Is Sears Dying a Slow Death?

Fox Business ^ | DECEMBER 9, 2016

[Hojczyk]

Sears (SHLD), the 130-year-old American icon, can’t find a way to stop the bleeding.

The floundering retailer has closed hundreds of Sears and Kmart stores, cut costs and borrowed millions of dollars from CEO Eddie Lampert’s hedge fund to keep the business going. Sears invested in its online store and a loyalty program, Shop Your Way, in hopes of regaining its footing, but customers have yet to return in droves.

On Thursday, Sears reported its fifth quarterly loss in a row, and sales continued their downward trend. Sears also revealed that it will accelerate plans to shutter underperforming stores. Jason Hollar, Sears’ chief financial officer, said there’s no guarantee when the company can return to profitability.

Sears, which is based in the Chicago suburb of Hoffman Estates, Ill., traces its history back to 1886. Sears, Roebuck & Co. grew to become the largest retailer in America, competing with retail heavyweights of the day like Macy’s (M) and J.C. Penney (JCP).

The retailer was widely known for its catalogs, but that business fell out of favor by the 1990s. With the brick-and-mortar business also struggling, Kmart—controlled by Lampert’s firm, ESL Investments—acquired Sears in a $12 billion merger in 2005. Sears Holdings is now the 20th-largest retailer in the U.S., according to the National Retail Federation Opens a New Window. .

[ConservativeMind]

We really like their auto service alignment package: Lifetime 4-wheel alignments for under $200.

The tools, kitchen, laundry, and outdoor items are solid.

[MomwithHope]

Haven’t been in Sears in many years (10?)Less than 2 weeks ago I went because I saw online they had a pair of jeans I wanted at a good price. I saw lots of merchandise, really low prices on everything, few sales help and almost no customers except a few guys who looked like they may be getting 5 finger discounts. When I came back to the car I told hubby - I don’t know how they can stay open.

[Monterrosa-24]

“...Maybe if they put guns and ammo back in...”

Back in the ‘60s not only did department stores and Sears and Penney’s carry guns but Penney’s even carried handguns.

I’m sure some corporate Chicago weenies decided that the mega-trend in the United States was that the public was on an anti-gun trajectory. Now after we’ve had years and years of record gun sales Sears should see that it walked away from countless millions in sales. And aside from guns their stores have gone from big and interesting to smaller and way boring.

[Texan5]

In the ranch country my family is from, the only stores less than 30-35 miles away were a ranch/feed store, mom-and-pop grocery and butcher shop-the other nearest retail stores were in a small town-no chain stores and a very limited selection-the nearest “real” city with chain retailers was 60 miles away. The Sears catalog was the primary source of goods from clothing to tools and hunting/camping stuff-my parents, aunts, uncles ordered from the catalog all the time, and we kids begged for toys, clothes, etc we saw in it and just had to have...

The Sears catalog than was like the internet shopping all of us out here and in other rural areas do today-why drive 45-50 miles for clothes, etc when I can buy my jeans for work-and all else online for less money and save the gas in my 4x4 for work...

I don’t get why no one on the Sears management team jumped into internet sales in a big way when it first came about-bad marketing decision, and now it is probably way too late to remedy that...

[redfreedom]

IMO, over the last 15 years or so, they could have survived soley with their appliances, hardware (which includes tools), & automotive. These are things Walmart pretty much either stays away from or are weak at.

Our local store has more sales people than customers that stand around in clusters visiting, and when approached act annoyed.

I still think they can reorganize and be competitive, just get rid of the clothing, jewelry & all the things Walmart undercuts them with.

And as someone else mentions, bring back guns. With Trump as prez, the DNC dying, the MSM becoming more irrelevant every day, I think they could swing it. This is an area they could give Walmart a goon run for their money. More competition in the gun arena could send gun prices down.

[tuffydoodle]

The people they hire is also a problem. I went through there recently with my daughter, we were comparing mattress prices. The young man that worked in the mattress department had foul smelling dreds to his waist. The stench was overwhelming when he got too close. We couldn’t get out of there fast enough. We didn’t even consider staying long enough to think about a purchase.

[MeganC]

I agree. If they promised to sell only American made goods I’d shop there.

[R_Kangel]

I remember waiting every year for the Sears catalog to show up so we could dream about all of the amazing stuff out there. That was just a part of life before the internet and Cable TV. It was a really big deal when there was only one or two channels on Television.

