"It's Too Late to Save Sears"

Joined: 25 Nov 2007 Posts: 7

http://finance.yahoo.com/tech-ticker/article/320517/It%27s-Too-Late-to-Save-Sears-Matthews-Says?tickers=shld,azo,wmt,cost,dia,spy,XRT

Joined: 08 Jul 2003 Posts: 6309

Did I read right over a 1000 comments ?

This guy and others all harp on the samethings like hire a retail exec. Ok , I can deal with that but shouldn't an experienced retail workforce count as well. The problem with Sears especially is that it is much more big ticket/complex merchandise that demands a higher level of service than Walmart.

See Eddie gave himself a double whammy first by eliminating or forcing out a weak fetail management team. Yeah they were dog crap but they were better than Bruce or Aylwin.

If you want to delegate fine but that means you sure as heck better have someone at the store level that knows what they are doing. But again mr ed forces out those who he could delegate to.

The hedgefund guy said mr ed basically downsized Auto Zone which worked there. He's speculating but believes mr ed hoped he could've gotten the same results at Sears/Kmart. But Auto Zone is a specialty store,a mechanic or DIYer will sell themselves because it tends to be an emergency or urgent situation. Sears/Kmart are different in the variety merchandise and it's not an emergency. The customer has time/will go some where else if need be.

Basically mr ed still doesn't understand retail/Sears. Beyond the scope and range of his abilities.

Joined: 18 Aug 2008 Posts: 95 Location: Massachusetts

He's right that Ed Lampert doesn't understand retail. Clearly, this critic/expert/whateve doesn't either. I've never set foot in a clean Walmart.

Joined: 09 Dec 2008 Posts: 72

WalMart? Clean? You gotta be kidding me. Smile

Joined: 08 Jul 2003 Posts: 6309

In the full interview the guy even talks about how Eddie succeeded at Auto Zone( also heard the opposite) . He says the average mechanic doesn't care about a clean store and just wants his part or tool. He says Sears and other retailers do have to worry about appearance(how come this hedgefund realizes this). Ironically he pointed how much Sears put back into the stores as compared to Walmart.

I don't think Eddie or this guy quite get retailing or the consumer although I must admit this guy is light years beyond the Eddie/the ESL crew . I don't either one has stepped foot in a Walmart recently either.

Walmart also has price as does Auto Zone in many cases. Sears does not and has more or less admitted they don't want to be a discounter. But that puts the onus on them to provide superior service and experience if they are not going to deal in price. Price speaks for itself especially when it's upfront and not in the form of a price match.

Joined: 06 Jul 2003 Posts: 8380 Location: Central CA

People keep bashing Walmart in this forum as if whether or not it was clean or its customers are strictly low class (which isn't true by the way) had any bearing on what happens to Sears. I suspect it makes them feel better but the simple fact is that Walmart (and some of the other major retailers) have something that Sears doesn't.

That would be customers and I suspect more than a few of them used to be Sears customers.

Joined: 31 Jan 2008 Posts: 338

Joined: 28 Apr 2005 Posts: 2175

The Walmart's in my area always seem to be clean and in generally good shape. Sometimes the stock is a little messed up , but that's understandable given the huge volume of customers. They don't always carry what I am looking for, but I can't ever remember finding an item they carry out of stock. I'm amazed they are able to do such a good job, given the questionable treatment of employees. Personalized customer service is a different story. I don't expect much "help" out of the Walmart employees.

Overall it's hard to argue with success. Walmart has it's faults but it's still growing sales even in the midst of the recession. Since the company is successful, they aren't going to make radical changes in strategy. They have to come up with puff projects and stories just to keep Wall Street happy. Sears, on the other hand, is dying a rapid death and still doesn't see the need to do anything more substantive than polishing the hooks, and beating up employees for using the wrong kind of tape.

Joined: 06 Jul 2003 Posts: 8380 Location: Central CA

Exactly. As for the part of the Walmart operation that the customer is exposed to... we have two Walmarts in my immediate area... the one here is your run of the mill Walmart that pretty much epitomizes the low opinion a lot of people working elsewhere try to assign to all of them.

The one a few miles down the road, a Superstore type, is clean, polished and the sales staff jumps through hoops to be helpful without being intrusive. It's all a manner of the management in the individual stores and the extent to which said management is able to motivate their downtrodden employees... some do better than others.

