Sears is now a penny stock

[Willers]

Quote:

Originally Posted by braumeister Not necessarily. Sears Cost Eddie Lampert's Hedge Fund and Net Worth Billions | Fortune

Maybe, but he may more than make up for it with the Seritage opportunities. Buffett certainly thinks it has promise.

[marko]

Many years ago I had an old(er) Craftsman socket wrench; a really good one. The ratchet broke. I brought it back to Sears expecting their lifetime guarantee to give me a new one.

The guy there gave me so much crap I couldn't believe it. "No, way! I'll give you one of these cheaper ones but if you want a one-for-one replacement for this expensive one, you're dreaming!". Then he walked away from me!

Last time I went to Sears.

[jazz4cash]

Quote:

Originally Posted by pb4uski When I got out of college in 1977 I lived in a small city of about 30,000 people.... for shopping, Sears was the best thing going in terms of variety and price... I had a Sears card from then until a couple years ago. Too bad.

When I was driving around the countryside for work I loved to take the backroads and drive through towns such as yours. Driving down main street it was common too see a once grand but now dilapidated Sears in a prominent location right near the courthouse and the county offices. A glimpse of the past. You could easily imagine it was once the proud hub of retail business for the town.

[Mr._Graybeard]

I stumbled across this story from last summer reporting that Sears was closing its "Six Corners" store, its last store in Chicago.

I remember visiting that store occasionally as a boy with my DM. Some distinct recollections include the Hellman's deli in the basement and the rooftop parking lot. It was certainly the dominant retail feature in a bustling commercial area.

One summer in the early '60s my DD's affluent uncle visited Chicago with his family and took me along shopping at the Big Store downtown. The store clerks, including some (to me) middle-aged men, were dressed like bank tellers.

Another adult relative worked for Sears; the general attitude I absorbed was that his job all but guaranteed him a stable middle-class life. I have no idea what he did -- he was probably a clerk of some sort -- but I know that working for Sears back then was something special.

[bobandsherry]

Remember when Sears planned to be a major financial services firm owned Allstate and then in the 80's expanded by acquiring Dean Witter, Coldwell Banker and starting up the new Discover card? They also did joint venture and founded Prodigy (how many recall that?). Along the way accumulated huge real estate holdings, including Sears Tower in Chicago.

Sears was truly the "Amazon" of that time with many stores to either buy direct and with huge catalog sales for pickup and then offering a wide array of services. They created Kenmore, Diehard and Craftsman brand, that used to stand for quality. I recall that many thought that Sears would be able to own a relationship from birth to death, going to crush everyone and everything.

So how do you go from that to the embarrassment they are today? Actually, they were dead back in the 90's, so their flame burned out in just over a few decades. Soon after KMart acquired them in 2004 (that was truly the embarrassment). Hard to believe that KMart after being BK could acquire a company like Sears that used to be the powerhouse of the of the 80's.

RIP

[travelover]

Quote:

Originally Posted by marko Many years ago I had an old(er) Craftsman socket wrench; a really good one. The ratchet broke. I brought it back to Sears expecting their lifetime guarantee to give me a new one. The guy there gave me so much crap I couldn't believe it. "No, way! I'll give you one of these cheaper ones but if you want a one-for-one replacement for this expensive one, you're dreaming!". Then he walked away from me! Last time I went to Sears.

Rest easy, I got your revenge. Quite a few years back, I realized Sears would soon be no more so I gathered up all my screwdrivers that were dull, wrenches that were rusty or bent and exchanged them all for new tools. No, it was not without a fight, but I was in a pissy mode anyway and took along a printed page from their website that said "satisfaction guaranteed", and was emphatic that I was not satisfied. In retrospect, probably not fair, but after reading your post I feel better.

[jazz4cash]

Quote:

Originally Posted by Mr._Graybeard I stumbled across this story from last summer reporting that Sears was closing its "Six Corners" store, its last store in Chicago. I remember visiting that store occasionally as a boy with my DM. Some distinct recollections include the Hellman's deli in the basement and the rooftop parking lot. It was certainly the dominant retail feature in a bustling commercial area. One summer in the early '60s my DD's affluent uncle visited Chicago with his family and took me along shopping at the Big Store downtown. The store clerks, including some (to me) middle-aged men, were dressed like bank tellers. Another adult relative worked for Sears; the general attitude I absorbed was that his job all but guaranteed him a stable middle-class life. I have no idea what he did -- he was probably a clerk of some sort -- but I know that working for Sears back then was something special.

Thanks for the link. I knew (but forgot) about most of the brands affiliated with Sears, but I had no idea about WLS radio. I listen to Bob Brinker on WLS . I also remembered my first home purchased in 1982 was a Sears kit home. I had no idea when I purchased it.

