What is this transformation we’ve been hearing about for the last couple of years? It sure is a long process. Can’t be too good of a plan if we lost executives left and right.
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"Transformation" = "Liquidation"
Mattresses appliances and batteries. Nice product mix . Sears does not excel in any category any longer. One of these stores with tools near my home, no customers. Better retailers nearby
To everyone who is quoting Eddie about no new customers. Listen to what "pgp" said. It is not that Eddie does not want anymore customers it is that he does not need customers to fulfill the plan for SHC (emphisis on the "Holding" portion of that name). The retail may still survive but it will be smaller (less physical stores) or maybe a specialized store (Diehard Auto, mattress and appliance store). Lets just say that Eddie decides to go with Mattress and Appliance store concept. So he would take the stores SHC owns and transfer them to another entity so they can be used in the future (this is Seritage).
Now some of the Seritage stores will be remodeled and leased to higher tenants than Sears. Some will be redeveloped into other uses (apartments, office space etc.) to be rented or sold. Others will be made into Mattress and Appliance stores. Now, with the new Mattress and Appliance store you will need delivery and service. Lo and behold SHC already has that in Invotel and A&E. But what about credit for people to buy the mattress and appliances? Lo and behold, SHC has SYW and 5321 Master Card.
How about if they went the Diehard Auto way? Lo and behold, they also have a stake in AutoNation.
SHC also has a reinsurance company, a franchise company (Sears Outlet and Home), business where they can get royalties without spending money (Craftsman, Kenmore, DIehard) (Now these deals may make more sense), they have a stake in Lands End, Monark premium appliances, and Wally home for the connected home ideas.
SHC is more than just Sears or Kmart. It is a company that can make money in many different areas and can "transform" into something other than a retailer. Sears and Kmart may survive in a much smaller way (maybe a few hundred stores) or they can go away, or SHC can sell or get royalties on the name. The skies the limit on what it may become.
Vexpress: I meant to direct that comment @1hdm, who didn't seem to catch your sarcasm.
To: 1qai...Yes, I knew Eddie said that. That is my point right there. He is the leader of the company and he said that himself! No real leadership in this company.
@hdm- it was Eddie himself who proudly proclaimed that we don't need any new members.
Our transformation is letting go of associates and over working the ones we have! It saves us money in the end...We will continue our transformation some more this year and do a major tranformation after the 4th quarter!
To 1gy1: Huh? ! We have no need for new customers and losses are strictly voluntary? What an idiotic statement! No wonder the company is circling the drain! What we need are new executives! The ones we have now are obviously from Mars.
We are transforming into an asset-lite, member-centric integrated retailer. Currently we are in the process of right-sizing our revenue and we will continue to borrow from our CEO at the highest interest rates legally possible to support these endeavors. We have no need for new customers and our losses are strictly voluntary.
pgp - finally someone talking some sense
Well, that is the question that most people do not understand. Sears and Kmart are basically a retail company selling the basic retail stuff. SHC is a holding company which is a different animal. A holding company is a company which is involved in many different aspects of business. The end game is not in retail. The end game is to have a company that is involved in many businesses that are sell supporting.
Therefore, you get a real estate company (Seritage), a member focused company (SYW), a credit company (SYW and 5321 master card) (Eddie owns a portion of Citibank), a service company (A@M), a logistics company (Invotel) and on and on. The transformation is not to transform the retail portion of the business. The transformation is into a company that has their hand in every aspect of business (See what Warren Buffet did with Berkshire Hathaway).
Now go back are read every press release or interview or financial conference call that Eddie has spoken and you will understand that what Eddie says has nothing to do with the retail side of things it has to do with "transforming" SHC into a whole different company. Retail may be a part of the plan but it is not the end game.
They don't even know what they are transforming too other than imminent bankruptcy. The moves they are making are too little too late.
It's basically PR speak that companies always use to not make their stock drop like a rock and not create panic. It's all b---s---.
It's the "Transformation" from a going concern to a bankrupt former company.
Still haven't figured that out huh?