Thread regarding Sears layoffs

@2cze AMEN!

All the nonsense about cutting corporate tax rates lately is just as infuriating - corporations are only taxed on the profits, which is what's left over after they pay all the employees' paychecks and benefits, buy all the stuff they sell, pay all the leases and utilities, etc. So the higher corporate tax rates are, the more they'll feel like they might as well spend more of that 'leftover' money on employees!

And businesses that are in the red (no profits at at all), like SHC has been for how many years now, pay no corporate taxes at all.

@QxaJOOA-1bxa The government takes less as a % than it has in 90 years.

The problem is taxes on the higher earners is too LOW.

Think about it, in the 50’s, top wage earners paid 90% tax on anything over a million, so the money got plowed back into the company. In the 60’s Kennedy lowered that rate to 70%, in the 70’s it got lowered again and again in the 80’s(Reagan and tip O’Neill realized they lowered it too much and then raised it back up part of the way).

W. Lowered it more and it caused unfettered greed and the collapse of the banks. Obama raised it up to39.6%, better but not enough still.

People like Eddie should be paying 70% or more on anything over a million a year (who needs that much)?

John McCain when asked “how many homes do you own?” In 2008 famously answered, “I’m. It sure, I’ll have to get back to you.”

And you think taxes are too low??????

Unbelievable.

they lost 820M from operations offset by RE sales gains

@1bxa Never thought of it that way its truth, but atleast in the government theirs a chance of advancing at Sears its like impossible no matter how good and efficient you are never ever have I gotten a raise for my hard work. Government does have the same issue depending on the sectors, but in the end of the day their is chance of advancement as soon as your in.

@1zuv Thats the problem doesn't management see what a waste of payroll it is to keep a department that doesnt bring money. Their is so many things they can also close and focus on atleast the priorities.

Sears reminds me so much of the government. Too many chiefs and not enough Indians. Too much bureaucracy. Too much red tape. Zero efficiency. Redundant or unnecessary business processes. Failed projects and initiatives. Lack of accountability. Too much dead weight.

The only difference between the two is that Sears sustains itself by selling assets and getting loans from Eddie Lampert. The government sustains itself by taking more of our money.

Isn't it obvious? The stores currently cost more to run than they earn. There are hundreds of stores so that adds up to hundreds of millions lost.

That is the entire reason why hours are getting cut. It's their only option since they don't have any money to put into remodeling.

@1qsd "So explain to me why the hell is it still opened?"

Because management = http://ericasuter.com/wp-content/uploads/2015/08/4krqf8.jpg ;-)

@lhb To be more exact November having BF the Electronics department in my store just sold $4,500 in a whole month (and just to show a comparison when it was full force that department alone would sell around 30k in a day at times). They are negative 84 percent vs last year (just to also note the department since last year was shrinking and also their sales yet they were still so bad this year being 84 percent down to last year). So explain to me why the hell is it still opened? It was rumored that it was finally going to go bye bye, but nope its still their and a big waste of $$$ another reason why the company is sinking further.

So say each week associates get 70 hours for the department benefit rate at 12 dollars so in a month thats 282 hours times 12 is close to 4k they are spending on the electronic associates alone. Also to mention the profits they make of 4.5k is very little since its not pure profit.

So I just don't get it big waste of pay roll electronics should of been bye bye if they weren't going to invest in it, but this is happening in my actual store big waste of $$$.

@QxaJOOA-ojo Yes exactly! How are they going to survive if they keep getting rid of stores? Not to mention the mountains of debt they still owe. All this money they are "saving" is going straight into the debt pile, it for sure isn't going into rebuilding the stores or funding vendors.

Sears simply can't reduce its cost structure fast enough to keep paces with its decline in sales. Killing stores certainly doesn't help. since those stores generate enough revenue to pay for a lot of the fixed costs that Sears requires to run its business. The number of buyers needed, contracts, IT services, legal, distribution channels, advertising required, and other functions does not decline in a linear fashion with the number of stores.

If Sears were actually serious about stemming losses, they would entirely exit lines of business, and focus solely on the profitable ones. That might mean eliminating the retail stores entirely, and channeling all resources into Home Services, delivery, and branded goods. If it is not too late. Build smaller, focused stores, and close out the big, general merchandise retail channels. Sears has not been competitive in that arena in decades.

And more to your point, I am amazed they have been able to lose that much quarter after quarter, year after year, and still remain in business. They were asset rich at one point. Now, almost all of that is gone.

@cws "Let me put one for example in my store electronics was suppose to get eliminated yet they ended up keeping it. I seen on their overall schedule they get around 70 hours per week. I don't even know, but since they got cheap accessories like 3 T.V.s they can't sell no more than maybe $700 a week (thats if they sell one T.V.). So they are at huge losses having electronics still open a waste of payroll."

LOL wow I didn't realize any Sears stores still had a so-called electronics 'department' anymore. I hope at least those associates are acting as cashiers for customers coming from other departments (so your store's appliances people don't have to) when the other depts are understaffed.

I went to the local mall last night and it was so empty, you could through a grenade in there and no one would get hit. @QxaJOOA-qky keeps copy and pasting crap about Sears versus JcPennies and how Sears would survive it Pennies goes under. Ugh. Go to your local mall. ALL of these retail stores are dead. Just DEAD.

@ggp I think it depends their is still people that shop on retail stores the problem is not evolving. Look at Walmart for starters they have evolved and are competing. Same with Best Buy. JCP is trying to survive by entering the appliance arena which is a smart idea. I don't think just because JCP goes under Sears will still have a fighting chance. I noticed my store has gotten so much less foot traffic I remember a few years ago it would be packed a lot of shopping, but we just don't have that anymore. Sears has tainted their name to much with negative WOW experience for shooting themselfs in the foot.

Its just bad management throwing money in certain areas in the company its just gotten bad that Sears rather cut unnecessarily cuts and keep necessarily cuts that need to be made. Let me put one for example in my store electronics was suppose to get eliminated yet they ended up keeping it. I seen on their overall schedule they get around 70 hours per week. I don't even know, but since they got cheap accessories like 3 T.V.s they can't sell no more than maybe $700 a week (thats if they sell one T.V.). So they are at huge losses having electronics still open a waste of payroll. I have to say another big one is SYWR I mean I have seen customers go out without paying a dime out of their pocket. I would like a more detail analysis of how Sears digs up a huge hole.

Penny's, Sears, Macy's. They are all dead. No significant part of the population shops at any.

Online sales are < 10% of all retail. Sears is losing 15% every quarter. Ask yourself where the rest is going.

Amazon and a non changing retail environment. Sears is counting on other outlets to gain revenue. If Sears can outlast JC Penny that does not have a home services or other business channels then they will be able to change and survive. That's why JC Penny and short sellers spam this page to reduce moral. Because the longer Sears lasts the more screwed Pennies is. Its us against them baby!