Skeezix
Senior Member
Link posted on Retail Insider this morning:
The Downward Spiral Of Sears Canada
Seeking Alpha, 20 July 2016
The Downward Spiral Of Sears Canada
Seeking Alpha, 20 July 2016
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Skeezix
Senior Member
Brian Sozzi is now saying that Sears Holdings in the States might not last past 2017. If that's the case, I'm guessing Sears Canada won't likely linger on much past that.
Skeezix
Senior Member
But Sears Canada has a new logo. And they are on their third or fourth attempt at " Sears 2.0".
AlvinofDiaspar
Moderator
The defensiveness of Chris Brathwaite as cited in the article is laughable - "in the middle of a turn around" evidenced by a straight line decline in sales?
Like this one perhaps:
AoD
Bruno Republic
Active Member
That's from 2014, although I don't think much has changed since then.
Skeezix
Senior Member
Oh, cr*p. It was tweeted this morning on Twitter. I must have missed the context and I certainly didn't notice the date.
James
Senior Member
In more recent news, Sears Holdings just posted another loss for their 2nd quarter. Even more troubling than their earnings is that their cash levels have declined from $1.8B a year ago to $276M today.
https://www.thestreet.com/story/13684169/1/sears-second-quarter-was-absolutely-disturbing.html
https://www.thestreet.com/story/13684169/1/sears-second-quarter-was-absolutely-disturbing.html
prosperegal
Senior Member
I LOL'd at the new logo. Either done by a (high school) co-op student or they used something like fiverr.com. Bwahahahahahaha
AlvinofDiaspar
Moderator
Skeezix
Senior Member
So far, the latest iteration of Sears 2.0 is performing precisely as people expected it to.
Skeezix
Senior Member
Further to AoD's post above, Sears' response to its drastic sales decline is to pursue more aggressive cost cutting, above and beyond the significant cost cutting the company is already in the midst of undertaking.
ShonTron
Moderator
It's as if John Tory's City Hall operated a retail division.
Northern Light
Superstar
I don't think anyone believes Sears will be around, at least in anything resembling its current form or under its current ownership, much longer.
I know some folks who work at their head office. Morale is poor to say the least.
There's some sense internally that Sears has 2 salvageable components in Canada, a fairly robust ecommerce business through sears.ca and the rural pick-up locations for orders.
But even those are under invested in and underperforming their potential.
Salvaging them almost certainly would require new leadership/ownership.
***
The retail end, in terms of full-line department stores is all but toast.
The shakeout for many malls, particularly smaller, small town, or B-level properties will be tough if Sears executes and across the board shutdown.
I don't see HBC picking up many locations, as for the most, if the mall is worthwhile, HBC is already there.
There may be the odd property in a better mall where HBC might add Sak's or where Nordstrom or Simons could show interest.
But what do you do w/those lesser properties?
I don't see any logical void filler.
Target might well have been the right fit, had they not fumbled the ball so badly here; but I think the odds on them returning to Canada in the next decade are fairly close to zero.
I know some folks who work at their head office. Morale is poor to say the least.
There's some sense internally that Sears has 2 salvageable components in Canada, a fairly robust ecommerce business through sears.ca and the rural pick-up locations for orders.
But even those are under invested in and underperforming their potential.
Salvaging them almost certainly would require new leadership/ownership.
***
The retail end, in terms of full-line department stores is all but toast.
The shakeout for many malls, particularly smaller, small town, or B-level properties will be tough if Sears executes and across the board shutdown.
I don't see HBC picking up many locations, as for the most, if the mall is worthwhile, HBC is already there.
There may be the odd property in a better mall where HBC might add Sak's or where Nordstrom or Simons could show interest.
But what do you do w/those lesser properties?
I don't see any logical void filler.
Target might well have been the right fit, had they not fumbled the ball so badly here; but I think the odds on them returning to Canada in the next decade are fairly close to zero.
bcx
Active Member
None of this is new. They've tried new leadership several times already. I imagine morale at the company has been low for at least 5 years now. At this point it's simply surprising that Sears Canada has lasted this long.