Sears Canada (1952-2017)

[AlvinofDiaspar]

Another interesting thing to see will be what becomes of all the space. The 4 floors that they currently occupy are massive and they were looking to make it more "open concept".

There's no way they will be able to find anything open concept for cheap in the downtown core. The reason I mention the core is because that's where they will be looking to lease space. Theoretically a mid-sized office building with floors comparable to the Queen-Richmond Centre would fit in perfectly with what they would be looking for but they wouldn't be able to afford something like it, as space like that comes at a premium.

But is there any fundamental reason as to why they need to be in the core?

AoD

 

[Northern Light]

Another interesting thing to see will be what becomes of all the space. The 4 floors that they currently occupy are massive and they were looking to make it more "open concept".

There's no way they will be able to find anything open concept for cheap in the downtown core. The reason I mention the core is because that's where they will be looking to lease space. Theoretically a mid-sized office building with floors comparable to the Queen-Richmond Centre would fit in perfectly with what they would be looking for but they wouldn't be able to afford something like it, as space like that comes at a premium.

What's curious about this is that Sears has already shrunk its footprint considerably inside 'Eaton's.

I know they've fully vacated the 5th floor, I believe they may also have vacated 6 but not sure on that.

But from the staff I know there, I was told 7/8 were renovated to accommodate everyone.

****

Staff morale there, as you'd expect, is poor. So I think we may actually be looking at a wind down by this time next year. To be clear I don't have any inside info on that; but public statements and their cash burn rate could lean one to draw such conclusions. Also the seemingly imminent fail of Sears US would affect the purchasing power of Sears Canada. Making a bad situation, worse.

****

I do wonder what CF may be thinking. I don't see a different retailer going in over Nordstrom; and Nordstrom's existing sales at TEC don't lend one to think adding a 4th floor is in the cards.

But the upper levels are a very odd configuration for your typical commercial office space.

 

[Amare]

But is there any fundamental reason as to why they need to be in the core?

AoD

It's their personal preference; they want to stay in a centralized location that's "easier" for employees to get to.

As for the flooring arrangements, from what I know it's the 6th and 7th floor that the staff mainly use. The 4th and 5th are virtually deserted but they still use them for various functions.

There were rumors going around before that Nordstrom was looking into the space for a potential spot to house head office operations, but I highly doubt it since they want to keep everything based in Seattle since they are worried about what it would do to the "culture" of the company.

 

[James]

Here's a sobering harsh look at the long road down for Sears in the U.S.:

The Long, Hard, Unprecedented Fall of Sears
An icon of 20th century American retailers laid low.
https://www.bloomberg.com/news/articles/2017-05-08/the-long-hard-unprecedented-fall-of-sears

 

[Jasonzed]

Interestingly enough, the Sears store at the Erin Mills TC is going through a major renovation job.

 

[syn]

The same is happening at Fairview.

May be too little, too late, but I find Sears often provides good value. Their in-store experience has been stuck in the mid-90s though.

 

[freshcutgrass]

Memories of aubergine...

I was involved with the eatons re-launch. A noble effort but upper management was the same lame bunch or poached from the Bay so the rot started from the top down very quickly. Sears Canada was outperforming the parent company at the time under the leadership of Paul Walters, so Sears Roebuck agreed to the project. But then they had a complete change of heart when the costs escalated and pulled the plug figuring they would cut their (big) losses. Perhaps they should have let eatons live?

How ironic that they modeled the store after Nordstroms.

 

[Bruno Republic]

Sears US turns a profit, although really they don't.

https://www.thestar.com/business/2017/05/25/sears-posts-its-first-profit-since-2015.html

 

[Northern Light]

The end is ever nearer.

https://www.theglobeandmail.com/rep...about-its-future-seeks-buyer/article35295798/

 

[Skeezix]

They're running out of money. This comes as a shock, says no one.

 

[Admiral Beez]

No one is going to buy Sears. There's nothing to buy, except leases, real estate, credit card customers, and the last few brands of Kenmore, Diehard, etc.

 

[Skeezix]

It's not even that rosy. Suspect Kenmore and Diehard are not on the table for any sale of Sears Canada. The trademarks belong to Sears in the US. Unclear whether the agreements entitling Sears Canada to sell those brands would even transfer to a purchaser.

 

[ShonTron]

No one is going to buy Sears. There's nothing to buy, except leases, real estate, credit card customers, and the last few brands of Kenmore, Diehard, etc.

Even the remaining real estate isn't worth that much. The province bought the old headquarters, the warehouse in Rexdale is sold off. There's a big 1980s-era warehouse in Belleville, but who needs a warehouse in Belleville?

I have to admire Sears Canada for their valiant attempts over the years to keep the brand alive, even for trying with eatons, but it's really hard when you don't own most of your non-hard assets, and controlled by the US operations.

 

[Admiral Beez]

Here's what Sears should have done by early 2000s

1. Keep:
   • LandsEnd
   • Sears catalogue/pickup stores
   • SearsHome stores.
   • Core brands: Craftsman, Kenmore, Diehard, etc.
   • HomeService: Appliance repair, renovations
2. Divest:
   • All bricks and mortar stores
   • All mall leases
3. Focus:
   • eComm in fashion via LandsEnd
   • Home delivery on appliances and furniture

 

[jje1000]

Is there any turning around at this point?

What last-ditch plan could Sears do now that would keep themselves as a business (though not necessarily one that operates department stores) alive?