Sears Holdings lost $4.41 a share, $471 million dollars in total. That is a truly astounding figure. Where is all of the money going?
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The "brain trust" at Hoffman think that the way to profits is to get rid of your best employees, hire teenagers to run important functions (we have a 16 year old doing our cash office), cut hours, send too much merchandise to the stores, send merchandise no one wants, don't give raises (for the last 8 years), give no incentive to do a good job because you will not advance, hassle customers for SYW or credit card sign-ups (and boy do they complain), have online orders packed in detergent boxes because they won't buy supplies, no toilet paper or soap in the bathroom (not in the budget) etc.
And then have DM's belittle, berate, and generally make the employees feel like it is all their fault for the company failing. People are quitting in droves. New hires last less than a month (after being paid for a weeks worth of computer training) and Sears/Kmart pays almost $2 less per hour than any other retailer in my area. Not a company anyone wants to be a part of or shop at.
Pension liability.
Yeah, it was so good that they have cut hours to less than 25 for full timers (even though they say 32) and part timers are getting less than 10 in our store. People are leaving in droves and no one to take their place. Today at 9:30 they sent most people home to save on labor. Just a manager, a cashier, and two floor employees for the whole store.
How does this company keep going?
It is rather amazing how SHLD lost nearly half a billion dollars in a quarter and somehow they beat expectations and had a very positive spin in their earnings release.