[imoldernu]

Quote:

Originally Posted by bobandsherry Remember when Sears planned to be a major financial services firm owned Allstate and then in the 80's expanded by acquiring Dean Witter, Coldwell Banker and starting up the new Discover card? They also did joint venture and founded Prodigy (how many recall that?). Along the way accumulated huge real estate holdings, including Sears Tower in Chicago. Sears was truly the "Amazon" of that time with many stores to either buy direct and with huge catalog sales for pickup and then offering a wide array of services. They created Kenmore, Diehard and Craftsman brand, that used to stand for quality. I recall that many thought that Sears would be able to own a relationship from birth to death, going to crush everyone and everything. So how do you go from that to the embarrassment they are today? Actually, they were dead back in the 90's, so their flame burned out in just over a few decades. Soon after KMart acquired them in 2004 (that was truly the embarrassment). Hard to believe that KMart after being BK could acquire a company like Sears that used to be the powerhouse of the of the 80's. RIP

Well said...

I worked for and lived through the earlier years, as I became a Sears Catalog Store Manager after graduating from college. A proud experience at that time... from 1958 to 1966. Front edge of everything from merchandise to public relations, to employee benefits and everything that made the company number 1. It was the "Walmart" of the day... price, value and service.

My thinking is that they assumed they owned the market, and made an ill conceived move to upgrade... but mostly with prices... profit. Walmart began in the 1950's but grew through the '60's and 70's... with the kind of "new" that we see in Amazon today.

IMHO... Sears became overconfident and stodgy. I'd credit Sam Walton with the vision to outdistance Sears... Satisfy a new type of customer, and new approach with a newer type in-store, efficient management structure, while
Sears held with an outdated 1940's working staff and management plan

In 1966, I moved from Sears Management to Montgomery Ward, with an opportunity to see both companies struggle with profitability.

I think the same type of death spiral occurred with both companies... Sears joining with Kmart, and Mobil buying Wards. A mixed confrontational management battle fed by egoes... with bad results.

In my own case, sitting at the table with Wards/Mobil management battles, a successful energy company trying to use their "oil" strategy to run a retail company. A disaster from the outset.

My last position was Special Project Manager to close thousands of catalog stores and phone units. The retail stores were still open. My office was on the same floor as the retail store realty offices. The plan, while not stated, was to manage profitability by doing exactly what Sears is doing today. Closing those stores that were owned... in most cases, without regard to the store profitability.

In all of the articles I have read so far, it seems that the attention to closing stores has to do with passing the value on to realty based corporations... however that works with hedge funds, Buffet or anything in between. The missing link that doesn't get into the discussion is that Sears, like Wards, doesn't didn't own most of the real estate, but leased it, with some leases extending to 20 years. Buying out the leases is likely included in what the financial articles loosely call "selling". Yes... a small point perhaps, but one of those factors that gets lost when the market becomes unstable.

Better to look at the status of the Malls where Sears or Kmart are located. Bowing out of a 120K lease doesn't mean that the transferred value is backed by the true value.

Think of it this way... Back in the Freddie Fannie days, transferring a 300K mortgage didn't do much to reduce the National Debt.

Whether Sears as a penny stock or part of Lampert's ESL Investments, investing at this point? Takes a lot of nerve.

[UnrealizedPotential]

One thing Target did was get in the grocery business. I remember some years back, the CEO at the time said it just made sense. Kmart kind of did that, but I think their business model was already broken. I don't remember Sears ever selling many groceries. I remember when I was a teenager in the 80's Sears had a nut counter and sold candy, but I don't remember them selling groceries.


Groceries may not bring much profit, but they bring foot traffic, and Sears has clearly lacked that for years. I'm no expert, but it seems to me Sears needed to transition away from tools and bring in food and maybe a restaurant in there or something that would create foot traffic into the stores. They never did that. I think they hung onto a broken model and are going down with it.


But I have not been inside a Sears in years. I'm afraid even if they did make such a move, it will probably be too little, too late.

[samclem]

I'll miss what Sears used to be.

Does anyone remember when Sears stores had a popcorn machine? I don't remember if they sold popcorn or gave it away, but it smelled great. My parents always got me a box when we went to Sears.


My dad worked for Sears in one of his first jobs after high school. He sold sewing machines. He told me he got into trouble for selling one--the low-priced machine advertised in the newspaper ad every week. They only had one in the store, and all the sales folks were under strict orders not to sell it. It was there only so you could show the customers the much better machines that were available "for only slightly more." Well, one lady would not be sold anything else, and yes, she was willing to take the floor model, and demanded it. He tried everything, but had to sell it.


I have liked and gotten good service from their 19.2V cordless tools. They aren't professional grade, but they have been good quality and available at good prices when on sale. I may need to get some replacement batteries while they are still available.


