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Skeezix
Senior Member
Shocking, but not unexpected.
Sears Holdings in the U.S., in its annual report filed today, has advised that "substantial doubt exists related to the Company's ability to continue as a going concern."
How long before Sears Canada follows?
Sears Holdings in the U.S., in its annual report filed today, has advised that "substantial doubt exists related to the Company's ability to continue as a going concern."
How long before Sears Canada follows?
gabe
Senior Member
The Kitchener Sears at Fairview mall is under major renovation. My guess is they are going to give the store an industrial discount look, with the bare concrete floors like the Guelph Sears.
The one half of the store is a construction zone, so everything was crammed to one side. Which actually made the store seem busy with lots of people browsing.
The one half of the store is a construction zone, so everything was crammed to one side. Which actually made the store seem busy with lots of people browsing.
Retail-Insider
Active Member
Sears Canada is changing its strategy by launching an off-price retail concept/shop-in-store: http://www.retail-insider.com/retail-insider/2017/3/sears-the-cut
It'l play in the same space as Winners/Marshalls/HomeSense/Saks Off 5th/Nordstrom Rack. It'l also have a lot of private label Sears product in the non-'outlet' part of the store.
It'l play in the same space as Winners/Marshalls/HomeSense/Saks Off 5th/Nordstrom Rack. It'l also have a lot of private label Sears product in the non-'outlet' part of the store.
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Skeezix
Senior Member
As was speculated months ago in this thread, by @Bruno Republic and @Northern Light I think. They have to try something, but there are bigger players in that arena that have more expertise. But if they can shake up their stodgy image, and successfully get in on a growing market segment, then good for them.
The logic of the pop-up eludes me, though.
The logic of the pop-up eludes me, though.
AlvinofDiaspar
Moderator
From the Star:
https://www.thestar.com/business/2017/03/22/sears-has-substantial-doubt-about-its-future.html
That's a rather unfortunate name given the context - hasn't the cut been happening for awhile?
AoD
https://www.thestar.com/business/2017/03/22/sears-has-substantial-doubt-about-its-future.html
That's a rather unfortunate name given the context - hasn't the cut been happening for awhile?
AoD
gabe
Senior Member
Oh so that's what "The Cut" is. i saw some really gaudy looking Versace coats yesterday in The Cut section. I think they were around $300.
Skeezix
Senior Member
Is it just me, or does "The Cut" just sound like a terrible name for this, above and beyond the unfortunate and insensitive connotations that @AlvinofDiaspar correctly noted?
Skeezix
Senior Member
Interesting Canadian perspective on the U.S. Sears effectively announcing that it sees itself going belly up.
‘Turbulent times’ as U.S. parent raises questions about fate of Sears Canada
Marina Strauss, The Globe and Mail, 22 March 2017
Some key quotes for those of you who aren't G&M subscribers:
- Last fall it unveiled new prototype stores – smaller than regular ones – aimed at focusing on its fashion and other key categories in less space, as well as adding groceries. But the initiatives haven’t been enough to reverse its downward spiral.
- But he said Sears Canada’s fourth quarter results, which are expected to be released next month, are “likely awful” so it can “cushion the news with liquidity lined up.”
- With Sears Holdings faltering, joint merchandise procurement is likely to be the biggest issue for Sears Canada, he said. “Also spillover anxiety could further hurt appliance sales in Canada.”
- The landlords all have contingency plans, or are developing potential blueprints, for Sears sites, anticipating potential problems at the department-store retailer, he said. “This is no longer Plan B – it’s Plan C,” Mr. Williams said. “They did their Plan B on Targets.”
- He said Sears Holdings’ move this week to essentially pre-announce that it has serious doubts about whether it can continue as a going concern is a rare step for a retailer to take, signaling that it’s in trouble. The move will make suppliers even more hesitant to ship products to Sears unless they’re paid in full in advance, he said.
- No obvious suitors have emerged for Sears but archrival Hudson’s Bay Co. may want to pick it up at a very low price, he said. “If the price is right I’m sure they would consider it.” [Doubt it, as Sears has already unloaded the valuable real estate and leases that would have interested Richard Baker]
‘Turbulent times’ as U.S. parent raises questions about fate of Sears Canada
Marina Strauss, The Globe and Mail, 22 March 2017
Some key quotes for those of you who aren't G&M subscribers:
- Last fall it unveiled new prototype stores – smaller than regular ones – aimed at focusing on its fashion and other key categories in less space, as well as adding groceries. But the initiatives haven’t been enough to reverse its downward spiral.
