Just as soon as Sears Holdings (NYSE: SHLD) re-arranged deck chairs on the Titanic, the retailer, headed by hedge-fund guru Eddie Lampert, reported another absolutely dismal quarter Thursday morning. In 2008, shares in Sears Holdings have sunk 36% as the retailer continued to report quarter after quarter of sluggish sales, declining revenue and underinvestment in its retail locations. Lampert's idea of cutting investment in stores to boost actual investment returns has failed, and failed miserably. One thing customers respond to is constant change in their shopping environment, and this is where Sears has failed. Its stores look the exact same as they did four years ago. Even the logo has not changed.
Retailers like Target Corp. (NYSE: TGT) and Wal-Mart Stores, Inc. (NYSE: WMT) apparently know way better how to get seasonal and high-request goods to their stores. They do it in a fashion that turns inventory and makes sales far better than Sears' manages with its current grip on retail. In fact, I am not sure Sears even has a current grip of retail. It's a goldfish (albeit a large one) nearing the top of the fishbowl. With Lampert's track record, one would think he would have made changes a year ago. He has not, and Sears continues to flounder badly. The Wall Street Journal thinks Lampert should go, and go now. What do you think?
Even Lampert's acumen in taking out pieces of an investment and selling for a profit hasn't worked out. What about selling off a good portion of its real estate holdings under the combined Sears/KMart umbrella to help make a profit? Even that time has passed though. Lampert's original prediction for Sears Holdings has failed, and unfortunately he won't be adding this experiment to his resume that includes the years-ago notion that he was the next Warren Buffett.











Reader Comments (Page 1 of 1)
8-29-2008 @ 2:36PM
sss said...
Speak to Todd O'sullivan he loves Lampert.
8-29-2008 @ 2:36PM
Pat said...
When Sears goes back to employee empowerment at the store level, gets away from outsourcing, poor service and improves instock conditions on big ticket items you will see progress in sales and earnings.
8-29-2008 @ 2:37PM
K-duh said...
Stick a fork in Eddie....he's done. "Chop Shop" Eddie has stripped Sears to the bone and like Humpty Dumpty, won't be able to put it back together again. It's time everybody woke up and acknowledges what a bust Eddie is. It's time to kick him to the curb like he kicked all those old-time Sears associates to the curb. Look in the mirror Eddie...no one to blame but yourself now.
8-29-2008 @ 7:01PM
winslow said...
Every time I have gone into a Sears store the service has been abysmal. It is so bad you can only joke about it.
8-30-2008 @ 2:21PM
Jim said...
I sorta go by the S&G method, the louder the screams & groans (S&Gs) the more I want to investigate. Investigating Sears I see what I've always seen... lotsa valuable property and an investor with an outstanding track record. Has the property evaporated and the investor taken leave of his senses? Maybe, but don't bet on it. Lampert's aim may be off, but I very much doubt that the essentials have changed.
9-04-2008 @ 8:13PM
Levi Stubbs said...
I currently work for a Sears Parts & Repair Center in the south, which has been hit by economic recession. Sears has lost its giant retailer status by cutting back on customer service and making improvements to its stores. Instead of putting money into the corporation to fatten upper managements portfolios, the corporation should be putting money into the work force that is the front line to its customers. The customer first motto has gone down the drain. Customers would rather spend less to obtain the same merchandise now. The bad part about that is when they buy merchandise from somewhere else, if something happens whether the item is in warranty or not, the customer is stuck getting it fixed at their own expense. This is the only plus to Sears having a repair system which includes repair technicians that come out to the customers home and repair center systems to take in lawn & garden items (push mowers, weed eaters, chain saws, blowers), sewing machines, hand tools, compressors, generators, table top tools, smaller than 27" televisions (dvd players) and small appliances (microwaves).
9-16-2008 @ 1:54PM
Paladino said...
I don't understand the whining. Since July SHLD has gone in a direct chart from low $70's all the way to $103 high and now still at $99 during the meltdown. Geeze why a POS like this goes up I don't understand but my PUTs are sure taking it in the a$$.
10-15-2008 @ 12:07PM
v. Gregory said...
Lost my job 6 months ago due to time clock stupidity. In 8 years, never got any bonus, lost my pension, cut health care, cut my commisions 6 times,maintenance agreement customer rip offs, to keep my job,allowed my 401 to sink with no concern for me, very poor managers, and very boring nasty Kmart style stores. I was a top salesman there, and you were lucky to have me. Kiss my ass Eddie L.