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What's wrong with Sears?

7.2K views 24 replies 18 participants last post by  lawgman  
#1 ·
I was recently in Toronto for business and stopped in the large Sears store at the Eaton Centre, which is a nice shopping mall in the downtown area.

Anyways, I was amazed how much nicer Sears stores in Canada are compared to those in United States, where you can't even purchase a decent suit these days. The quality of brands was impressive -- in fact, some of the brands are found at "upscale" department stores such as Macy's in the States.

I recall reading an article in the Wall Street Journal recently that described the struggles of Sears stores in the United States. It seems to me they should model their Canadian division if they want to do well.

I know when I visited the Sears flagship store in Chicago in November, the selection was pathetic. I couldn't find a 100% wool suit or a decent shirt or tie in the whole store. Yet the Sears Canada stores have Calvin Klein, large Lands' End selections and other brands that are viewed as more upscale.
 
#4 ·
Land's End and Calvin Klein seem to be standard for Sear's and both are good value for the money if you can get them cheap (I say that in the nicest possible way, as I have clothes from both labels.) But Sears has also become a dumping ground for brands that have, tragically, become junk; brands that were once respectable, but are now ridden with shoddy construction and poor quality fabric. The Sears locations in the U.S. seem to be dominated by the latter, although you can find a limited selection of Land's End and CK stuff on the shelves. I occasionally pick up socks and Levi's there, but that's about it.
 
#7 · (Edited)
I don't think the store located in the Loop is Sear's "flagship" store. The 'flagship' store used to be the old Tower store on Homan. That is were it's corporate offices, catalog warehouse and multi-floor retail store. The original Loop store closed years ago. The current one is a shade of that store.

I haven't shopped at Sears since they killed the 'Big Book'.
 
#8 ·
Pleasantly suprised here out West

I have not been to the Flagship store here in Vancouver (previously the venerable Eatons store) but recently stopped to look around at our local Sears in the 'burbs. I was pleasantly suprised. Previously I only entered Sears to get to the Mall or get the kids photographed.

I assume it is new, but there is now a Land's End Shop in the Canadian Sears and best of all, virtually same prices as the US. Yes, I will give credit where credit is due, after all I railed mercilessly about high Canadian prices in another thread.

Good selection of chinos, jeans and casual shirts. No dress shirts though that I could find.

One problem with retailers here in Canada like Sears and HBC (Hudson Bay Company) is that there is never anyone around to help.

Meagre and lower quality selection of dress clothes though - HBC is better but even they are still short of AAAC standards. Downtown Vancouver's HBC has Samuelsohn as the one exception.

What did your flagship in TO store have in terms of suits and the like??
 
#9 ·
Yeah, I can't even find shoes made with "real leather" either. Also though, Macy's quality varies from store to store. For instance, the Macy's in downtown St. Paul is quite low end, while the Macy's at Nicolette Mall 15 miles away has its own Louis Vutton section, and other high-end and/or expensive things.
 
#12 ·
Yeah, I can't even find shoes made with "real leather" either. Also though, Macy's quality varies from store to store. For instance, the Macy's in downtown St. Paul is quite low end, while the Macy's at Nicolette Mall 15 miles away has its own Louis Vutton section, and other high-end and/or expensive things.
Really, that's interesting. Every location that I've gone to in the DC area is pretty low-end.
 
#13 ·
Sears might be worth more dead than alive.
There's no proof (as far as I know), but some speculate that Eddie Lampert (ESL Holdings) is deliberately running the stores into the ground, having figured out how much cash he can pull out in the process.
 
#14 ·
Sears US tried to take over Sears Canada

I don't recall how it played out, but Sears US tried to take over Sears Canada (in which it already held a significant - if not controlling - interest) about two years ago. It was a really, really nasty take-over battle with a few hedge funds digging in really hard.
 
#15 ·
i read an article in conde nest at my barbers last week about the man behind the k-mart sears conglomerate. What it boils down to is he's a megalomaniac micro manager with no retail experience. he's driven away all of his senior management numerous times and it's only a matter of time before the whole house of cards tumbles. i just hope they spin off LE before they go.
 
#19 ·
Really, that's interesting. Every location that I've gone to in the DC area is pretty low-end.
DC area Sears are oriented primarily toward the immigrant community, and as such focus heavily on affordable, durable clothes. Not a place to go to get a suit, but if you're repairing the car, Sears is where you'd get the rugged overalls.

Speaking of which, their tools section slipped my mind; their hardware division is almost a separate chain, and yes, it's one of the best places to get tools, all of mine come from Sears.
 
#20 ·
I've been in that particular Sears in Toronto more than a few times. I keep trying to find something worth purchasing, and I always fail...until I hit the socks area where I can usually find a nice pair on sale. So Sears is essentially a sock store for me. Yes, they have suits and dress shirts on sale too, but the quality of those items leaves a lot to be desired.
 
#21 ·
My Gawd! If Sears crumbles, where will I buy tools?!
I recall reading recently (was it in the WSJ?) that Sears may be broken up and its still-viable parts sold off.

Their Craftsman tools remain popular and have a very good reputation--three of my brothers, who use the tools professionally and buy them themselves (they are partners in an independent small business) regard them highly.

So presumably the tools would still get made (one hopes at the same quality level & backed by the same guarantee) and sold, but by some spinoff of a broken-up Sears.
 
#22 ·
DC area Sears are oriented primarily toward the immigrant community, and as such focus heavily on affordable, durable clothes. Not a place to go to get a suit, but if you're repairing the car, Sears is where you'd get the rugged overalls.

Speaking of which, their tools section slipped my mind; their hardware division is almost a separate chain, and yes, it's one of the best places to get tools, all of mine come from Sears.
I was talking about DC area Macy's
 
#23 ·
Sears might be worth more dead than alive.
There's no proof (as far as I know), but some speculate that Eddie Lampert (ESL Holdings) is deliberately running the stores into the ground, having figured out how much cash he can pull out in the process.
I wouldn't bet against eddie anytime soon. The Craftsman line, the real estate and all the hother holdings makes the sears book value very impressive. Look for a turnaround. Look for a buy back and buy. I plan to buy in at somepoint, the purchase some calls, and wait till it its 500 per share.
 
#25 ·
Sears in Canada is nothing to write home about. There are a handfull of Sears that started life as the new Eatons stores a few years ago. These were all more urban locations or destination mall locations and the stores were completely redun. When Sears decided to do away with the Eaton name (and rename them Eatons), they did keep a hand full of nicer brands for these "tourist" or "destination" loctions. So, going in to a sears in the Eaton Centre in downtown Toronto is IMHO nothing like the ones in the burbs.