PSA: Sears notified SEC their survival is doubtful

[Lanny]

If you are a Sears customer, or do business with them, they notified the SEC today that their ability to continue in business is doubtful.  I forget the words they used in that filing, but it is not looking good for them to continue in the Retail business.

[Guest]

The Era of the Department Store is ending.

 

It was a good run.

[Lanny]

The Era of the Department Store is ending.

 

It was a good run.

 

Sears (and probably K-Mart) are not up to competing with Wal-Mart, Target, and other successful  brick and mortar chains. To say nothing of Amazon and other Online stores.  Sad, but it is not  the first huge company to fail, because their Management Team made bad decisions.

[Rachel]

Our Sears was an anchor store in the mall, it closed a couple years ago.

 

I'm shocked our Kmart is still open, it's been languishing for years.

[Guest]

Sears (and probably K-Mart) are not up to competing with Wal-Mart, Target, and other successful brick and mortar chains. To say nothing of Amazon and other Online stores. Sad, but it is not the first huge company to fail, because their Management Team made bad decisions.

Sears has treated their customers like carp for at least 35 years. It is amazing how long they made it--a testament to brand loyalty and a decent arrangement between catalog/online and IRL stores.

 

I remember getting the catalog and looking and the women's section. Garter belts and girdles. 😱

[LucyStoner]

I recently used a Groupon at Sears Automotive to get the alignment on my minivan done.  

 

I had an hour to kill and not a lot of places to go, so I spent most of that time wandering around the Sears store upstairs.  It was a total ghost town.  There were very few shoppers and even then it was hard to get any help.  I asked a clerk where the bathroom was, and she couldn't tell me/didn't know.  I was there longer than expected because no one bothered to call me to tell me my car was ready as they had promised.  

 

I did spend about $140, but except for one pair of jeans for my ever-lengthening son, that was all on steeply discounted Land's End merchandise- Squall Parkas for $25/ea, soccer shirts for $6 each.  The clerk took an amazingly long time to check me out.  Most of the departments were empty.  Two clerks were most assuredly under the influence of something.  

 

The automotive shop was busy and had customers, but they were understaffed, and there was only one competent service order writer so that one guy had to stop helping people and help his co-workers help people.  Again and again.  This meant that I waited there for a pretty long time just to hear them say that the ball joints were fine, the timing belt should probably be done in 10K and get my damn key back. Also, my car smelled a bit of cigarette smoke when I got it back.  

 

I'm rather amazed they are still open at this point. The KMart (same company) closed some time ago and is now a Hobby Lobby and an Asian supermarket.  

 

[Pink and Green Mom]

The Sears in my mall sold over half of its square footage and became a Whole Foods instead.  The Kmart in our town is a ghost town and really, really bad.

[mamaraby]

Sears (and probably K-Mart) are not up to competing with Wal-Mart, Target, and other successful brick and mortar chains. To say nothing of Amazon and other Online stores. Sad, but it is not the first huge company to fail, because their Management Team made bad decisions.

Yup.

 

http://www.usatoday.com/story/money/2017/03/22/sears-holdings-ceo-eddie-lampert/99487518/

http://www.businessinsider.com/warren-buffett-predicted-fall-of-eddie-lampert-sears-in-2005-2016-12

[JFSinIL]

My dd's first ever real job was at our local Sears.  She was just 16, and hired as a cashier/sales associate.  She lasted about 18 months before quitting - her hours kept being cut, since she wasn't signing up as many customers for a Sears card as some of her co-workers.  See, dd refused to make up social security numbers to get the forms filled out - most folks do not carry or have memorized their ss number, which is asked for on the application (at least it was 7 years ago).  Co-workers just blithely filled in any old number to get the form completed.  No matter that the customer would never get a Sears card with a fake ss number - the cheating sales associate still got credit for signing someone up.  And got more and better hours.   We thought less of Sears after that.

 

 

 

Edited March 23, 2017 by JFSinIL

[Audrey]

The writing's been on the wall for Sears for about a decade.  Too bad, really, because it was the only store with rural pick-up depots in Canada.  They closed the one in my town about 2 (?) years ago.  It was nice to be able to order c.o.d. and pick it up locally, but alas... all things must end, and Sears' time is past. 

[Lady Florida.]

I'm amazed that our Sears is still open. It's always been one of their lower level stores yet somehow it's managed to not be among the ones closed every time they announce store closings. Any time you drive by during store hours there are hardly any cars there. Some locals speculate it's a write off for Sears and they might be right.

