Brick and Mortar retail is slowly dying

[Reagan1k 3024]

Quote

Sears CEO's hedge fund offers to buy Kenmore brand for $400M

No need to link the whole article.  It reads the same as the rest.  Lampert taking another slice of the pie for himself.

Shareholder will have a foil pie tin with crust crumbs and some spilled filling on the edge.

Change his name to Willie Sutton and make him Head of Security at Bank of America and you get the same results.

[Washpark 176]

Home Depot business model keeps chugging along and not impacted to ecommerce.

[Stella Link 534]

38 minutes ago, Washpark said:

Home Depot business model keeps chugging along and not impacted to ecommerce.

It's tough to buy lumber online and have it delivered by USPS....

[Newdoc 3453]

2 hours ago, Stella Link said:

It's tough to buy lumber online and have it delivered by USPS....

They tried it back in the 80's. Campaign slogan was "USPS, Bringin' the wood to your front door."  A lot of upset husbands quashed the program within the first few months.

[Aqua Buddha 14610]

That's a YUGE number for WMT.  Brick and mortar is doing fine:

 

Walmart (WMT), the world’s largest retailer, had a blowout second quarter and shares are spiking.

U.S. second-quarter comp store sales, excluding gas, were up 4.5% in the quarter, surpassing analysts’ estimates of 2.2%.

“The Walmart U.S. business delivered the best quarterly comp sales results in more than a decade,” CEO Doug McMillon said in a statement.

https://finance.yahoo.com/news/walmart-reports-blockbuster-earnings-shares-surge-111533351.html

[Brew 3049]

On 6/29/2018 at 2:47 PM, Fico said:

Ummm ya, CRE developers aren't building shit if companies aren't leasing, especially big box retail. Big bad developers are not the problem, the problem are companies that continue to demand that space and continue to sign leases.

Side note, one of the better opportunities in CRE is the repurposing of big box retailer locations with medical or creative office. They are usually in very visible locations that are highly trafficked,  near densely populated areas, with surrounding amenities, and unique, wide open, high ceiling space.

There is a big push towards climate controlled storage with the box stores also. We have looked at several opportunities with that in mind but haven’t found the right fit or wanted to pay as much as Uhaul has.

[Reagan1k 3024]

Climate controlled storage demand must be massive.....I see them going up everywhere and we work on multiple projects a year related to new construction on them.

I guess the McMansions still aren't big enough to hold all of our shit. 

I also see a lot of small businesses using them as a bridge between going from 100% home based to leased/owned office or warehouse space.  Work from home, keep inventory and supplies in mini-storage and access as needed.  I know a couple of reps whose day starts with a run to their storage unit for supplies and samples before beating the bushes.

 

 

[Nice Guy Eddie 13523]

Sears closing their Bryan and Houston Memorial City Mall stores:  https://money.cnn.com/2018/08/23/news/companies/sears-store-closings/index.html

The Memorial City Mall location was where my dad would take me to buy Atari games in the late 70s. Good memories.

[Stella Link 534]

8 hours ago, Nice Guy Eddie said:

Sears closing their Bryan and Houston Memorial City Mall stores:  https://money.cnn.com/2018/08/23/news/companies/sears-store-closings/index.html

The Memorial City Mall location was where my dad would take me to buy Atari games in the late 70s. Good memories.

The space in Memorial City Mall should be taken pretty quick.  That mall is always packed.  But the Sears store was terrible.  Felt like a time warp back to the 70s in that store.

[Sbbruin 21888]

Yep, Sears closing 46 more Sears and KMarts

Quote

The bleeding hasn’t stopped at Sears Holdings Corporation.

The once-ubiquitous big-box retailer said it will close another 46 Sears and Kmart stores around the country in November, according to CNBC. The locations include those in Los Angeles, in Miami, and in Long Island, New York. The company has seen a decline in sales each quarter since 2011.

Sears has steadily shed properties in recent years, but the pace quickened in 2017, when it closed at least 175 stores. So far this year, Sears has closed or found unprofitable around 200 Kmart and Sears stores. As of May, Sears was operating around 900 stores, according to CNBC.

The closures include a Kmart near La Brea in Los Angeles at 6310 West 3rd Street; and in Long Island, a Kmart at 605 Old Country Road in Riverhead and a Sears at 578 Aviation Road in Glen Falls. In Miami, a Sears at 1625 107th Avenue will also shutter.

