LiberaIs, if America is doing so well under Obama, why is Sears closing hundreds of their stores?
Sears closing more stores as holiday sales slide
(Reuters) - Sears Holdings Corp will close as many as 120 of its Kmart and Sears discount and department stores after its holiday sales slumped, sending its shares sliding more than 27 percent to their lowest level in three years.
The retailer, which is controlled by its chairman, the hedge fund manager Edward Lampert, has seen sales decline every year since the $11 billion merger of the two chains in 2005, and likely faces further closings to cut expenses, preserve cash and push back against rivals such as Wal-Mart Stores Inc and Amazon.com Inc, analysts said.
Sears also disclosed on Tuesday that it tapped its credit line to borrow cash and forecast that fourth-quarter earnings would fall by more than half.
- justaLv 79 years agoFavorite Answer
Because they let their stores go downhill, fired so many workers there was no customer service.
And they over expanded and cut their catalog out.
All stupid management decisions, and they are doing again with this.
At one time getting that catalog kept you aware of what was in the store, what was new and you got the urge to buy. So they saved that and now you don't look at Sears, you go to the mall, where you can go anywhere, for anything. Sears didn't invest in itself, it wanted to maximize its return to stockholders, they let themselves go and taking over K-mart didn't help either of them.
Another common management problem was paying too much for acquisitions.
Its not unions, its not the economy, and its certainly not Obama.
Its lousy managment.
Its greedy stockholders that would rather the chain go under than update.
- 9 years ago
It has little to do with today's economy. If you remember under George Bush's failed economic plan, to which he himself admitted fault (See Oprah interview with GW Bush when she asked what his biggest regret of his Presidency was and he replied "Missing all of the signs of the failing economy") Sears themselves are to blame for the closings.
Sears bought or merged with KMart after the bankruptcy of KMart. Sears dropped their catalog division, not realizing how much advertising a catalog created nor did they take into account the number of people who shopped at home, and then went to a store and picked up the item. They only saw sales from the catalog division. Sales dropped at that time as well. Sears dropped lifetime guarantees on their tools. Sears started selling Craftsman and Kenmore brands (to name two) at other retailers instead of retaining the exclusive rights to sell their own products. There are many reasons Sears is closing up to 120 stores.
The fact is when they merged with KMart, they had KMart stores in the same areas as the Sears stores. Consolidating them has little to do with the economy and more to do with closing in areas where they have a KMart and a Sears "next door". They are competing with themselves as well. Not a bright move. Even a first year business student could figure that one out.
So when you blame "Liberals" for the closings, think of how Sears has just received a $150,000,000 tax break to keep their headquarters here. They then turn around and slap the people in the face. It is clearly ALL Sears' fault here.
If you took a simple course in business, you would know it has little to do with the sluggish holiday sales (which by the way are up from last year) and is merely a smart business move to reduce costs by not having those stores that have failed to make a profit in several years and to put their efforts into those that still make a profit. It happens all the time with big companies. Retailers open in new areas and close those that fail to make a profit or are borderline all the time and shift their focuses to where they can turn more profit. When they have as many stores as they do, in reality 120 stores not doing well is not unusual.
Hardly "Liberal" or "Obama's" fault.
It is easy to blame Obama for all of the problems, but in reality, it came from the administration before him and he has tried very hard to clean it up only to be blocked by those with political motives.
- Floyd GLv 69 years ago
Two words: Open Market.
You see, when companies have to compete against other companies, some wind up falling behind when they cannot compete.
Sears and KMart compete against dozens of other retailers including WalMart, Target, Sam's Club and Costco.
See where this is going?
Go into an average Sears store. It's like they are locked in a time warp as far as display space and sales personnel are concerned. Too many people standing around the various departments. Too much inventory collecting dust because no one is buying at their retail prices.Source(s): Open eyes.
- TKLv 69 years ago
This is not the fault of the president. It's poor management in a chaotic economy. The last K-mart I was in looked like a dump. It had cheap merchandise in a dirty store. The last Sears I was in was in better shape, at least. Now compare them both to a Kohl's or Target store. Those 2 are much more inviting, and pleasing to the eye. If Kmart are going to survive, they need to dump massive amounts of money into the stores, and think long-term, instead of their next quarterly profit / loss statement.
This isn't politics - it's economic Darwinism in action.
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- ahandle101Lv 79 years ago
It is possible that Sears Holdings Corp was following the example that Kmart set over a decade ago: "Don't pay any attention to the customers, we've been running things for years."
In the Obama economy, you have to adapt to be more like Walmart.
- dcarpenter72Lv 69 years ago
As a Illinois citizen Sears has told Governor Quinn that they will move out of Illinois unless the state of Illinois will lower its taxes.
Quinn made a deal with Sears and now the Democrats are not happy campers. Also Quinn made a deal with the Chicago Stock Exchange and Caterpillar Inc to have them remain in Illinois. Obama is the same way just like his Liberal buddies in Illinois and fails to see how bad the economy is and fail to see how raising taxes during a slumped over economy will hurt it much more.
- Anonymous9 years ago
Sears runs their company incompetently; they did not keep up with trends, quality and looks in a competitive market. When you compare Sears with their competitors such as Target and Walmart, they suck.Source(s): opinion
- 9 years ago
I think the economy is in poor shape, the figures are being massaged to hide the true state of the economy, and there is no one especially promising on the horizon to address the situation.
All Obama can say is "it's not my fault" or "it could be worse." That's not leadership!
- 9 years ago
Business will neither take the Chance of expansion or job creation as long as Obama or any liberal is in office. They ALL say that every day, but the Left Wing idiot loons hate America so badly they refuse to listen
- Anonymous9 years ago
Census shows 1 in 2 people are poor or low-income
"Squeezed by rising living costs, a record number of Americans — nearly 1 in 2 — have fallen into poverty or are scraping by on earnings that classify them as low income.
"The latest census data depict a middle class that's shrinking as unemployment stays high and the government's safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families."
Shoplifters robbed while stealing from grocery store
WARNING: PHOTO MAY STARTLE SOME READERS
"Two accused shoplifters got a taste of their own medicine when they sought to clear out of the crime--and found that a passing malefactor had broken into their own car."
Has the economy gotten so bad that now the robbers are robbing each other?