[Word Nerd]

I knew when they recently announced they were selling the Craftsman line that it was essentially the nail in the coffin.

[LucyStoner]

Anyone sitting on a Sears gift card should spend it right away.  When Babystyle and The Right Start went out of business, I know a lot of people lost their gift card balances.  Once they were in clearance/closeout mode, they stopped honoring them.  I had a $200 Right Start gift card that I used the last day they took them. 

 

But who gives Sears gift cards?  Therein lies the problem.   :lol:

Edited March 23, 2017 by LucyStoner

[Starr]

My first job outside of babysitting was at Sears when I was 16. People were still ordering from the catalogue. Many memories. 

[El...]

Our Sears store is strange.  Half the light bulbs are out, really half the bulbs per light unit, and all the lights around the edges, as if they are trying to deliberately darken the store to save money. 

 

I got the kids big winter coats there last week at a huge discount.  Go, me!  I suspect I'm part of the problem.  I spent $12 on two coats.

[Χά�ων]

I will miss Kmart. My son had a massive head as a toddler and the only shirts that fit him were whatever the kids brand only kmart sold at the time.

 

When many kmarts were turned into sears stores many years ago I found everything extremely over priced. I could not believe the prices, above and beyond what similar stores would charge.

[Arcadia]

We used to frequent Sears because of the Lands End sales and because of their young kids guarantee/warranty program which was useful for jeans as kids gets holes in their toughskins toddler jeans often when they were toddlers. We managed to get good sales for Dockers chino pants, vests and blazers at a nearby Sears Outlet store, like $4 and under each.

 

We'll probably drop by the Sears outlet store this weekend as the staff there are very friendly and helpful every time we went there to hunt for boys and men's jeans and pants.

[Guest]

I recently used a Groupon at Sears Automotive to get the alignment on my minivan done.  

 

I had an hour to kill and not a lot of places to go, so I spent most of that time wandering around the Sears store upstairs.  It was a total ghost town.  There were very few shoppers and even then it was hard to get any help.  I asked a clerk where the bathroom was, and she couldn't tell me/didn't know.  I was there longer than expected because no one bothered to call me to tell me my car was ready as they had promised.  

 

I did spend about $140, but except for one pair of jeans for my ever-lengthening son, that was all on steeply discounted Land's End merchandise- Squall Parkas for $25/ea, soccer shirts for $6 each.  The clerk took an amazingly long time to check me out.  Most of the departments were empty.  Two clerks were most assuredly under the influence of something.  

 

The automotive shop was busy and had customers, but they were understaffed, and there was only one competent service order writer so that one guy had to stop helping people and help his co-workers help people.  Again and again.  This meant that I waited there for a pretty long time just to hear them say that the ball joints were fine, the timing belt should probably be done in 10K and get my damn key back. Also, my car smelled a bit of cigarette smoke when I got it back.  

 

I'm rather amazed they are still open at this point. The KMart (same company) closed some time ago and is now a Hobby Lobby and an Asian supermarket.  

It might have been the same store I was last in, and for the same reason--tall skinny boy jeans. 

 

That place just *smelled* bad.  I couldn't wait to get out of there.  

Same with the downtown Seattle Olde Spaghetti Factory, which is also closing.  We've been big fans of TOSFactory for countless years--since I was a teenager in Denver--and I'd take my son to the two in our area.  Last time we were down there, about 10 years ago, we both said, "Welp, we never have to eat here again."  The FOOD was fine, but the building smelled ... horrible.  People are moaning that it is being torn down but it's like, did you ever go IN that place?  

 

 

[Liz CA]

If a clerk cannot tell you where their bathroom is....something is really wrong. Perhaps they employees have already given up and morale is very low.

[Liz CA]

Our Sears store is strange.  Half the light bulbs are out, really half the bulbs per light unit, and all the lights around the edges, as if they are trying to deliberately darken the store to save money. 

 

I got the kids big winter coats there last week at a huge discount.  Go, me!  I suspect I'm part of the problem.  I spent $12 on two coats.

 

This makes me wonder if I should check one out. Come to think of it - I have to look up if there is one in our small mall. Sounds like Land's End merchandise is being given away.

[Liz CA]

The Sears in my mall sold over half of its square footage and became a Whole Foods instead.  The Kmart in our town is a ghost town and really, really bad.

