Just wanted to find out if any corporate people are on this board who can give us some real, truthful information about this company. We hear so much from our DM and then we hear something else from our SM and then something else from the boards. Someone give us the truth please. I think it is the moral and ethical thing to do. At the store level it seems like everything (profits, staying open, being a store that matters) is dependent on metrics, how many SYW rewards we sign up, how many credit card or service agreements we sign up, how much product we set out, how fast the truck is unloaded. All these seem to matter more than customer service, products people want to buy and making the customer (sorry member) matter. What is the real deal
9 replies (most recent on top)
I work for Sears, how can i get My 401(k) without quiting the company?
For me its not so much knowing when the company will go under for good (Soon). But I always wonder why they keep rolling out all of these new ideas and programs while cutting hours and employees. Some of the ideas might actually work if you had a fully staffed store but with the hours and the number of employees they have make sure the ideas will never work.
Also, some of the departments and programs that I see at corporate either do the same thing or are useless in the real world or just waste money and time. Why dont they cut the fat at corporate and make the store work instead of being top heavy and losing money. If they did this this company might even make a profit
The Diehard tires will probably be sold with huge points back, with fine print that they can be used only on purchases at Sears.
It really doesn't matter to me much because I have a front row seat to a train wreck. I work in SAC right now. I only joined up because I wanted to have a little more diverse background in mechanics. I have a Bachelor's degree in Science and twenty year of experience in my field. I also have a wife who does not want to move. The good thing is that I can afford to work for SEERZ because there isn't much for pay. I don't play 401K games. I invest in a very different way and I have made that work for me. I have no debt and that helps a great deal. I just love how SEERZ will not take a third party credit card if you use your associate discount so the workaround to that is to buy a gift card for the balance due. That's funny.
Now all of my vehicles have been fixed at a discount by a very good tech. I have a sh--load of SYW points. I would buy a bunch more tools but most of the newer Craftsman tools are chinee junk. So it goes. The new diehard tire is a joke at the price point. All it is is a Kuhmo KR21. We haven't sold any yet because the price point is too high.
I am doing this because I actually helping customers. I have wrenched on so many different types of things over the years that I am just sick of it so I don't mind paying if the tech is borderline genius as our master tech is and has OCD. He WILL do a top notch job. People come in everyday with emergencies that need to be fixed RIGHT NOW. Well, we have people with appointments that outrank your emergency so if we can help you we will. The full line store manager had her car towed in just two mornings ago with no appointment. Well, so? Same thing. Don't try to rush us.
The bottom line is this, SAC associates will have no problems finding other jobs in that industry because no one wants to do it and not many people can. Every day I have to turn away customers because we are booked solid and we can't any more techs or CSA's. I heard a rumor that SAC might be sold to AutoZone but it is only a rumor.
I have to agree that Sears is not going to recover but what I meant was that they will keep the most profitable stores open the longest. Now, now go get your car fixed up because you don't need a car payment. No one needs a car payment.
Here is the truth, only a very few people will know when bankruptcy proceedings begin and everyone else when it actually does, no one is going to say whats going on because its their job not to. SHLD looses about 5 million dollars a day operating , they are about 13 billion in debt and have remaining assets worth about 10 billion that includes everything inventory , buildings , lights etc that means they are 130 % debt to worth. It is no longer about customers and market share of products its about dragging it out so they can figure out how to liquidate without a ton of law suites and getting in legal trouble. They are borrowing money against inventory at this point at a rate of 8%. The idea that profitable stores will stay is a complete falsehood when they liquidate it will be everything. As an employee you need to do two things 1. if you have stock sell it and move your 401k to your own IRA 2. Find another job because when it comes it will be quick and they will not care who you are or how long you have been there.
This is a good read.
http://investorplace.com/2016/08/sears-holdings-corp-shld-stock-wetting-bed/
The answers you seek are available through all of the quarterly financial reports that are available by doing a simple web inquiry. However, because of the complex structuring of SHLD (Sears Holdings) it may seem a bit hard to decipher. I have been in the corporate business world before for a very successful company, think green and yellow and tractors, so I know of that which I speak. I decided to take a position with Sears but not in corporate but still in a management capacity.
It is sparkling clear that the SHLD has been and is liquidating it's most valuable physical assets for operational cash. One of those assets has been prime real estate and a brand or two so far. The reason this being done is because of funding liabilities such as the retirement benefits of long time employees who have now retired, the higher cost of overhead such as leases, insurances and healthcare for those who were in early. That list can go on.
You speak of metrics in terms of store operations but that is not the correct way to look at how the organization as a whole is structured. Let's start at the top of the organization with the CEO who Edward S. Lampert. He came by that position by becoming a majority shareholder a little over a decade ago. In other words, SHLD has no board of directors that actually have any clout. You love him or hate him what really is is a hedge fund manager and in this case ESL holdings.
So what is happening with Sears itself? From my personal observations there are operational issues on a store level. Antiquated POS systems running MS-DOS with various Windows sub-components, lack inventory control, lack of correct pricing, lack of store maintenance, lack of products people want to buy and a general lack of associate morale. But that is only part of the problem.
The real problem is lack of sales and to certain degree the Internet age had much to do with that. The Amazon's of the world are efficient machines who can be profitable at low margins. Before the WWW boom everyone was reliant on a brick and mortar store with employees that would stay for many years and become knowledgeable and develop trust with customers. There is a cost to doing business that way and it is higher overhead. While Sears does have a decent online presence it still has to fulfill it's online orders and this is done at the store level rather than from a centralized shipping point like say Seattle and it is very inefficient.
For the sake, attempting to answer your question, if you were losing money on anything that was constantly losing your money, what would you do. You would look for any cash value and that only comes in the form of an offer to buy. Sears owns many of it's stores while it leases others and that changes the dynamic. Is the store profitable and do we own it? i.e., We own own this store and it is profitable. We keep that one. We own this store and it is not profitable, We look for a buyer. We lease this store and it is profitable. We keep it. We lease this store and it not profitable. We close and liquidate before the lease expires. It is as simple as that.
A lot of people hate Fast Eddie but he has a lot of money in the game so he does not want to lose. However, I am sure that in amongst all of the various loans that Eddie has made from his ESL hedge fund to SHLD that he intends to remain whole and have ESL profit. We don't know what that terms are on those loans. Eddie doesn't say much about what he is doing but his actions do speak. He is going to close more stores because he has to. Only the most profitable Sears stores will remain and this is so because right now Eddie is underwater on his majority shareholder shares.(or so I have read) The only way to raise share price is to start closing stores, spinning off brands and business units for cash.
I have that answers your questions although I know it quite basic.
I agree. Doesn't matter how those metrics are balanced. What I know is I can go out on the floor and talk to customers. sales go up in that dept. SYWR ends up in a mad customer who wants to talk to store manager. I can bring sales up every time in my dept. by doing customer care one by one. But then, I can't get the freight out. I'm so far behind on freight that some has never gone to floor and is clearance. Makes me want to cry or quit trying. what do I do?
Spouse works at Hoffman. The average employee there doesn't know much in terms of outlook/future either.