Shrinking of Sears

[marshd1000]

Sears is shrinking even more!

http://www.msn.com/en-us/money/inside-t ... =ansCNBC11

[Alpha8472]

It is only a matter of when, and not if. Sears is quietly closing down stores while continuing this charade that they are still running a viable business.

The Sears in downtown Oakland closed quietly over the summer. The store looked like a barren wasteland with empty shelves and dirtiness everywhere even when it was still open. This department store was a sad place as Sears. It used to be the Capwells Flagship department store. This grand building was a marvel to behold after it was renovated after the 1989 earthquake. Emporium spent tons of money to restore the building to its grandeur. Sears moved in after Emporium closed, but things went downhill several years later.

Sears is shrewd and has already made secret deals to turn the building into offices for rich tech companies. A downtown department store in Oakland cannot succeed. However, tech companies are flocking to Oakland due to cheaper rents than San Francisco just across San Francisco Bay. The department store sits on top of a subway station and this location is perfect for attracting rich tenants who want to rent office space.

Sears is cashing in on the real estate of their closed stores. Those stores can't make a profit while open, but as real estate it will bring in tons of money.

[reymann]

we'll see after christmas is sears will survive, go private, or liquidate after christmas. i think the sears hometown stores may be the first to go

[Alpha8472]

Sears Hometown and Outlet Stores separated from Sears in 2012. The Hometown and Outlet stores are a totally separate company. If the big Sears goes out of business, the Hometown and Outlet stores will still be around.

I think the Hometown and Outlet stores will probably outlive the big Sears. People are frugal these days and the Outlet stores seem like a much better fit. The Hometown company also has some Sears Appliance and Hardware stores. These actually can compete with Ace Hardware to some extent and even if the original Sears dies there will still be Sears branded appliances and tools.

I think that the Sears name will survive in some fashion. It is just that the huge department stores of yesteryear will be long gone.

[storewanderer]

I think the Sears Hometown and Outlet Stores are what Sears Corporate would like to see survive. Being that those are franchise operations, where Sears typically provides the inventory to the operator on a consignment basis, controls what the operator can and cannot sell, controls what the operator can and cannot special order, and basically does many of the things that have turned everyday customers away from Sears, to those franchise operators, but in doing so, Sears does not have to deal with the costs of running a store. The franchise operator gets to deal with all that, and serve as the "face" of Sears to the upset customers.

With all of that said given Sears failing formula, without major changes, I doubt even these small franchise format stores will survive. Customers are tired of Sears tactics and so are the franchise operators of those little stores. Just do a search on that to see what I am talking about.

I think Sears has some good things going for itself in its brands and merchandise, but the store operations and product support just ruin all of the positives. I expect it to all fold.

[reymann]

sears will probably spin off kmart in 2015 to private equity and close the unprofitable stores for real estate