 

I'd rather have a Whole Foods store than Sears any day. :laugh:

[LucyStoner]

I remember reading the Sears catalog when I was a kid and imagining how I would decorate my bedroom if I had money for things like curtains and sheets. I loved that catalog.  

[Laura Corin]

If a clerk cannot tell you where their bathroom is....something is really wrong. Perhaps they employees have already given up and morale is very low.

 

I worked at Emporium in San Jose not long before it went under.  I could have told you where the loo was, but morale was low, really low.  The staffing was so thin that I once stood for nine hours straight without a pee break during one of the frantic sales the shop held.  I called and called for someone to take my place, but no one came.  One night, one of the assistants just picked up the money tray from the cash register that she was cashing up and, in full view of the security cameras, walked out of the shop door.

 

If you go to Sears, be nice to the staff.  They are probably desperate.

[kewb]

I am not surprised. They have been struggling for years. The purchase of land's end just meant they ruined that brand by lowering it's quality instead of lifting themselves up.

I periodically shop at Sears for inexpensive basics. The store isn't a ghost town but it is never very crowded. Even when I was kid many decades ago the store was never crowded.

I do most of my shopping online so I admit that I am part of the problem department stores are having.

[G5052]

We have a Sears in town, but we only go to the Land's End section.

 

We stopped buying tools and appliances there some time ago. When I bought a washer and dryer in February, I went to Lowe's.

[J-rap]

A lot of department stores are struggling.  Even our state's big, landmark downtown Macy's closed this month.  I will miss it!   :sad:

[MorningGlory]

Anyone sitting on a Sears gift card should spend it right away.  When Babystyle and The Right Start went out of business, I know a lot of people lost their gift card balances.  Once they were in clearance/closeout mode, they stopped honoring them.  I had a $200 Right Start gift card that I used the last day they took them. 

 

But who gives Sears gift cards?  Therein lies the problem.   :lol:

 

My mom gives Sears gift cards. To me (???). So thank you for this reminder! I need to try to spend them as soon as possible...but Sears isn't convenient for me (45 minute drive one way), so it takes planning and scheduling to even go. 

[Guest]

Anyone sitting on a Sears gift card should spend it right away. When Babystyle and The Right Start went out of business, I know a lot of people lost their gift card balances. Once they were in clearance/closeout mode, they stopped honoring them. I had a $200 Right Start gift card that I used the last day they took them.

 

But who gives Sears gift cards? Therein lies the problem. :lol:

Daggummit. I gave my niece a Sears gift card for her wedding last fall. Guess I'll have to get in touch with her and tell her to spend it NOW.

[vonfirmath]

If you are a Sears customer, or do business with them, they notified the SEC today that their ability to continue in business is doubtful.  I forget the words they used in that filing, but it is not looking good for them to continue in the Retail business.

 

We got my son's last pair of glasses elsewhere because we do not believe Sears to be continuing in business throughout 2017 to honor the warranty.

Edited March 23, 2017 by vonfirmath

[vonfirmath]

We used to frequent Sears because of the Lands End sales and because of their young kids guarantee/warranty program which was useful for jeans as kids gets holes in their toughskins toddler jeans often when they were toddlers. We managed to get good sales for Dockers chino pants, vests and blazers at a nearby Sears Outlet store, like $4 and under each.

 

We'll probably drop by the Sears outlet store this weekend as the staff there are very friendly and helpful every time we went there to hunt for boys and men's jeans and pants.

 

Yes. I grew up with most of my clothes purchased at Sears Outlet. My dad's tools were all Craftsman.  But the Craftsman brand stopped meaning quality a LONG time ago. Their appliances have not been good either for as long as I was an adult and they stopped the young kids guarantee before we could use it too.

[vonfirmath]

It might have been the same store I was last in, and for the same reason--tall skinny boy jeans. 

 

That place just *smelled* bad.  I couldn't wait to get out of there.  

Same with the downtown Seattle Olde Spaghetti Factory, which is also closing.  We've been big fans of TOSFactory for countless years--since I was a teenager in Denver--and I'd take my son to the two in our area.  Last time we were down there, about 10 years ago, we both said, "Welp, we never have to eat here again."  The FOOD was fine, but the building smelled ... horrible.  People are moaning that it is being torn down but it's like, did you ever go IN that place?  

 

Interesting. The last time we were at the Seattle Olde Spaghetti Factory was about 10 years ago too and I don't remember any smell.  I saw recently they were closing it down and was sad. We didn't get to go often because it meant going into Seattle but I loved it. The prices, the food, the ambiance!

