Sears Canada (1952-2017)

[Bruno Republic]

"All the carpets have been removed, and the shelves and space dividers are on wheels, making it easier to create and collapse departments depending on what’s selling and what’s not..."

...and quickly vacate the premises should anyone show interest in buying the lease.

Also worth noting that the new marketing campaign is actually "WTS - What the Sears is going on?" Hard to believe, but yes that's their new slogan.

...
*speechless*

 

[Skeezix]

[...]
That sounds like heading for the discount side of the business.

Not historically Sears reputation or area of expertise.

[...]

... a side of the business which is incredibly competitive, with thin margins, and with players with a lot more expertise and deeper pockets than Sears.

 

[narduch]

Isn't Promenade rumoured to be sold off and re-developed?

Seems like a waste to invest in that store.

 

[Bruno Republic]

Isn't Promenade rumoured to be sold off and re-developed?.

Just like Sears would've been, only they couldn't find a buyer.

Seems like a waste to invest in that store.

Doesn't sound like they invested much at all. The article mentions the stores is now half the size it used to be. That sounds more a divestment to me than an investment.

 

[Skeezix]

That raises another issue. The Star article noted above, as well as the corresponding article in the Globe, state the store is about 40% smaller. The Financial Post says that it's the lower level that has been closed off and boarded up. It appears that the next step in the Sears fire sale is to sell the leases to, or sublease, parts of stores the remainder of which it otherwise wants to keep. It's done that in the States, where it has sold off entire floors to Primark.

Whether the smaller stores will improve Sears' fortunes remains hard to tell. Maybe, although Sears stores will look more like a Winners store (a Winners with appliances and tools) than Sears' stores of the past. Will this attract new customers (can Sears compete in this sector?), or will they simply alienate existing customers?

 

[narduch]

They are probably just looking to further cut costs, but trying to put a positive spin on it.

 

[officedweller]

The G&M article was the most thorough (but it's behind a pay wall).

In addition to physical design changes, they're focussing on:
- 100 value priced house brand deals (that 75% of customers would find attractive);
- dictating to suppliers what their selling prices must be and expecting corresponding wholesale prices; and
- buying overstocks and overruns in much the same way that TJMaxx/Winners does (including price tags with suggested price/competitor's price/Sears price).

So it sounds like the items they stock will always be in flux, rather than a traditional department store.

 

[Bruno Republic]

... they're focussing on:
- dictating to suppliers what their selling prices must be and expecting corresponding wholesale prices; and

Good luck to that, given their dwindling presence and buying power in the market.

- buying overstocks and overruns in much the same way that TJMaxx/Winners does (including price tags with suggested price/competitor's price/Sears price).

So yeah, looks like they're making a half-hearted attempt to rebrand themselves as an alternative to Winners.

Will this attract new customers (can Sears compete in this sector?), or will they simply alienate existing customers?

I'm thinking the latter, simply because Winners has already claimed that market and expanded accordingly. What would Sears' competitive differentiation be? Maybe location in smaller markets. I can't think of any other. We've already got one major chain that people go to with zero expectations (by that I mean Winners customers know they can't expect to find anything specific; they just show up to see if there's anything they want on offer). Is there room for another?

 

[officedweller]

Maybe if they can compete on price.

Nordstrom Rack and Saks Off 5th are actually pretty expensive for discounters.

Customers (esp. discount customers) don't have much loyalty these days.
If Sears can position itself around Winners level, and if the store locations are convenient, they'll get customers (as long as the customers know about the deals).

Nowadays, I don't think customers generally go to clothing stores looking for specific items. It's largely impulse buying....

 

[Skeezix]

Unclear that Sears can compete with players who know the segment much better and have deeper pockets.

 

[Skeezix]

The fire sale in the U.S. continues.

If Craftsman does attract $2 billion, how much of that cash do we think will be pumped back into the company versus distributed to shareholders?

Query to what degree the sale of Craftsman, Kenmore and DieHard will impact the Canadian operations. Maybe very little, if they are transitioning their stores in much smaller Winners-type outlets (assuming they actually follow through on those plans, given their terrible track record of abandoning revitalization efforts after a handful of stores).

 

[ShonTron]

So it sounds like Sears Canada is trying to become what Montgomery Ward was in the 1980s and 1990s. Good luck with that: just ask Montgomery Ward.

 

[Amare]

The fire sale in the U.S. continues.

If Craftsman does attract $2 billion, how much of that cash do we think will be pumped back into the company versus distributed to shareholders?

I'd say 70% will go to shareholders, the other 30% will be funneled back into the company but not for store improvements since Uncle Eddie doesnt see any problems with his stores.

It would've done wonders for Sears Canada if their parent company divested themselves of their controlling interest in the company. But at this point in time im not so sure how much that would help matters out.

 

[Skeezix]

[...] It would've done wonders for Sears Canada if their parent company divested themselves of their controlling interest in the company. [...]

Sears Holdings did divest itself of Sears Canada, but unfortunately no one was buying, so Eddie bought the shares himself. So, yeah, not an improvement.

 

[AlvinofDiaspar]

The Globe and Mail@globeandmail
8 mins ago
Sears Canada posts wider loss as sales fall. http://www.theglobeandmail.com//rep...ll/article33280192/?cmpid=rss1&click=sf_globe

Sears Canada’s same-store sales fell 7.1 per cent in the quarter, while overall revenue tumbled 21 per cent to $625.2-million.

Nobody could see that coming.

AoD