The end of Sears is 'very near'

[big dog cowboy]

The end of Sears is 'very near'

By Ashley Lutz

Sears has been crashing for the past decade.

The retailer, which also owns Kmart, reported a loss of $454 million in the third quarter. The massive loss is the latest in 10 years of declining same-store sales.

Sears' comparable sales declined 9.6% in the third quarter, while Kmart's declined 7.5%.

Executives blame weak results on warmer-than-usual fall weather that kept consumers from buying items like coats and gloves. They say that the brand is investing in its "Shop Your Way" loyalty program, which offers personalized deals.

But many retail experts believe Sears is denying a darker truth: It is beyond the point of returning to its post as a major US retailer. In fact, it's in danger of not existing at all.

"Sears is like a rudderless ship, devoid of compass heading, manned by a demoralized crew and worth nothing more than the old rotten boards and nails it's made of," Doug Stephens, founder of industry website Retail Prophet and author of "The Retail Revival: Re-Imagining Business for the New Age of Consumerism," told Business Insider.

"If they really care about their retail business, which frankly, is debatable, nothing short of a complete and radical brand and positioning transformation will make any difference," he said. "Even then, I wouldn't hold out hope. The time for bold and decisive action has come and gone."

Read more: http://finance.yahoo.com/news/end-sears-very-near-214605726.html

 

[mattjames2010]

If only Walmart was going with them.

 

[MichaelWinicki]

Sear's has some inherent strength in the market... appliances, tools.

The entire concept of what works for brick & mortar retail has been turned on its head. Certainly the Internet has caused a great deal of that, but folks shopping patterns have changed too.

We're going back to more specialized brick & mortar retail... More like what we had prior to 1962.

Why that date?

'62 was the year all 3 major mass-merchandisers started: Walmart, Kmart and Target.

Folks had more time to shop and found wondering through a 100,000 square-foot store as being entertainment.

Now with all the time constraints we have, it's looked at as a PITA.

Target seems to do better because it's focusing on more upscale products. While Kmart/Sears and Walmart are left to duke it out with the proliferation of Dollar Generals and similar ilk out there.

 

[LittleBoyBlue]

Sear's has some inherent strength in the market... appliances, tools.

The entire concept of what works for brick & mortar retail has been turned on its head. Certainly the Internet has caused a great deal of that, but folks shopping patterns have changed too.

We're going back to more specialized brick & mortar retail... More like what we had prior to 1962.

Why that date?

'62 was the year all 3 major mass-merchandisers started: Walmart, Kmart and Target.

Folks had more time to shop and found wondering through a 100,000 square-foot store as being entertainment.

Now with all the time constraints we have, it's looked at as a PITA.

Target seems to do better because it's focusing on more upscale products. While Kmart/Sears and Walmart are left to duke it out with the proliferation of Dollar Generals and similar ilk out there.

Sears appliances are not competitively priced. Never have been. PC Richard is always cheaper.

Just another case of a brick and mortar failing to adapt to the changes (interwebs).

Newspapers have been losing money since 2000. They are carried $$$ to exist. Also, failures to adapt. Interwebs)

 

[JackOfNoTrades]

A story many find pretty cool is my home is a Craftsman Bungalow. Back in the day, people bought houses through the Sears catalog where they were delivered to the site as a complete kit to be erected with all needed components. Mine is circa 1906, we find it charming and built of solid materials. They really don't build them like they did back in the day. They're more common then you would think. Now that we've lived in one, when we travel we notice them all over but never heard of it before we moving in about 10 years ago. This picture is of the original footprint of my style, there are dozens, but there's been several upgrades over the years by previous owners. Another neat thing is on a couple occasions while doing some of my own upgrades, I found notes stashed behind a wall and another behind trim work from Italian immigrant carpenters who did work back in the day, one from 1922 and another from 1926. I found that fascinating and figured I'd share.

It's a shame to see Sears, which is a retail foundation of our country, fall but at the same time and as they say, a rolling stone gathers no moss.

https://encrypted-tbn3.***NOT-ALLOWED***/images?q=tbn:ANd9GcQCB-8wd343ERNs2b9fE6LVKoGLRZjxq11gEd2skc_Y1qRjg6zdog

 

[LittleBoyBlue]

A story many find pretty cool is my home is a Craftsman Bungalow. Back in the day, people bought houses through the Sears catalog where they were delivered to the site as a complete kit to be erected with all needed components. Mine is circa 1906, we find it charming and built of solid materials. They really don't build them like they did back in the day. They're more common then you would think. Now that we've lived in one, when we travel we notice them all over but never heard of it before we moving in about 10 years ago. This picture is of the original footprint of my style, there are dozens, but there's been several upgrades over the years by previous owners. Another neat thing is on a couple occasions while doing some of my own upgrades, I found notes stashed behind a wall and another behind trim work from Italian immigrant carpenters who did work back in the day, one from 1922 and another from 1926. I found that fascinating and figured I'd share.