Liquidation sales will begin next week.

In 2015, Sears Holding Corporation spun off its real estate portfolio into Seritage Growth Properties, a real estate investment trust, with the goal of shedding, releasing or redeveloping those 253 properties. Of those, 230 were or still are leased to Sears Holding, for Sears and Kmart stores.

Notable Seritage redevelopments include a creative office conversion of a mid-century store in Santa Monica, California. [CNBC] —Dennis Lynch 

 

[RDCanecutter 26473]

Walked through a Sears last week, doing my "park on the empty Sears side of the mall" trick.

(No, we had no reason to be at the mall either. Quite often, we just up and do shit for no reason. It's fun.)

To my surprise, the Sears was bustling, full of goods and people. It's like it didn't know it was dead.

I don't know what I was seeing-- a couple of green branches on a stump? Actual highly-local success?

[chainsaw 9873]

If I have to be at the mall, I like being at Sears because it's the only place with cool shit like electronics, tools, and hardware.

[luke duke 6414]

That's a YUGE number for WMT.  Brick and mortar is doing fine:
 
Walmart (WMT), the world’s largest retailer, had a blowout second quarter and shares are spiking.
U.S. second-quarter comp store sales, excluding gas, were up 4.5% in the quarter, surpassing analysts’ estimates of 2.2%.
“The Walmart U.S. business delivered the best quarterly comp sales results in more than a decade,” CEO Doug McMillon said in a statement.
https://finance.yahoo.com/news/walmart-reports-blockbuster-earnings-shares-surge-111533351.html

The poors don’t shop online.

[Nice Guy Eddie 13523]

The Sears CEO is blaming their retirees as the reason sears is failing.  Sears has underfunded their pension plans and now have to put extra funds in them in an attempt to catch up.  Why isn’t the CEO blaming himself or previous CEOs for allowing this situation to occur.  

Yes if they had dropped pensions in the 90s, it may have lead to other tough decisions but they may not be failing at the moment.

[Aqua Buddha 14610]

Retiree pensions are not the reason Sears is failing.  I saw that story and didn't even click on the link because I knew what he'd say.

[Incredulity 11683]

I would be nervous as hell if my financial well being was tied to a Sears pension.

[heso 2816]

On 9/15/2018 at 10:02 AM, Nice Guy Eddie said:

The Sears CEO is blaming their retirees as the reason sears is failing.  Sears has underfunded their pension plans and now have to put extra funds in them in an attempt to catch up.  Why isn’t the CEO blaming himself or previous CEOs for allowing this situation to occur.  

Yes if they had dropped pensions in the 90s, it may have lead to other tough decisions but they may not be failing at the moment.

Like the employees getting old, retiring, and then drawing their pensions was some sort of unforseeable or highly unlikely scenario. 

[Onboard 2.0 9083]

On 8/15/2018 at 9:57 AM, Stella Link said:

It's tough to buy lumber online and have it delivered by USPS....

We're gonna need a bigger mailbox.

[Guest Lobo]

I like that Sears, who has the most antiquated sales model in retail, is blaming the most antiquated employee benefit, the defined benefit plan for their current woes.  

As the CEO also skimming by having Sears pay for his Diner's Club card bill every month as well?  

[MaybeACoordinator 8349]

15 hours ago, heso said:

Like the employees getting old, retiring, and then drawing their pensions was some sort of unforseeable or highly unlikely scenario. 

Sears hoped their ex-employees would be quickly dying. 

[Nice Guy Eddie 13523]

There is also the weird situation where the  Sears CEO is actively buying the Sears assets for his other company.  I believe he doesn’t vote in the board decisions about the sales but there is the potential scenario that he allows the company to tank only to buy the assets for pennies on the dollar.  

[NeverMarryAStripper 21921]

10 hours ago, MaybeACoordinator said:

Sears hoped their ex-employees would be quickly dying. 

