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Sears has another chance to avoid closing down

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Re: Sears has another chance to avoid closing down

#31

Post by gammateam »

Forbo wrote: post #17

Congratulations on driving a company into the ground! Have a golden parachute! https://www.cbsnews.com/news/sears-bankruptcy-court-oks-25-m...

I get the tone of your post

But have you considered that prosperity preaching is the bigger issue here? The idea that “success” = wealth or that they are correlated in any circumstance aside from coincidence, and that other combinations are part of a therefore broken system

The reason I bring it up is because its a set of rules exclusive to lower socioeconomic groups, as opposed to a more effective set of rules

Re: Sears has another chance to avoid closing down

#32

Post by bluGill »

wil421 wrote: post #20
lotsofpulp wrote: post #16

Earlier quoted context omitted.

It's a good example to those that claim companies should pay employees liberally. Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc), then you're going to lose business to competitors offering lower prices. In this situation, the only way to improve the well being of those whose labor isn't as…

Costco is an upscale place to shop? I’ve never seen them lumped together with Whole Foods or even Apple. Edit: Wow I didn’t realize Costco’s profit margin was higher than Whole Foods, Wal Mart and almost a full percent above Kroger’s.

They are. You need to have a good amount of extra money to afford the membership and the cost of buying 6 months of toilet paper in advance. Those are cheap items that you will need, if you are not poor you probably don't even think about it. However when you are poor it doesn't matter if it is cheaper or not to buy in bulk because you don't have the cash to afford it. (you also are unlikely to have the storage space for all of that)

Costco serves the upper class.

Re: Sears has another chance to avoid closing down

#33

Post by FiveSquared25 »

lotsofpulp wrote: post #16
bluedino wrote: post #11

How much of Sears's demise was due to Walmart? It's not like retail completely died. The home improvement chains hurt them too, once they started selling tools and appliances. We bought everything at Sears in the 80's. Electronics (including computers), appliances, toys, clothes, tools, lawn and garden... Was Sears too 'friendly' with their suppliers? When I worked at Sears at the end of the 1990's (the store was a g…

It's a good example to those that claim companies should pay employees liberally. Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc), then you're going to lose business to competitors offering lower prices. In this situation, the only way to improve the well being of those whose labor isn't as…

But retail is low-margin. The whole point of a minimum wage is to force EVERYONE to pay the same.

Re: Sears has another chance to avoid closing down

#34

Post by hgq »

daveFNbuck wrote: post #29
lotsofpulp wrote: post #16

Earlier quoted context omitted.

It's a good example to those that claim companies should pay employees liberally. Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc), then you're going to lose business to competitors offering lower prices. In this situation, the only way to improve the well being of those whose labor isn't as…

Paying employees more is supposed to work because it results in employees who do their job better. It seems Sears just increased the pay without increasing the expectations. I avoid Sears because when I go, despite there being no customers, the place is a mess and I can't find anyone to help me.

>Paying employees more is supposed to work because it results in employees who do their job better.

I'm sure above certain threshold, which is probably low, raising wages doesn't make employees do their job any better.

In other words, unless you pay your workers literally peanuts, they will do the same job more or less.

Re: Sears has another chance to avoid closing down

#35

Post by ben1040 »

My first online shopping experience was with Sears over Prodigy in 1991.

You could browse online, or order from the paper catalog (which is more likely what you'd do because NAPLPS graphics didn't lend themselves well, or at all, to product depictions). Then they'd ship to you, or you could go to the order pickup area at your local Sears store.

They had a touchscreen kiosk there where you'd punch in your order number, and be directed to a cubby where your stuff was waiting for you.

They had today's "buy online, pick up in store" thing, but nearly three decades ago.

Re: Sears has another chance to avoid closing down

#36

Post by mikestew »

Lampert might have "saved" AutoZone, which AFAICT was the feather in his cap to make him "the next Warren Buffert", but if you asked me I'd be hard-pressed to tell you how the shopping experience changed. I speak from ignorance, and the laziness that prevents me from researching deeper, but I assume he did some accounting tricks, sold a few inefficient assets, etc. But as the owner of some old vehicles and a frequent shopper of auto parts stores, I couldn't tell you when Lampert took over AutoZone based on any changes to the shopping experience. So when it comes time for a new WhatsIt for the '81 VW, I'd just as soon go to the local NAPA because they'll probably actually have the damned thing.