It's a shame to see Sears, which is a retail foundation of our country, fall but at the same time and as they say, a rolling stone gathers no moss.

https://encrypted-tbn3.***NOT-ALLOWED***/images?q=tbn:ANd9GcQCB-8wd343ERNs2b9fE6LVKoGLRZjxq11gEd2skc_Y1qRjg6zdog

I don't know if that saying fits here

 

[JackOfNoTrades]

I don't know if that saying fits here

actually I think you're right....I always thought its definition meant something to the effect that you need to keep moving, not be complacent. Ooops lol

 

[LittleBoyBlue]

actually I think you're right....I always thought its definition meant something to the effect that you need to keep moving, not be complacent. Ooops lol

Me and you both... Had to look it up too see exactly what it meant lol

 

[MichaelWinicki]

Sears appliances are not competitively priced. Never have been. PC Richard is always cheaper.

Just another case of a brick and mortar failing to adapt to the changes (interwebs).

Newspapers have been losing money since 2000. They are carried $$$ to exist. Also, failures to adapt. Interwebs)

Two things...

Most of the country's shoppers have no access to PC Richard.

Secondly PC Richard doesn't offer the Kenmore brand which if you follow Consumer Reports is consistently ranked at or near the top for just about every category.

Yes, the Internet has affected brick & mortar retail.

But even now, only $1 out of $10 is being spent online, the rest is going to brick & mortar, so it's still relevant.

 

[MichaelWinicki]

A story many find pretty cool is my home is a Craftsman Bungalow. Back in the day, people bought houses through the Sears catalog where they were delivered to the site as a complete kit to be erected with all needed components. Mine is circa 1906, we find it charming and built of solid materials. They really don't build them like they did back in the day. They're more common then you would think. Now that we've lived in one, when we travel we notice them all over but never heard of it before we moving in about 10 years ago. This picture is of the original footprint of my style, there are dozens, but there's been several upgrades over the years by previous owners. Another neat thing is on a couple occasions while doing some of my own upgrades, I found notes stashed behind a wall and another behind trim work from Italian immigrant carpenters who did work back in the day, one from 1922 and another from 1926. I found that fascinating and figured I'd share.

It's a shame to see Sears, which is a retail foundation of our country, fall but at the same time and as they say, a rolling stone gathers no moss.

https://encrypted-tbn3.***NOT-ALLOWED***/images?q=tbn:ANd9GcQCB-8wd343ERNs2b9fE6LVKoGLRZjxq11gEd2skc_Y1qRjg6zdog

Good story!

Recently I picked up some N scale "Sear's Bungalow" houses for my model railroad.

 

[YosemiteSam]

This is all about not changing with technology. Just like the music and movie industry how they were fighting tooth and nail to not allow streaming music, but it was inevitable. Finally they are embracing it, but it's too late for the likes of Sears, K-Mart, JC Pennys, etc.

Walmart on the other hand did embrace online and they are still doing well.

 

[YosemiteSam]

Two things...

Most of the country's shoppers have no access to PC Richard.

Secondly PC Richard doesn't offer the Kenmore brand which if you follow Consumer Reports is consistently ranked at or near the top for just about every category.

Yes, the Internet has affected brick & mortar retail.

But even now, only $1 out of $10 is being spent online, the rest is going to brick & mortar, so it's still relevant.

I believe most of this is powered by grocery shopping. Subtract that and online sales are a much much larger portion of the total sales. I'm a single guy living alone and I still average about $100 per week at the grocery store or around $400-$450/month. For a lot of people and families, groceries account for a majority of their spending each month that isn't directly related to some sort of loan/lease/mortgage.

Amazon is making it where you can order consumables easily with things like the Echo. Soon, I think even the grocery stores are going to start feeling the pinch of the Internet revolution.

I buy a lot of wine and I spend more ordering wine online than i do in the local liquor stores. The reason being is I have a much larger selection online than any wine stores in the area can provide. Not to mention, I can get "exactly" what I'm looking for online.

 

[dreghorn2]

Good story!

Recently I picked up some N scale "Sear's Bungalow" houses for my model railroad.

Mike, share a picture of your railroad with us sometime, i'm sure many would like to see it.

 

[LittleBoyBlue]

Two things...

Most of the country's shoppers have no access to PC Richard.

Secondly PC Richard doesn't offer the Kenmore brand which if you follow Consumer Reports is consistently ranked at or near the top for just about every category.

Yes, the Internet has affected brick & mortar retail.

