Cramer on BloggingStocks: SHLD, WMT have the same problem

Jim, everything you say rings true. Nevertheless, business decisions are made by real people. That impelled me to wonder who was making the decisions at Sears. Thursday’s NewsVisual article on Sears Holding Corp’s Board of Directors http://www.newsvisual.com/newsvisual/2007/11/did-inexperienc.html#more examines the members’ level of corporate connections, and it implies that they fall short in that category. They are also relatively young, at least if you compare their average age to other corporate boards. So I wonder about the human factor.

Probably selling real estate is an option but at what price? Who is the buyer? another retailer? another mall will abandoned stores? We are going back to the same vicious circle. Operational discipline maybe is the answer or much better a cost analysis. That is what SHLD has not found yet. I have been seeing advertising about 5 minutes guarantee or 5 dollar. I am just wondering how much money is spent on that ( aprox. $864,000 per month/ 900 stores, 6 coupons daily on 30 days). The average retailer does not put times on pick up merchandise and it takes around 10 minutes to have the merchandise out for the customer. Go to any Sears store and ask for a reduction because the box has dust on top, for sure if you push enough you will have a reduction. The last thing that I found new signing at the Sears store for the in vehicle pick up. You call from your car and they bring you the merchandise. How much money has been spent on signing, phone systems and changes in the system to make this work. In the name of customer service SHLD is wasting money instead of providing just that "a good customer service": friendly associates, keeping promises, offering clean stores and a good price/quality relation "priceless".

You people in the market are always complaining. Let the system run it's course. We are suppose to be running under the free enterprise system not buying out the Fed so they can shore up the money changers that run the thing. As soon as the dumb mistakes catch up with wall street they all cry for the Fed to bail them out. Just print more money and everything will be just great. We did'nt learn a thing from from the previous Fed chief who gave away free money.

"In a real retrenchment, they should be closing more stores than they are opening."

Here here. Especially in the case of Wal-Mart. Not only is there square footage glut, there are also hundreds of mismanagement problems at the fundamental level. Whether it is how their Chinese suppliers, or the way they treat employees, and even their public image, Wal-Mart needs to hold on the new stores and better manage the ones they have.

Reminds me of what my mom used to say when I wanted more: "you don't take care of the toys you have, why would I let you get more?" (or something like that :-)

i just want to thank cramer for pumping shld all the way down to 100, and now dumping it. i hope you are satisfied.

Cramer,

This stock finally completed making a bottom. Nice W made and the stock is ready to trend higher. There are over 40 points to the upside waiting for you in 2008, don't miss the boat.

D Lesh