Can Eddie Lampert save Sears?
The billionaire investor takes over the beleaguered chain after the abrupt departure of former CEO Lou D'Ambrosio.
Lampert, who has been arguing that Sears was on the verge of a turnaround since the administration of George W. Bush, will now have to match his words with deeds. That is not going to be easy.
The venerable retail chain continues to be vexed by an identity crisis. Wal-Mart (WMT), for instance, is known for its low prices. Target (TGT) is seen as a slightly more up-market alternative to Wal-Mart. What does Sears have to offer today's shopper? No none seems to know, and this confusion is reflected in the financial performance of the company.
Sales have declined for an eye-popping 23 straight quarters, which as Bloomberg News notes has eroded the company's cash position. D'Ambrosio, who had no retail experience when he joined the company last year, wasn't able to do much to stem the bleeding. He will remain with the firm through February.
The company has been forced to sell what it can to keep itself afloat. In October, it spun off its Sears Hometown and Outlet stores, which sells hardware, tools, home appliances, and garden equipment. It also spun off part of Sears Canada.
Shares of Sears have surged more than 47% over the past year as investors bet that Lampert would take the company private or improve the chain's financial performance enough to make it an attractive merger partner. The company's struggles, though, continue.
Sears said Monday that it expects to lose $280 million to $360 million, or $2.64 to $3.40 per share, in the current quarter. The net loss for the fiscal year will be between $721 million and $801 million. But excluding one-time costs and other items, profit would be $1.25 to $2 per share. Give the company credit for putting a positive spin on the situation.
Earnings before interest, taxes, depreciation and amortization should improve for the U.S. for four quarters straight, D'Ambrosio said in a statement, and the company had cut its net debt by $400 million at the end of 2012.
Whether that's good enough for Wall Street remains to be seen.
Jonathan Berr is long Target. Follow him on Twitter @jdberr.
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Sears has been known for the great quality products it sold in the past such as the prior "made in china" Craftsman Tools. However the greatest problem is their sales people.
Unfortunately Sears is also known for the employees that work at the stores. Untrained, uninformed, lazy people who don't seem to know or care about the products they're selling.
Example: I went to a Sears to purchase an airconditioner. The particular store didn't have the one I was looking for so the "ONE GOOD" employee there said she would call the closest store to see if they had one in stock. The problem was that no one at the other store would answer the phone. She had then got a bright idea of calling the department right next to appliances. The employee of that department picked up the phone and while she was trying to explain the situation, the person on the other end just said "you have the departement" and hung up before she could also explain that she was an employee from another store and couldn't get through to that department.
As all this was going on, I couldn't help but notice that, in that very store were I was, there were two employees talking casually to each other and doing nothing as the frustrated employee was trying to help me. There were as least three customers in the appliance department, that obvious to even me, were waiting for help, while the one good employee was trying desperately to help me.
I just thanked her for her trying to do a good job and said to go ahead wait on the other customers. I also told her in what order they'd come into her department.
Customer service is the most important thing when running a business!
I HATE Wal Mart. One example is that Wal Mart employees have a sign on the BACK of their uniform that says "How many I help you?" as they're walking away. That is so ironical, but says it all. Then there's the guy, in the commercial" who is helping the lady SAVE money when buying groceries from a reciept she has from another store! That guy certainly doesn't exist in any of the Wal Marts I've been in lately.....I know the bargins there, I buy those few items an get out of that place ASAP,
The point is that employees can be the greatest asset, or the worse problem to any business. A smart CEO will be cognizant to this. It is IMPOSSIBLE to contact Sears directly.......which is their greatest mistake. I wanted to contact Sears to let them know the had at least one great employee, but at least four who weren't.
My Family had purchased Craftsman Tools, Carharts and Kenmore Products from Sears for years and years, but once they started making them overseas the quality bottomed out and now we just buy any tools that we can find that are made in the US. We no longer buy anything from there as they changed too many things and putting their sales people only on commission has made several of them annoying and stealing sales from each other so that we cannot go there anymore.