Unfortunately they managed to drag out their deaths long as Sears has

[Guest Lobo]

Sears:  We built our assistant store managers like we built our DieHard Batteries and Kenmore Washers.  To last long with balls of steel.  You don't like our prices, our selection, our store experience, or our defined benefit plans?  Tough shit, commie.  We were here before the Spanish-American War, and now half those fuckers work for us.  We've sold more telephones in the last 125 years than Apple has sold iPhones. And our catalog's risque' pages are more responsible for your grandfather's sexual awakening than that fat cow you call a grandmother---who still buys socks and handtowels here to wipe up his jizz.  Your soap box derby car didn't lose the grand prix because of top-tier Craftsman tools, it lost because you're a shell of an American living in a broken era.  You think we're scared of online shopping?  We helped co-fund the fucking Tandy, bitch.  We're retooling our stores and your mom, 'cause America loves a comeback.  Kick the tires on your childhood memories, 'cause this store is where your dreams came to die.  And for some bizarre fucking reason we're still doing haircuts, family portraits, and eye exams.  Come See the Softer Side...of your Mom.  

SEARS:  Still time to make one more bad decision, America.  

[RPM 26354]

9 hours ago, Nice Guy Eddie said:

there is the potential scenario that he allows the company to tank only to buy the assets for pennies on the dollar.  

That's been his gameplan from Day 1.

[TheYoungHorn 58]

21 hours ago, RPM said:

That's been his gameplan from Day 1.

Plus the massive golden parachute he will get in addition to pilfering from the shareholders all the real estate and brand equity. 

[Nice Guy Eddie 13523]

Sears could will be announcing bankruptcy soon.  Sounds like they’re attempting to secure financing to remain open during bankruptcy.  Read their stock is down 30% pretrading today.  18 cents.  

I guess we will hear from the ceo again that NONE of these problems are the result of bad senior management.  It’s all those employees and their compensation demands.  

[Parliament 14296]

At $0.18 is Sears a buy?

[Aqua Buddha 14610]

On September 18, 2018 at 2:52 PM, TheYoungHorn said:

Plus the massive golden parachute he will get in addition to pilfering from the shareholders all the real estate and brand equity. 

Don't forget that he's also the chief creditor to Sears and he'll get paid while the rest of the debt holders get stiffed.

[Nice Guy Eddie 13523]

2 hours ago, Parliament said:

At $0.18 is Sears a buy?

If they declare bankruptcy isn't it a good chance shareholders will get 0?

[happyfunball 481]

6 hours ago, Parliament said:

At $0.18 is Sears a buy?

YES. PUT ALL YOUR LIFE SAVINGS AS I AM SURE THEY WILL BE ABLE TO FINALLY TURN IT AROUND AFTER YEARS OF THE DOWNWARD SPIRAL

[Macanudo 13012]

14 hours ago, Aqua Buddha said:

Don't forget that he's also the chief creditor to Sears and he'll get paid while the rest of the debt holders get stiffed.

How is this not a tremendous conflict of interest?    i can't figure out how this guy isn't in jail.

[RPM 26354]

His gameplan from word go was to strip the company and sell off the real estate. Saving the business was not a part of the deal.

[Nice Guy Eddie 13523]

6 hours ago, Macanudo said:

How is this not a tremendous conflict of interest?    i can't figure out how this guy isn't in jail.

Sears says that only the independent board members vote on items related to the ceos outside businesses.   Which those transactions may be on the up and up.  However you have to wonder if the ceo makes day to day decisions that are better for sears or his outside companies that continually buy sears assets.  

 

[TheYoungHorn 58]

12 hours ago, Macanudo said:

How is this not a tremendous conflict of interest?    i can't figure out how this guy isn't in jail.

Because the board continues to be a willing participant in enabling his fraud, making it legally speaking not fraud. 

Edited October 11, 2018 by TheYoungHorn

[Guest]

Could it be that Sears has finally succumbed? Talk about holding on for dear life, didn't Radio Shack die like 5 years ago and Sears was in worse shape than them when everyone started talking about the death of retail:

 

Sears files for Chapter 11

Updated 2 minutes ago

Sears Holdings filed for bankruptcy protection this morning, CNBC reports. CEO Eddie Lampert will step down from his post, although he will remain chairman. Sears will close approximately 142 of its 700 stores as part of the bankruptcy protection. Over the weekend it was reported that Sears was close to reaching a deal with its lenders that would keep the famed retailer alive through Christmas. The ultimate hope is for the retailer to find a buyer. It remains to be seen how any deal would affect the company’s 90,000 workers.

