

[Freddie]

36. Yes, kids clothes

When my kids were little in the 90's used to get all their clothes at Sears. Great sales (I remember Kidvantage) and nice quality. Used to get most of DH and my clothes there too. Furniture, appliances and of course tools. Even back then word was never use the auto dept as they'd talk you into repairs you don't need.

[wishstar]

40. They have a generous rewards program-practically giving things away

I don't see how they make any profit off customers like me who make the most of their free points. I often get emails with offers such as $10 off a $10 purchase (their offers expire quickly though). When I get a less generous offer, if I wait a week or so, they send another email offering more points with a lower or no required purchase price. I hope they hang on a few more years for customers like me and for their employees.

We have shopped so much at Sears and Kmart over past 2 years to restock all our household bedding, towels and clothing and small kitchen appliances either free or for an incredibly low price. Their store brand clothes are good quality and we have even found some well made and durable Kmart shoes as good as what other stores sell for 4 times as much (Sears has name brands). Online shipping is always free if picked up at a Sears or Kmart. If it takes them more than 5 minutes to find your online ordered merchandise, you get a $5 coupon. My Sears recently re-arranged checkouts to be more convenient.

This announcement seems like a self-fulfilling prophecy because it discourages customers from buying larger Kenmore and Sears appliances if they think their service and warranty programs will disappear.