And the exact same thing is true of Sears.

Joined: 08 Jul 2003 Posts: 6309

The AutoZone Example : the hedgefund guy Jeff Matthews cited the AutoZone results Eddie got with stock price and sales over the last several years. I gave it a quick check most of their numbers are showing increases except for sales per store and that's because the number of stores went up. AutoZone also emphasizes training of employees.

One thing the guy speculated on was the eddie might be thinking he could do what he did at AZ. One of those things was/is 'bring in' stuff to sell; don't sell 'your own' stuff. I think what he means is that AZ is pushing ' pay on scan ' or AZ doesn't buy it until it's sold to the customer. That's tougher at Sears with all the big ticket. I think that's one reason Whirlpool has been providing less and less appliances for Kenmore. They probably want payment upfront.

I also noticed AZ has reduced their tax bill while increasing sales ?

And I'm not quite sure of the phrase but AZ's ' accounts payable to inventory ration ' has steadily increased. I think it's because of the ' pay on scan ' push.

Joined: 06 Jul 2003 Posts: 8380 Location: Central CA

I know that when Balter was still pumping SHC, one of the things he cited that Eddie was doing "right" was delaying payments to vendors and creditors. I suppose it was right for Eddie but it sure as hell screwed those vendors and creditors who have their own obligations to meet and to whom Sears isn't the butt crack the sun rises and sets in.

On that note, I suspect you're right about Whirlpool.

Joined: 06 Sep 2005 Posts: 42 Location: In the middle

Mr. Mathews said the stores look as bad as they did 5 years ago. I disagree. Our back offices are clean and bright. And now that the metal file cabinets and tape dispensers are gone, I think we will see a big turnaround, someday. These guys are clueless. Dunder-Mifflin is run better!

Joined: 18 Aug 2008 Posts: 95 Location: Massachusetts

Did you watch the video? The guy said the reason Sears is failing is that Wal-Mart is clean, which is rediculous. Jealousy my foot.

Wal-mart isn't even on the radar as far as Sears goes. They have no market share in what Sears makes its profit on, white goods and tools. Home Depot and Lowes and to some degree the inability to dent Best Buy's dominance in HE are the problems.

Joined: 24 Feb 2005 Posts: 556

Except for the "loss leaders" I can get better prices with my Hometown merchants and I may pay a little more in some instances that I would pay at Wal Mart for stuff., but the quality is better with my hometown, mom and pop guys. Price is not always the factor when your buying stuff. QUALITY is and customer service should be.

When you pay a dollar at Wal mart, you get a dollar throw away thing. I choose not to pay that dollar, if I can pay a $1.50 and not have to buy the dang thing again for a long time.

There's your value. Beleive it or not I have things from Sears that have lasted 20 yrs. Good quality merchandise that stood the test of time. I'm wearing sweats right now that I bought 24 yrs ago. Russel to be exact. The name wore off but the quality is there. Heck some stuff the tag in the back has faded and worn., but still comfortable clothes.

Clothes I bought from Wal Mart never last.

Maybe I'm unique, I take care of my stuff and it lasts a long time, if I choose carefully when I purchase. I do this because basically I don't like to buy things twice if I don't have to. I rather spend my money on something else I need, not spend it again on something I already have/had.

I had a good pair of shoes that I bought for work that I finally had to throw away last yr because they broke and the shoe repair guy couldn't fix them. I wore them for 4 yrs., everyday on that hard floor at Sears. I paid $125 for that investment and they were comfortable. Very comfortable. I literally wore them out. I'm now on the hunt for a new pair of comfortable shoes and I will pay good money for quality. I would have probably bought at least 2 pair a yr at Wal Mart had I shopped there and they would have wore out in a heartbeat., and still not been as comfortable. A well made pair of shoes is a God send. That's why I'm still hunting. I've seriously considered going to the major city near me and talking to the guy that makes shoes. I might then find what I want.

Joined: 04 Jul 2003 Posts: 517

Joined: 04 Mar 2008 Posts: 218

Put "Sears" "closing" and " Kim Freely" in the search engine of your choice on your computer.

If that doesn't give you a clear indication of whats happening to this company, you are beyond hope.

Joined: 31 Jan 2008 Posts: 338

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