[Guest Lobo]

I think Austin Community College could probably kick in for a dozen or so of their stores to turn into campuses.  

[Aqua Buddha 14610]

Brick and mortar isn't dying and Sears is a perfect example.  A lot of these retailers barely make a profit but have a crushing debt load.  The ones that don't are doing just fine.  They're having to innovate but that's the nature of business.

[RPM 26354]

Sears should have been Amazon. They started out as a mail order company but failed to adapt when the internet came around even though they were a front runner in the early days. Anyone remember Prodigy?

 

[Parliament 14296]

2 hours ago, RPM said:

Sears should have been Amazon. They started out as a mail order company but failed to adapt when the internet came around even though they were a front runner in the early days. Anyone remember Prodigy?

 

"Shop at home"  in 1990.  Yeah they kinda messed up there.

[Slacks 6862]

Sears is dying because the stores are really large warehouses with too much product, regardless of demand. Go walk through a Sears. There is SO MUCH of EVERYTHING.

They tried to she money by continuing to use a slow retail system with easily replaced IBM terminals. They should have updated the retail system and optimized their inventory levels to better match demand.

Sears was once great. Now it's on life support.

[Parliament 14296]

Actually Sears is dead.  They filed Chapter 11 today.

[3adays 454]

Stein Mart closed their Anderson Lane location recently. Could be trouble for them too 

[BottleRocket 647]

RIP Sears Barton Creek Mall.  Now I don't know where to park on my yearly trek to the shopping mall to buy my Yankee candle.

 

[Guest Lobo]

I actually use that auto center a couple times a year.  They've got convenient service hours.  They're not the best mechanics in town but they do a good enough job, are eager to help, and don't charge what specialty places do for foreign cars.  

What in the holy hell is Simon gonna be able to turn that into?  There's no options left.  Self storage maybe based on the looks of all the other ones going up around there.  

[TheYoungHorn 58]

3 hours ago, Lobo said:

I actually use that auto center a couple times a year.  They've got convenient service hours.  They're not the best mechanics in town but they do a good enough job, are eager to help, and don't charge what specialty places do for foreign cars.  

What in the holy hell is Simon gonna be able to turn that into?  There's no options left.  Self storage maybe based on the looks of all the other ones going up around there.  

Simon, as I think they are probably doing in other spots across the country is going to have to break up that space and look at specialty retail and other "entertainment" focused tenants.

 

 

 

[Parliament 14296]

Opium dens

[GhostOfTomJoad 9351]

I shared my suggestion on the old site awhile back about what to do with dying shopping malls: convert to mixed-use facilities with housing for the old (or yuppies if you're in a Domain-type location).

Center around a few hubs the old folks still shop at, throw in a pharmacy, partner with a large medical provider for onsite doctor/dental services, & a Luby's for dinner. Put the housing on the perimeter walls for views, create some indoor atriums & repurpose the parking lots as green space & natural areas.

[GopherRock 1769]

Local developers are licking their chops to get their hands on the Sears next to the State Capitol in St Paul. 

[Parliament 14296]

On 10/16/2018 at 1:06 PM, GhostOfTomJoad said:

I shared my suggestion on the old site awhile back about what to do with dying shopping malls: convert to mixed-use facilities with housing for the old (or yuppies if you're in a Domain-type location).

Center around a few hubs the old folks still shop at, throw in a pharmacy, partner with a large medical provider for onsite doctor/dental services, & a Luby's for dinner. Put the housing on the perimeter walls for views, create some indoor atriums & repurpose the parking lots as green space & natural areas.

ie, a concentration camps for old people?  I can dig it.

[PittsburghTiger 6197]

On 10/16/2018 at 2:06 PM, GhostOfTomJoad said:

I shared my suggestion on the old site awhile back about what to do with dying shopping malls: convert to mixed-use facilities with housing for the old (or yuppies if you're in a Domain-type location).

Center around a few hubs the old folks still shop at, throw in a pharmacy, partner with a large medical provider for onsite doctor/dental services, & a Luby's for dinner. Put the housing on the perimeter walls for views, create some indoor atriums & repurpose the parking lots as green space & natural areas.

Those dead mall YouTube videos are sad. Our Sears, at the mall across the river, closed a few years ago. The mall is awful.