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Sears Canada (1952-2017)

  • Thread starter CanadianNational
  • Start date
The objective of Sears Holdings in the U.S. is to suck as much cash out of Canada for the shareholders as possible. If someone offers you good money for a lease, you take it, regardless of what it might do to the long-term prospects of the chain overall.

They are, without a doubt, consciously and deliberately slowly liquidating the chain.
 
Because fashion-conscious Canadians across this country were hankering for a Wayne Gretzky clothing line. And Zellers sold Cherokee for years - shoppers were hardly beating down their doors for it.

(I seem to recall that Gretzky had a line of clothing years ago, after his association with GWG ended.)

Sears Canada teams up with Wayne Gretzky for new line of clothing, grabs Target labels
Toronto Star
Francine Kopun, Business reporter, Apr 23 2015
 
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While I admire Sears Canada's determination and their continued efforts to make deals, they have an enormous uphill battle ahead of them. Unfortunately, I don't see Gretzky as the miracle they need right now.
 
While the media yesterday was focused on the fact that Sears has three new lines, the benefits of which are debatable, this news appears to have been largely overlooked. I love the doublespeak of the Sears executives - rather than saying "we are losing money, so we need to cut costs", they say "This business is sized for significantly more revenue than we produce today".

Sears Canada looking for more ways to cut costs to reflect lower revenue level
Yahoo Finance, Canadian Press - April 23, 2015
 
The article posted by The Star shows the results in a much less flattering light. The link to the story reads "Sears Canada revenue plunges amid store closures"

http://www.thestar.com/business/2015/05/20/sears-canada-loses-591-million-in-q1.html

It also points out "After various adjustments in both years, Sears Canada’s first quarter loss was $50.5 million compared with a loss of $58.1 million last year." So, not much of an improvement.
 
You guys are all so glass half empty.

They are obviously arresting gradually their losses, which, if I do a few calculations, should even out when they close their last store.

42
 
The big question is: What or who is going to pull that plug, though? It's just getting strung along aimlessly now.
 
James said:
The big question is: What or who is going to pull that plug, though? It's just getting strung along aimlessly now.
Click to expand...

If you listen to someone like Brian Sozzi, Sears Holdings in the U.S. only has another year or two before it runs out of cash and options.

As for Sears Canada, I suspect that Lampert thinks he can keep sucking a bit of money out of it for shareholders, given there is probably more real estate and more leases it can sell (although most of the good assets are gone, and Target's abandoning of Canada won't help Sears' efforts to sell off its stores).
 
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