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Thursday 23 March 2017 BUSINESS
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Hard times for Sears as retailer notes doubt about future
A. D’INNOCENZIO full disclosure that it’s high-
H. WEIKEL lighting actions to reduce
Associated Press risks. It also said that the
NEW YORK (AP) — Sears, a comments made in the fil-
back-to-school shopping ing were in line with “regu-
destination for generations latory standards.”
of kids, has said that after Lampert combined Sears
years of losing money that and Kmart in 2005, about
there is “substantial doubt” two years after he helped
it will be able to keep its bring Kmart out of bank-
doors open. But it also in- ruptcy. He pledged to re-
sisted that its actions to turn turn Sears to greatness,
around its business should leveraging its best-known
help reduce that risk. brands and its vast holdings
It was still a dramatic ac- of land, and more recently
knowledgment from the planned to entice custom-
chain that owns Sears and ers with its loyalty program.
Kmart stores, which has The company, which em-
long held fast to its stance ploys 140,000 people, an-
that a turnaround is pos- nounced in January said it
sible, even as many of its would close 108 additional
shoppers have moved on Kmart and 42 more Sears
to Wal-Mart, Target or Am- locations, and unveiled
azon. yet another restructuring
Sears has survived of late Shoppers enter the Sears department store at the Tri-County Mall, Wednesday, March 22, 2017, plan in February aimed at
in Springdale, Ohio. Sears, once the monolith of American retail, says that there is “substantial
mainly with millions in loans doubt” that it will be able to keep its doors open. cutting costs and recon-
funneled through the (AP Photo/John Minchillo) figuring debts to give itself
hedge fund of Chairman late Tuesday it lost more company that started in sota, where the available more breathing room.
and CEO Edward Lam- than $2 billion last year, the 1880s as a mail-order parking far outstripped the But it has to get more peo-
pert, but with sales fading and its historical operat- catalog business. number of cars in the lot, ple through the doors or
it is burning through cash. ing results indicated doubt At a largely empty Sears 85-year-old Jack Walsh shopping online for what
Sears Holdings Corp. said about the future of the store in St. Paul, Minne- and his 82-year-old wife, it’s selling. Sears, like many
Mary Ann, said they have department stores, has
shopped at Sears their en- been thwarted by a new
tire lives, buying items from consumer that has ripped
curtains and window treat- up the decades-old play-
ments to tires and tools. book that the industry has
“I bought my tools from relied upon. A plethora of
Sears and I’ve still got new online players have
them,” Jack Walsh said. also revolutionized the
The company known for market.
DieHard batteries and Sears has upped its pres-
Kenmore appliances has ence online, but is having
been selling assets, most a hard time disguising its
recently its Craftsman tool age. Its stores are in need
brand. But it says pension of a major refresh as rivals
agreements may prevent like Wal-Mart and Target
the sale of more business- invest heavily to revitalize
es, potentially leading to a stores. Sales at established
shortfall in funding. Sears and Kmart locations
“It’s a sad story. This is the dropped 10.3 percent in
place that created the first the final quarter of 2016.
direct to consumer retail, Industry analysts have
the first modern depart- placed the staggering
ment store. It stood like the sums of money that Sears
Colossus over the Ameri- is losing beside the limited
can retail landscape,” said number of assets it has left
Craig Johnson, president to sell, and believe the
of Customer Growth Part- storied retailer may have
ners, a retail consulting reached the point of no
firm. “But it’s been underin- return.
vested and bled dry.” The company has lost $10.4
Company shares, which hit billion since 2011, the last
an all-time low last month, year that it made a profit.
tumbled more than 13 per- Excluding charges that
cent Wednesday. Sears can be listed as one-time
tried to soothe investors’ events, the loss is $4.57 bil-
fears, saying in a post on lion, says Ken Perkins, who
its site that it remains fo- heads the research firm
cused on “executing our Retail Metrics LLC, but how
transformation plan” and the losses are stacked no
that news reports miss the longer seem to matter.q