- But he said Sears Canada’s fourth quarter results, which are expected to be released next month, are “likely awful” so it can “cushion the news with liquidity lined up.”
- With Sears Holdings faltering, joint merchandise procurement is likely to be the biggest issue for Sears Canada, he said. “Also spillover anxiety could further hurt appliance sales in Canada.”
- The landlords all have contingency plans, or are developing potential blueprints, for Sears sites, anticipating potential problems at the department-store retailer, he said. “This is no longer Plan B – it’s Plan C,” Mr. Williams said. “They did their Plan B on Targets.”
- He said Sears Holdings’ move this week to essentially pre-announce that it has serious doubts about whether it can continue as a going concern is a rare step for a retailer to take, signaling that it’s in trouble. The move will make suppliers even more hesitant to ship products to Sears unless they’re paid in full in advance, he said.
- No obvious suitors have emerged for Sears but archrival Hudson’s Bay Co. may want to pick it up at a very low price, he said. “If the price is right I’m sure they would consider it.” [Doubt it, as Sears has already unloaded the valuable real estate and leases that would have interested Richard Baker]
Skeezix
Senior Member
"With Sears Holdings faltering, joint merchandise procurement is likely to be the biggest issue for Sears Canada."
Is it possible that this is one the reasons Sears Canada is going purely private label and off-price? They expect difficulties in continuing to stock major brands, so are going to stick with their own private label and with overstock merchandise that TJX didn't want?
Is it possible that this is one the reasons Sears Canada is going purely private label and off-price? They expect difficulties in continuing to stock major brands, so are going to stick with their own private label and with overstock merchandise that TJX didn't want?
Bruno Republic
Active Member
The first article you posted mentioned the reason why: a 2014 update in accounting regulations requires them to mention in their financial statements if they have doubts that the business can continue to be operated as a going concern. Presumably this regulation was put in place to prevent potential investors from being duped into getting on board a sinking ship.
Bruno Republic
Active Member
Sounds quite plausible to me.
Amare
Senior Member
The sad thing with all this is that the Chairman in Canada is trying to delude people into thinking that a downfall in Sears in the U.S will have no impact on Canadian operation.
That's outright non-sense coming out of the mouth. The logic that is being used: Sears Holdings no longer owns shares of the Canadian operation and as such anything that happens there has little effect on operations here. If only people realized that Uncle Eddie owns nearly as much of the holding company in the U.S as he does in Sears Canada through his little pet project ESL Investments.
The only thing that's holding Uncle Eddie to Sears Canada is that he's trying to extract as much value from the American operations before it nosedives. If the same thing happens to Sears Canada he will do the exact same thing here. He's only in it since he's first in line to get paid once the company fizzles out.
That's outright non-sense coming out of the mouth. The logic that is being used: Sears Holdings no longer owns shares of the Canadian operation and as such anything that happens there has little effect on operations here. If only people realized that Uncle Eddie owns nearly as much of the holding company in the U.S as he does in Sears Canada through his little pet project ESL Investments.
The only thing that's holding Uncle Eddie to Sears Canada is that he's trying to extract as much value from the American operations before it nosedives. If the same thing happens to Sears Canada he will do the exact same thing here. He's only in it since he's first in line to get paid once the company fizzles out.
jje1000
Senior Member
Sears was always going to be a hard ship to steer, but its current state can be almost entirely attributed to Eddie Lampert, who seems less interested in saving Sears than in stripping and selling everything of value.
I wonder in a hypothetical sense- if some new CEO took over with a mandate to salvage and stabilize the remnants, what would the resultant 'Sears' look like?
Perhaps a rump chain of specialty retailers (the same way Woolworth's lives on through Foot Locker)? Something like a Winners?
Also interesting noting that 2017 seems to be the red year for big traditional department stores.
http://www.usatoday.com/story/money...enney-macys-mcsports-gandermountian/99492180/
I wonder in a hypothetical sense- if some new CEO took over with a mandate to salvage and stabilize the remnants, what would the resultant 'Sears' look like?
Perhaps a rump chain of specialty retailers (the same way Woolworth's lives on through Foot Locker)? Something like a Winners?
Also interesting noting that 2017 seems to be the red year for big traditional department stores.
http://www.usatoday.com/story/money...enney-macys-mcsports-gandermountian/99492180/
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jje1000
Senior Member
Also interesting note- 2017 perhaps looks to be a red year for many additional retailers as well:
http://www.retaildive.com/news/mood...etailers-nearing-recession-era-levels/437050/
http://www.retaildive.com/news/mood...etailers-nearing-recession-era-levels/437050/