This brings me to Sears: did he ever shop at his own stores, or was he busy pouring over the books and figuring out new ways to implement corporate versions of The Hunger Games? Because the shopping experience at Sears was never great, IMO, and it only got more depressing when Lampert took over. Tool quality went to shit, appliance quality went to shit, and the shopping experience sucks. You can juggle books all you want, but that won't get customers in the door. And if I do make it in the door, the lack of service and the dingy store will ensure that I never return.

So in summary, I argue that Lampert either got lucky with AutoZone, or what worked there did most certainly not work for Sears because at the end of the day customers ask themselves, "do I want to shop there?" And Sears in recent years gave customers very little reason to say, "Yes".

As a sidenote, WTH is he willing to throw good money after bad with his $4.4 billion bid? I'm stumped as to what rabbit he thinks he can pull out of that hat.

Re: Sears has another chance to avoid closing down

#37

Post by ams6110 »

Tsubasachan wrote: post #18
wombatpm wrote: post #5

Sears had everything. Global supply chain, check. Top notch distribution operation, check. System and infrastructure to take orders and handling billing, check. Name recognition and established customer base, check. They threw it all away, ending catalog operations in 1993 a year before Amazon.com opened in 1994. They owned part of Prodigy in 1984! Yet somehow thought it was a better move to expand into bigger box re…

Those who are first will later be last for the times are changing... Is there anything people don't buy online these days?

There's a lot of stuff I don't buy online.

Clothes -- I like to try them on first.

Tools -- I like to see if they are well made and how they feel in my hand. Photos on a website don't provide this.

Food -- I want to check produce and meat before I buy it. And it's easier to stop at shops I'm passing on my way home anyway.

Household supplies -- I don't want to deal with disposing of shipping boxes, styrofoam peanuts and air pillow packs for stuff I can just grab off the shelf at the local Target.

Big-ticket items (appliances, furniture, etc) -- I want a local business standing behind the product and the warranty.

Stuff I buy online are typically things like books (no local bookstores anymore) and odd items that are hard to find locally (like the mic/audio splitter cable my kid needed for his X-box controller).

Re: Sears has another chance to avoid closing down

#38

Post by Zigurd »

wombatpm wrote: post #5

Sears had everything. Global supply chain, check. Top notch distribution operation, check. System and infrastructure to take orders and handling billing, check. Name recognition and established customer base, check. They threw it all away, ending catalog operations in 1993 a year before Amazon.com opened in 1994. They owned part of Prodigy in 1984! Yet somehow thought it was a better move to expand into bigger box re…

There was an enormous Sears near where I grew up. It always felt shabby and badly run. They had lost the recipe even then, when they still had the catalog business.

I get the impression from Sears and other big companies that lose their way that they become the playgrounds of big management egos that want to leave a mark and get written about in business publications, whether or not their ideas work.

Re: Sears has another chance to avoid closing down

#39

Post by moftz »

wil421 wrote: post #20
lotsofpulp wrote: post #16

Earlier quoted context omitted.

It's a good example to those that claim companies should pay employees liberally. Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc), then you're going to lose business to competitors offering lower prices. In this situation, the only way to improve the well being of those whose labor isn't as…

Costco is an upscale place to shop? I’ve never seen them lumped together with Whole Foods or even Apple. Edit: Wow I didn’t realize Costco’s profit margin was higher than Whole Foods, Wal Mart and almost a full percent above Kroger’s.

Costco does sell in bulk but it's not a Family Dollar. It's for the middle class to save some on their name brand groceries because they can afford to pay more at the register to go a little longer between trips to the store. It's not really aimed at people that can barely afford to shop at the discount Aldi every few days because they can't pool enough money together for a biweekly Costco trip.

Re: Sears has another chance to avoid closing down

#40

Post by krustyburger »

wil421 wrote: post #20
lotsofpulp wrote: post #16

Earlier quoted context omitted.

It's a good example to those that claim companies should pay employees liberally. Unless you're in a niche that people are willing to pay a margin for or serve upscale customers who also don't mind paying margins (Costco, Whole Foods, Nordstroms, Apple, etc), then you're going to lose business to competitors offering lower prices. In this situation, the only way to improve the well being of those whose labor isn't as…

Costco is an upscale place to shop? I’ve never seen them lumped together with Whole Foods or even Apple. Edit: Wow I didn’t realize Costco’s profit margin was higher than Whole Foods, Wal Mart and almost a full percent above Kroger’s.

Their margins are high like the others because many households renew memberships each year but do not make much use of them. I also think their membership does skew more affluent than many other retailers.
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