I’ve said it before. I believe Sears Holdings is toast as we know it. The writing has been on the wall and is still being written. Eddie Lampert’s change to self contained profit centers is sleight of hand simply to categorize value and manage assets in preparation for a gradual sell off.
What value does Sears really have now other than intellectual property/brand name? We will not even talk about Kmart. It has sunk below completely irrelevant. It is not that it is not savable. It is more simplistic than that. Eddie Lampert will never ever ever invest the capital in Kmart that is needed to save it and he should not.
It’s like that 100 year old deteriorating home in an up and coming neighborhood. If it has not been kept up over the years, it eventually becomes so broken down than it would cost more to renovate than you could ever re-coup in your investment. It is a “tear-down”. That is what Kmart is… a tear-down. The big difference is that a tear downs generally maintain its good real-estate value. That’s why you tear it down. Whatever you re-build re-coups the investment. The value of Kmart real-estate has been decimated. The precise thing that made Eddie Lampert look like a genius in is now an albatross around his neck. A bunch of junk real estate that nobody wants. Unfortunately, the biggest Albatross around the neck of Sears is Eddie himself.
Kmart does have some very good talent at the top. I have met some of them. Very smart guys. Unfortunately things have gotten to the point where nothing but an “immaculate resurrection” will do the trick and as good as these guys may be on paper, none of them walk on water.
So why should Wal-Mart purchase Sears. Sears has some kick ass brand names that pretty much defines its value, particularly in the hardware/tool department. Wal-Mart could do wonders with these brands. Of course there is also the issue of whether these brands would want Wal-Mart who takes a draconian approach to their suppliers.
Eddie should do it now while there is still intrinsic value to the operation.
March 25th, 2008 at 7:37 pm
Very good thought!
April 22nd, 2008 at 3:04 am
I agree that Sears Holdings Corporation is not on the right road for success… and i agree that it is from the partnership of Eddie Lambert. However, I do honestly believe that Sears Holdings Corporation could turn around only by escaping the grasp of Eddie Lambert.
Yes, Walmart could make a lot of money if they ever had the opportunity to purchase Sears or its brands. However it would add to the downfall of our economy and push more of the buisness’s in the US out of buisness. Which is really all that Walmart has to offer to the United States of America.
Not that Walmart did not have the best interest in mind back when they started, but i believe that their priorities have changed for the worst.
Sears might not be heading completely in the right direction, but I believe that they have a lot more to offer. And that they have more of a chance to help our economy than hurt it.
September 8th, 2008 at 5:46 pm
Wow, that would be really something for Wal-mart to buy Sears. I never hear ANYTHING about Sears any more… but maybe that’s because I never watch TV… and they don’t do a thing online as far as I have seen.
April 2nd, 2010 at 11:42 pm
One Giant eating a smaller giant…could be very interesting, especially to those associates who have worked for Sears and have moved on the the Number One Retailer in the world. I say…go for it Walmart, buy them up.