I visited a local Sears that is closing, it was a sad sight. With a more agile and competent management and a willingness to make needed cuts earlier to get lean, Sears might have made it. They aren't gone yet, but they are going.

[Independent]

My dad worked for Sears. So the employee discount was a big deal in our house. Yes, the Christmas catalog is a good memory.

He had no pension, but he did have a profit sharing plan. He retired around 1972. He was hoping to work until he had 1,000 shares valued at $100 each (about $600 in 2018 dollars). So, I see the $1/share in that light.

Already in 1972, he thought the company was headed down. He wanted to sell all his Sears stock when he retired, but the tax consequences seemed too severe. He decided to sell 100 shares per year for 10 years to control his tax bracket.

Some years later, he said that plan didn't work so well. The drop in the stock value outran his tax savings.

I've still got a jigsaw of his, and a photo of him demonstrating it at the Michigan State Fair sometime in the 1940s. And, a craftsman table saw and electric drill. I'll bet they were deeply discounted models when he bought them. Yes, all three still work.

[jazz4cash]

I don’t think anyone understands what happened to Sears. They tried a lot of things but none of them worked. They created brands that live on as the parent company dies. I remember the popcorn and hotdogs (before Costco). What I remember most was the donut maker like Kristy Kreme has. Being able to drop your car off and shop while the work is done.

[jazz4cash]

I see they are now promoting leasing for kitchen appliances and lawn tractors so it’s like a rent to own sales model.

[audreyh1]

Quote:

Originally Posted by samclem I'll miss what Sears used to be. Does anyone remember when Sears stores had a popcorn machine? I don't remember if they sold popcorn or gave it away, but it smelled great. My parents always got me a box when we went to Sears.

I thought it was K-mart that had the popcorn machine.

[Scrapr]

I drove truck for a contractor for Sears in the early 80's. I would deliver to the catalog stores in all those small towns. Leave the FDC about 1:00 am to get everybody their product. The garden tractors were a bear to get off the truck at 0 dark thirty and no one around & no loading dock. LOL You all my have loved those catalogs but somebody had to pick em up off the floor of the shipping container and get em in a Sears truck. Yep, not palletized. Ah, well built me some character. Some fine folks there both at the FDC & at the stores

[robnplunder]

My neighbor's Sears closed last month. Not that we were frequenting it of late but we were still sad to see it go. The problem is, there are other big department stores in the same mall which do not have enough customers. Heck, the shopping mall itself seems to be struggling with a lot of empty stores. This is expected given that most of us are now buying stuff on-line.

[brucethebroker]

Quote:

Originally Posted by marko Many years ago I had an old(er) Craftsman socket wrench; a really good one. The ratchet broke. I brought it back to Sears expecting their lifetime guarantee to give me a new one. The guy there gave me so much crap I couldn't believe it. "No, way! I'll give you one of these cheaper ones but if you want a one-for-one replacement for this expensive one, you're dreaming!". Then he walked away from me! Last time I went to Sears.

I have had no problems with like kind exchanges (mostly screwdrivers, to be fair), and did have a broken ratchet (forward/reverse switch) that they fixed for free. Maybe a bad ee in your experience part?

(Received my Craftsman tool box filled with tools for Christmas from Mom and Dad 50+ years ago. Did the same for my sons 25+ years ago. I would be hard pressed to remember most any other Christmas present, but still remember unwrapping that tool box!)

[brucethebroker]

Quote:

Originally Posted by UnrealizedPotential One thing Target did was get in the grocery business. I remember some years back, the CEO at the time said it just made sense. Kmart kind of did that, but I think their business model was already broken.

Our local K-Mart did the grocery thing, but it was a joke. Only a couple of aisles of food-about 1/2 an aisle of refrigerated units (milk, eggs, cheese, ice cream)-some cereal, bread and peanut butter, etc. Even Dollar General had a better selection.

[bclover]

Quote:

Originally Posted by Walt34 Sad. When I was growing up the Sears Christmas catalog was one all three of us kids drooled over. Later on the tool catalog was the one I wanted to order "one of everything" from. I suppose I can throw out my Craftsman Club card...

lol, great memory. same for me, my siblings and I would circle all the toys we wanted for Christmas.

Very sad.

[HGTVfan]

Quote:

Originally Posted by bobandsherry When the Chairman of Sears has a vested interest in buying the Sears properties at a bargain price, there's more incentive for him to drive the company into the hole and to work to salvage it. To avoid bankruptcy, Sears CEO proposes selling off real estate. The retailer has tried that move before. - Chicago Tribune And https://www.usatoday.com/story/money...pert/99487518/

Totally agree.

Our Sears closed a year ago. Really sad.