[vonfirmath]

A lot of department stores are struggling.  Even our state's big, landmark downtown Macy's closed this month.  I will miss it!   :sad:

 

JC penny's is closing a lot of locations as well.

 

[Lanny]

We got my son's last pair of glasses elsewhere because we do not believe Sears to be continuing in business throughout 2017 to honor the warranty.

 

Our family suggests that you contemplate purchasing Online from ZenniOptical.com  My wife and DD are *extremely* happy with the eyeglasses they ordered from Zenni and I doubt that there are many optical laboratories in the world with that kind of extreme Quality Control.  We highly recommend ZenniOptical.com  Be sure you have the "P.D." correct. And, that your prescription is correct.

 

You are probably correct to wonder whether or not they would be around to honor the warranty...

[FaithManor]

Penney and Macys are struggling here as well.

 

Kohls is doing quite well.

 

I think that for me Target and Kohls being stand alone is a big boon. I am too busy, too heavily scheduled to park a bazillion feet from an entrance and then wander the mall looking for what I need. I think I am not alone in this. Additionally, here in Michigan many malls have high crime rates which discourages shoppers.

 

Sears lowered the quality of their craftsman tools plus their Kenmore brand. These were brands that people used to be quite loyal to and drew big bucks. People would shop for the tool or appliance, and for the sake of convenience then grab their towels or kids jeans while there. But if you lose the people that were brand loyal because you cheapen up in order to increase profits massively in the short term, you shoot yourself in the foot in the long term once your customers abandon ship.

 

I get my 28x32 skinny boy jeans/pants from Old Navy, American Eagle, or Levis at the outlet strip mall. Often I have to shop online due to the fact that these get picked over very quickly. Moguls doesn't often have them in the store, but sometimes online so again my business ended up elsewhere. And there really is not any point of going to Penney, Macy, or Sears to wander around and hope to still find a pair on the rack. It is a waste of my time.

 

I think that if these types of stores are going to survive, they need to be independent of malls so more convenient for the fast shopper, and then better stocked...pretty much with some of everything that their online warehouses provide or turn some of their department stores into actual regional warehouses so they can advertise faster shipping times. In this way, they could compete better with Amazon.

[Lady Florida.]

 

Sears lowered the quality of their craftsman tools plus their Kenmore brand. These were brands that people used to be quite loyal to and drew big bucks. People would shop for the tool or appliance, and for the sake of convenience then grab their towels or kids jeans while there. But if you lose the people that were brand loyal because you cheapen up in order to increase profits massively in the short term, you shoot yourself in the foot in the long term once your customers abandon ship.

 

 

I agree. The decline of Sears started years ago, before online shopping became a normal thing and when other department stores were still doing well. The quality declined. They stopped standing behind their products. They were once famous for standing behind Craftsman tools but slowly cut back on what they'd replace and why they'd replace it. It was a gradual decline in quality and service so that when the time came to compete with Amazon and even other B&M department stores with an online presence, they were already behind.

[Just Kate]

So, what does this mean for Land's End???

[FaithManor]

So, what does this mean for Land's End???

I think Land's End will be okay and go back to what they used to be. A lot of people still order from them. They just need to weather the storm of extracting themselves from association with the Sears name.

[dirty ethel rackham]

My dad is rolling over in his grave.  He worked for Sears for over 30 years.  I grew up on Roebuck's jeans (always too short because nobody made slims back then.)  We had Kenmore appliances.  After college, I worked for them for several years.  After my first child was born, I went back to them because they offered me a part-time systems analyst job and it ended up being in my dad's old department and I worked with many of his old co-workers.  Most of my co-workers took time off to come to my dad's funeral. 

 

I am so bummed that I forgot to unload my Sears stock from my profit sharing from back then.  It is likely not worth much.  It is in an old account with my maiden name on it. 

[MrsRobinson]

My mom gives Sears gift cards. To me (???). So thank you for this reminder! I need to try to spend them as soon as possible...but Sears isn't convenient for me (45 minute drive one way), so it takes planning and scheduling to even go.

You can shop Sears online. I needed a specific color shoe for a wedding and I found them at sears.com of all places. No problems with the online ordering or shipping process.

[vonfirmath]

Our family suggests that you contemplate purchasing Online from ZenniOptical.com  My wife and DD are *extremely* happy with the eyeglasses they ordered from Zenni and I doubt that there are many optical laboratories in the world with that kind of extreme Quality Control.  We highly recommend ZenniOptical.com  Be sure you have the "P.D." correct. And, that your prescription is correct.