[TheNext]

Sears has the best Levi Jeans collection anywhere. Especially the odd sizes. The Levi brand store only has even sizes.

Stock up on jeans before they go under. I know, Levi is communist but still the best quality.

[neocon1984]

Kenmore appliances used to be among the best values in the business, as were Craftsman tools. I bought Craftsman when I first bought a house in 1989. By 1995, I was replacing everything more sophisticated than a screwdriver.

[sodpoodle]

***Sears symbolizes America when America was great.I very sincerely hope that they can be saved.****

It’s kinda personal with this old lady. In 1962 I was introduced to my future husband by a friend - they both worked at Sears and she thought we would be a good match.

The marriage didn’t last as long as Sears - but would produce four great kids.

The cycle of life and retail:)

[Jimmy Valentine]

They need to go back to the beginning. Big catalogues (internet) and sales. Get rid of all but a few centralized stores. Their facilities costs are killing them.

[Organic Panic]

Kmart. Detroit shoved in to 10,000 sq ft

Sears. Commit brand suicide sending everything to China. What’s the point of buying Craftsman made in China when you can get Kobalt or Husky at a better price? All those companies use a Danaher contractor in China.

[apoxonu]

Yeah. Craftsman Pro. I own a few of both. The pro are the quality all Craftsman tools once were. The made-in-China not so much, about same quality as Husky from Home Depot.

[cyclotic]

I bought my wedding ring at Service Merchandise. I was trying to remember the name of the store. Thanks

30 years, it’s beat to heck, scratched bent and strong, just like my marriage.

[Organic Panic]

They still have their “pro” grade that MIGHT be made in USA.

Then again. How many young men even know how to fix things anymore??? I’m a machinist and accomplished mechanic. My buddy’s car died the other day in the parking lot in front of the shop. It was a brand new Jeep. I opened the hood and it was unrecognizable. If you can’t diagnose a new car without a high end computer code reader why bother buying a socket set? AND, with new cars... They just don’t break that much anymore. Even my 15 year old Isuzu rarely breaks.

I have another friend I visited a few months back. He’s a business type guru who can’t tell the difference between left hand and right hand screwdrivers. I stayed a couple nights and as a thank you I fixed a bunch of little things around the house like some loose pipes and curtain rods. I even sharpened his kitchen knives. He had NEVER used a knife sharpener and had no idea what the “thing” was that came with his gifted knife set from Germany. He didn’t even know you were suppose to sharpen knives. He was also amazed by the slip joint pliers I used to fix his sink faucet.

So... Yeah. Sears, Craftsman. They’re obsolete. Men that know the trades are going to stick to one stop shopping at Lowes or Home depot. Any city over 30,000 has both. Sears... Sears was located in the ghetto side of town in a ghetto infested mall. They tried opening one of the Sears Home Stores locally. The place looks like a thrift store.

[SkyDancer]

Guess it’s a throw away society. Why repair when a new one would be cheaper.

[luvbach1]

Are Craftmans tools made in China now?

Good question that I don't have an answer for. I once found a large Craftsman crescent wrench buried in the backyard of my townhouse, It was corroded, the chrome plating cracked and peeling. I took it in to a Sears store and immediately got a free replacement wrench.

[Organic Panic]

Nobody else did either. The Germans use odd-number-sized fasteners. Everyone else uses the Japanese standard of even-number through 14mm, then odd numbered in general from 15mm and up.

The first socket set I ever bought, straight out of high school, was at the Kmart in South Lake Tahoe (at the Y for anyone who knows). It was the Benchtop brand Metrinch tools. It predates the spline drive they are selling all over the place now. In my opinion the "universal" spline drive is garbage. Metrinch is awesome. I still have my 3/8 and 1/4 set. I have rebuilt my old beaters with these sets before I had a professional tool set. They are still on my top shelf of the tool chest. When I take a road trip, they are in my saddle bag or car tool set.

[flaglady47]

I live in a Western Suburb of Chicago, Downers Grove, IL. At the early turn of the century, Sears was the go to place for quasi prefab homes, bought through their Catalogs. Downers Grove (Sears corporate headquarters is in IL) has many of these early Sears Catalog Homes located within our Village. In fact, every year there is a tour of the Sears Catalog Homes, that is very popular. This is from the Sears on-line archives:

“What is a Sears Modern Home?