But even now, only $1 out of $10 is being spent online, the rest is going to brick & mortar, so it's still relevant.

Ok. Two more things ;-)

But still... Other stores are cheaper than Sears.... By a significant amount.

Kenmore. Understood but there are a collective set of brands that are mostly the same parts as each other. Those as a collective whole have hurt Sears too.


Relevant, but that little 10% you refer to is bottom line life or death.

 

[Vtwin]

My step-father is in the furniture and appliance business. Second generation, small town operation. He has been running the show since around 1980. In order to compete the business model has changed from a high margin low volume to a low margin high volume approach. Sears is most likely the biggest competitor. There are two small Sears and one large within 30 miles. The business still does well but price matching is a must and you need to buy and sell a lot more units to be profitable. Customer service is also essential to competing with the big dogs.

A large percentage of my fairly extensive hand tools collection has come from Sears over the last 35 years. It is the go-to place tools around here. I will miss that.

 

[iceberg]

Sear's has some inherent strength in the market... appliances, tools.

The entire concept of what works for brick & mortar retail has been turned on its head. Certainly the Internet has caused a great deal of that, but folks shopping patterns have changed too.

We're going back to more specialized brick & mortar retail... More like what we had prior to 1962.

Why that date?

'62 was the year all 3 major mass-merchandisers started: Walmart, Kmart and Target.

Folks had more time to shop and found wondering through a 100,000 square-foot store as being entertainment.

Now with all the time constraints we have, it's looked at as a PITA.

Target seems to do better because it's focusing on more upscale products. While Kmart/Sears and Walmart are left to duke it out with the proliferation of Dollar Generals and similar ilk out there.

nebraska furniture mart in the colony, tx.

they have restaurants and hotels spinning up around this juggernaut brick n motar place and all you do is to go 1 place to get just about everything. clothes are not on the list but just about all else is.

i don't mind buying online and have led the movement for more than a decade and overnight amazon prime stuff weekly cause i can. HOWEVER, this is meaning that most bnr stores left these days keep a minimal stock so if you want to put your hands on something first, good luck anymore.

 

[DallasEast]

It's funny. I remember back in 1989 when Sears was still on top of the retail market but feeling the heat from competitors. One day the company advertised it would drastically slash the prices of its entire inventory. So it closed ALL of its stores. I thought to myself, "Walmart better watch out!" Every Sears store remained closed for about two days supposedly repricing all their merchandise creating huge deals for customers. The stores reopened early in the evening. I walked into the local store I had always shopped in that same evening, looked around, and walked out about ten minutes later. The so-called drastic price cuts were complete utter jokes. The biggest retail customer retention hoax, intentional or unintentional, that I have ever witnessed. That company doomed itself. It would be hilarious if the company's stupidity wasn't so sad.

 

[Seven]

Sears appliances are not competitively priced. Never have been. PC Richard is always cheaper.

Just another case of a brick and mortar failing to adapt to the changes (interwebs).

Newspapers have been losing money since 2000. They are carried $$$ to exist. Also, failures to adapt. Interwebs)

I will never purchase another Kenmore appliance. EVER.

Repaired my dryer 4 times, washer is clunking along, Both are only 7 years old and HE models. Designed as heavy duty and not nearly used as such. The microwave (Brand new).....that's another nightmare of a "service" MFG warranty story and two ice makers ( 5 and 2 years.) that sucked.

 

[MichaelWinicki]

Ok. Two more things ;-)

But still... Other stores are cheaper than Sears.... By a significant amount.

Kenmore. Understood but there are a collective set of brands that are mostly the same parts as each other. Those as a collective whole have hurt Sears too.


Relevant, but that little 10% you refer to is bottom line life or death.

I agree with you that there are many low-priced competitors out there.

But there are many that are comfortable with the Kenmore name and will gladly pay a few dollars more for that.

In a reduced footprint and a reduced product line, I can see a Sears succeeding– but trying to sell everything from dogfood to ladies underwear... not so much.

 

[MichaelWinicki]

It's funny. I remember back in 1989 when Sears was still on top of the retail market but feeling the heat from competitors. One day the company advertised it would drastically slash the prices of its entire inventory. So it closed ALL of its stores. I thought to myself, "Walmart better watch out!" Every Sears store remained closed for about two days supposedly repricing all their merchandise creating huge deals for customers. The stores reopened early in the evening. I walked into the local store I had always shopped in that same evening, looked around, and walked out about ten minutes later. The so-called drastic price cuts were complete utter jokes. The biggest retail customer retention hoax, intentional or unintentional, that I have ever witnessed. That company doomed itself. It would be hilarious if the company's stupidity wasn't so sad.

Lots of stores play games with retail & sale pricing.