 

You are probably correct to wonder whether or not they would be around to honor the warranty...

 

Zenni is exactly where we went.  My sunglasses were purchased there and we got spare pairs for my son last year (to take to camp). The nice thing is: The place we went to the eye doctor didn't even TRY to sell us glasses. Their glasses were really pricy. (I looked.) ANd they had a tiny kid section. Even less than Zenni (and my son was not excited about Zenni's options)

[Serenade]

The Era of the Department Store is ending.

 

It was a good run.

True.

 

I'm sad, though, because I like department stores. The demise of the anchor store will also lead to the demise of the mall.

 

Yep, it was a good run.

[LucyStoner]

I agree. The decline of Sears started years ago, before online shopping became a normal thing and when other department stores were still doing well. The quality declined. They stopped standing behind their products. They were once famous for standing behind Craftsman tools but slowly cut back on what they'd replace and why they'd replace it. It was a gradual decline in quality and service so that when the time came to compete with Amazon and even other B&M department stores with an online presence, they were already behind.

 

Yes, I bought a Kenmore vacuum cleaner in 1999 that was an absolute piece of junk and a Craftsman drill that didn't last.  My next vacuum wasn't a Kenmore.  My next drill was (is) a DeWalt. 

 

The last major purchase I made at Sears were appliances when we closed on our first home in 2007.  The refrigerator was disappointing.  The W/D have both lasted ok are are running right now, but the delivery people dinged our walls and damaged our flooring.  

[Farrar]

Die, Sears! Die!  :hurray:

 

I'm sorry. I'm sure people are losing jobs and I should be more sympathetic, but I have never in my life been so disrespected by a company. Called names and hung up on and cheated by their customer service. They were a horrible, spiteful, evil company that deserves to go down.

[FaithManor]

When it comes to appliances, we have purchased Home Depot scratch and dent with good customer service as well and willing to definitely back their product lines.

[Alessandra]

I went into a Sears Hardware store, planning to replace a few items from a set of screwdrivers. Half empty shelves, only sets. And prices were higher than for similar items at local hardware store, or tool speciality store, or big box store. So I left, bought nothing.

 

Contrast that with my trip to a professional type tool and equipment store. I had one itam in mind, left with several bags full of stuff, because they had barrels of useful tools on sale, great selection, great prices.

 

Sears doesn't seem to realize that even one bad shopping experience can lose a customer permanently. I value my time too much to waste it on fruitless hunts for common items.

[Liz CA]

I think Land's End will be okay and go back to what they used to be. A lot of people still order from them. They just need to weather the storm of extracting themselves from association with the Sears name.

 

Honestly, I could not understand why Land's End associated themselves with Sears in the first place. If they wanted to have store presence, I would have thought they pick something like Macy's or at least Mervyns (which sadly are also gone from my part of the world at least). Land's End was everything Sears was not, excellent customer service and a matching product quality.

Edited March 23, 2017 by Liz CA

[G5052]

 

I think that if these types of stores are going to survive, they need to be independent of malls so more convenient for the fast shopper, and then better stocked...pretty much with some of everything that their online warehouses provide or turn some of their department stores into actual regional warehouses so they can advertise faster shipping times. In this way, they could compete better with Amazon.

 

Kohl's and Target are 30 minutes away, but Sears is 5 minutes away in a strip mall next to Safeway.

 

It's always busy because there are so few places to buy clothes here, but we only go to the Land's End section.

[Word Nerd]

Honestly, I could not understand why Land's End associated themselves with Sears in the first place. If they wanted to have store present, I would have thought they pick something like Macy's or at least Mervyns (which sadly are also gone from my part of the world at least). Land's End was everything Sears was not, excellent customer service and a matching product quality.

Mervyn's is gone everywhere, unfortunately. They went bankrupt about 10 years ago. I liked that store.

[Bluegoat]

I can't say I'm surprised.

 

It felt to me like somehow they'd lost their niche.  I don't know that I'd agree the problem is department stores more generally - The Bay seems to be doing well, and Nordstroms, and then some of the cheaper places like Walmart. 

 

Sears just seemed badly managed, poor products, and it always seemed like their buyers had really bad taste.

[TechWife]

So, what does this mean for Land's End???

I don't know. They've been trying to sell the brand for quite a while now. Maybe they will find a buyer.