Craftsman use to be a name of pride now it is just another thing made overseas that lacks the quality it had when they were made in America!
i wouldn't even bother. Going under is like a meteor hit; not a matter of if but when. Customer service SUCKS! I used to laugh at the complaints until it appened to me. The idiots (including me for not having checked on them) that delivered a washing machine/dryer left the shipping rod still attached to the washer. When I took it for its first spin you could hear the banging all the way outside the house and it walked all around the washing closet. I finally figured out what it was and called it in because I wanted a replacement since I didn't know if it was now damaged. Well, they wanted me to call a repairman and fix it because I didn't buy an extended warranty. It didn't matter that it was the day after it got dropped off. The rep "noted" it in the account and after three weeks of waiting I emailed the head honcho in charge of the web orders. He assured me that someone would contact me within 48 hrs. I'm glad I'm not holding my breath. Done with SEARS. I donated the washer and bought another one ELSEWHERE. Not conducting ANY business with schmucks like these.
After four generations of Craftsman tool purchases, this family is done! Recently went to the Sears store in Clackamas to buy a band saw blade. It took a little while to find it, displayed not near the band saws or other blades but several isles away. Bought the blade and was told that I had several 'customer loyalty' points that would expire in just a few days. I decided to buy another blade that would be needed in the near future and... that's when the problems started.
The loyalty points couldn't be used and not one of the several clerks knew why. Someone from another department (adjacent to the tools) offered to help if I had 'just a couple of minutes'... He was unable to explain or offer a true solution, asking me to 'log in to your e-mail on our computer...' When I logged in to the Sears Customer web site with my ID and asked him a few questions about the customer loyalty points site, the response was 'don't know, never saw this web site before! They're always changing this system & I don't know what to say'.
Returning to the original counter, determined to simply pay the retail price and leave, a lady asked for my ID (?), took it out of my wallet and proceeded to copy some information on the receipt. After fumbling for several minutes more (we're now past 20 minutes of my time and my wife left the store in disgust), I asked for my ID back and explained that I had no more time and just wanted to forget the points and pay. Not once but three times, she pulled my ID from my hands and took it back to the register a few feet away. Obviously it was more important that she prove the point system would work than it was for her to respect our time and preferences.
After requesting a number of times that she stop and simply allow me to leave, she asserted that the points had finally been awarded but too many... !! It wasn't too many but, just prior to me calling security, she accepted my requests and completed the transaction.
One week later, our family experienced a similar purchase experience in the appliance department. Again, several calls, no one knew what to do or how....
I currently use Craftsman tools and woodworking equipment that was originally purchased in the 1940's but.... dunwidem! I find it unacceptable to drive 20 miles (round trip) to be disrespected and totally disappointed with service. Gee, Sears... in 'proving' the customer loyalty system, you've lost a third generation customer as well as that of our family... the fourth generation customers. I'll order through Amazon or buy locally at Home Depot or Lowes...
A sears near me has been turned into an outlet store, some things marked down as much as 60%, still no more traffic then when it was a regular Sears.
Our Sears and our K-Marts are real nice stores and I got alot of great Christmas buys there this year. Target is a hipster doofus paradise. Lots of style, no substance and our Wal-Marts are a halfway house for shoplifters and the mentally/socially wierd. HAHA
Had great customer service from a salesperson/employee named "Aun" (pronounced "On") . Sears needs more people on the floor like him, great service, and got me out the door quick and efficiently.
lets place blame about the cheap foreign made goods where they truely reside. the company that allows the goods to made cheaply. for everyones complaining about stuff being made overseas and how cheap they are it is the companies that allow it to done. the workers who make it are not to blame. there is no longer any quality assurance in companies that sell a formerly good brand and that used to last for 10-20 yrs and now sell them to last 1-2 yrs. If people want things made well regardless, then tell the companies, employees anyone why you are not buying their junk anymore.
close your sears credit cards and tell them why. We have been all sold out for higher profits and salaries for the CEO's. let this be a wakeup call.
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[BRIEFING.COM] The stock market finished the Tuesday session on the defensive after spending the entire day in a steady retreat. The S&P 500 (-0.6%) posted its third consecutive decline, while the small-cap Russell 2000 (-0.9%) slipped behind the broader market during afternoon action.
Equity indices were pressured from the start following some overnight developments that weighed on sentiment. The market tried to overcome the early weakness, but could not stage a sustained rebound, ... More
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Bill Stiritz owns more than 5% of the company, and has experienced an estimated $145 million in paper losses on his investment.
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