From 1908–1940, Sears, Roebuck and Co. sold about 70,000 - 75,000 homes through their mail-order Modern Homes program. Over that time Sears designed 447 different housing styles, from the elaborate multistory Ivanhoe, with its elegant French doors and art glass windows, to the simpler Goldenrod, which served as a quaint, three-room and no-bath cottage for summer vacationers. (An outhouse could be purchased separately for Goldenrod and similar cottage dwellers.) Customers could choose a house to suit their individual tastes and budgets.

Sears was not an innovative home designer. Sears was instead a very able follower of popular home designs but with the added advantage of modifying houses and hardware according to buyer tastes. Individuals could even design their own homes and submit the blueprints to Sears, which would then ship off the appropriate precut and fitted materials, putting the home owner in full creative control. Modern Home customers had the freedom to build their own dream houses, and Sears helped realize these dreams through quality custom design and favorable financing.

Designing a Sears Home

The process of designing your Sears house began as soon as the Modern Homes catalog arrived at your doorstep. Over time, Modern Homes catalogs came to advertise three lines of homes, aimed for customers’ differing financial means: Honor Bilt, Standard Built, and Simplex Sectional.
Honor Bilt homes were the most expensive and finest quality sold by Sears. Joists, studs, and rafters were to be spaced 14 3/8 inches apart. Attractive cypress siding and cedar shingles adorned most Honor Bilt exteriors. And, depending on the room, interiors featured clear-grade (i.e., knot-free) flooring and inside trim made from yellow pine, oak, or maple wood. Sears’s catalogs also reported that Standard Built homes were best for warmer climates, meaning they did not retain heat very well. The Simplex Sectional line, as the name implies, contained simple designs. Simplex houses were frequently only a couple of rooms and were ideal for summer cottages.

While browsing the Imagebank, you may see many houses that partially or even closely resemble a house that you own or have seen. Look closely, because the floor plan may be reversed, a dormer may have been added, or the original buyer may have chosen brick instead of wood siding. Plumbing may look like it was added after construction, or storm windows may appear on the house but not in the catalog’s illustration.

All of this and more are possible, because the Modern Homes program encouraged custom designing houses down to the color of the cabinetry hardware. The difficulty in identifying a Sears home is just a reflection of the unique design and tastes of the original buyer (see FAQs).

Construction

As mentioned above, Sears was not an innovator in home design or construction techniques; however, Modern Home designs did offer distinct advantages over other construction methods. The ability to mass-produce the materials used in Sears homes lessened manufacturing costs, which lowered purchase costs for customers. Not only did precut and fitted materials shrink construction time up to 40% but Sears’s use of “balloon style” framing, drywall, and asphalt shingles greatly eased construction for homebuyers.
“Balloon style” framing. These framing systems did not require a team of skilled carpenters, as previous methods did. Balloon frames were built faster and generally only required one carpenter. This system uses precut timber of mostly standard 2_4s and 2_8s for framing. Precut timber, fitted pieces, and the convenience of having everything, including the nails, shipped by railroad directly to the customer added greatly to the popularity of this framing style.

Drywall. Before drywall, plaster and lathe wall-building techniques were used, which again required skilled carpenters. Sears homes took advantage of the new homebuilding material of drywall by shipping large quantities of this inexpensively manufactured product with the rest of the housing materials. Drywall offered advantages of low price, ease of installation, and was added fire-safety protection. It was also a good fit for the square design of Sears homes.

Asphalt shingles. It was during the Modern Homes program that large quantities of asphalt shingles became available. The alternative roofing materials available included, among others, tin and wood. Tin was noisy during storms, looked unattractive, and required a skilled roofer, while wood was highly flammable. Asphalt shingles, however, were cheap to manufacture and ship, as well as easy and inexpensive to install. Asphalt had the added incentive of being fireproof.

Modern Conveniences

Sears helped popularize the latest technology available to modern homebuyers in the early part of the twentieth century. Central heating, indoor plumbing, and electricity were all new developments in home design that Modern Homes incorporated, although not all of the homes were designed with these conveniences. Central heating not only improved the livability of homes with little insulation but it also improved fire safety, always a worry in an era where open flames threatened houses and whole cities, in the case of the Chicago Fire. Indoor plumbing and homes wired for electricity were the first steps to modern kitchens and bathrooms. Sears Modern Homes program stayed abreast of any technology that could ease the lives of its homebuyers and gave them the option to design their homes with modern convenience in mind.”