Dtwclipper From , joined Dec 1969, posts, RR: Posted (8 years 6 months 4 days 7 hours ago) and read 594 times:
For most of the country this doesn't mean much, but I wonder, for those of you who have been to Troy, Michigan, what will happen to the massive K-mart HQ here.
I am sure this means more job loses for the Detroit area, and an end of another local company!
PROSA From United States of America, joined Oct 2001, 5439 posts, RR: 5 Reply 2, posted (8 years 6 months 4 days 7 hours ago) and read 582 times:
News reports say that the combined headquarters will be at Sears' current site in suburban Chicago, but that the company will maintain a "significant presence" in Troy. What that really means, who knows.
While we're on the topic, has the expression "the lame leading the blind" occurred to anyone else?
"Let me think about it" = the coward's way of saying "no"
DesertJets From United States of America, joined Feb 2000, 7673 posts, RR: 19 Reply 6, posted (8 years 6 months 4 days 6 hours ago) and read 563 times:
Well both companies are still profitable, they have just seen their market share eroded away and their sales revenue in a continual decline for a better part of a decade. I'm not really sure whether or not this merger will be fruitful in the long-term. But at least in the short-term the combined company will have reduced costs and its larger size will give it significantly more buying power and market presence, but still pale in comparison to Walmart and Target.
What sucks for Sears and KMart is that the bottom of the market segment has been thoroughly taken over by Walmart and Target... as well as newer entrants like Kohl's. Specialty stores like Best Buy and Bed Bath and Beyond have taken over a lot of both companies old core businesses, electronics, appliances, and home decor and small appliances. This stuff WAS very profitable for a store like Sears. But not with everyone and their mother selling TVs and washer/dryer sets the margins are much much smaller. Unlike JCPenney, Sears really does not have the brand equity to move upmarket as a department store. For many people, and to some extent that includes me, there are still memories of dumpy stores (who hasn't been in a Sears that hasn't been in some state of construction?), Toughskins jeans, and bad polyester perma-press men's wear. Not to mention the complete absence of popular name brands until almost 15 years ago for most things.
I still doubt the long-term success of a Sears/Kmart merger. They have a few good things going, namely Craftsmen tools and garden equipment and Martha Stewart... but is that enough?
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
N6376m From , joined Dec 1969, posts, RR: Reply 7, posted (8 years 6 months 4 days 6 hours ago) and read 558 times:
Business Week has an article this week on KMart that speaks about it having something like a $5B net operating loss tax carry forward. This means that since Sears is mergining in to KMart, $5B of income will be sheltered from federal tax liability. This creates a cash savings of approx $1.7B.
Since emerging from bankruptcy, KMart is both cash flow and GAAP income positive.
The combined entity will be a force to be reckoned with.
Captoveur From , joined Dec 1969, posts, RR: Reply 9, posted (8 years 6 months 4 days 3 hours ago) and read 527 times:
"The combined entity will be a force to be reckoned with."
And I have a 20 inch wang.
Sears and K-mart will never be a force to be reckoned with. Their business model is from a bygone era. I know of 1, yes one, O-N-E Sears that is inside a mall. All the rest of them are stand alone stores, just like K-mart. The only successful stand-alone stores that come to mind are Target and Wal-Mart. Sears and K-Mart combined have nowhere near the pull to fight with those two giants.
Out of sympathy I do still shop for tools at Sears. One hand tool is as good as the next and anymore just about everyone has the lifetime guarantee that Craftsman offers, but I do still prefer Craftsman hand tools. On power tools Sears has the exact same prices as Home Depot and that other place so out of sympathy when I need a power tool I buy it at Sears, I hate seeing the giants like Home Depot take over the entire market.
N670UW From United States of America, joined Jul 2003, 1595 posts, RR: 8 Reply 10, posted (8 years 6 months 4 days 3 hours ago) and read 521 times:
I know of 1, yes one, O-N-E Sears that is inside a mall.
And I don't know of any that are stand alone - all the Sears's in this parts of the country are part of malls. I think Sears has plenty of mall stores.
Ltbewr From United States of America, joined Jan 2004, 12329 posts, RR: 12 Reply 11, posted (8 years 6 months 4 days 2 hours ago) and read 511 times:
My first reaction to this is HUH? But you know this might work out. Probably K-mart's HQ will continue to be where that divisions stores are operated out of and will probably have some consumer goods buying for both chains shifted to them. A 50 Billion $ Company can negotiate better prices than can either alone. Sears has been trying out Supercenters in some western USA markets, where they carry food and other related goods. K-Mart already has a number of supercenter stores with grocery stores sections. Something like 200 K-Mart locations (current and former) will become stand alone Sears and Sears Hardware-Appliance stores. Those locations will probably be where Wal-Mart has killed off K-Mart already, like in the Southern USA, including Texas. K-Mart has already sold off some ex-locations to other 'big box' chains, like Home Depot and some were to already be sold to Sears. We could also see some cross merchandising, like K-Mart's Martha Stewart (home products) or Thalia (clothing) lines in Sears and Sears' low end tool and hardware lines, paint and other product brands at K-Mart thus consolidating brands and increase buying power.
FlagshipAZ From United States of America, joined Jan 2001, 3419 posts, RR: 15 Reply 15, posted (8 years 6 months 3 days 19 hours ago) and read 459 times:
I'm with DeltaGuy on this one. If the Craftman name goes away, I'm screwed in the tool department. Craftman is the only tool brand I'll buy. Let us tool fans hope for some common sense to prevail here in the merger mania. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
Aa777flyer From , joined Dec 1969, posts, RR: Reply 17, posted (8 years 6 months 3 days 19 hours ago) and read 454 times:
Both stores will retain their identity and shoppers will notice little difference on the surface.
IMHO Both stores SUCK and I have and never will shop at either...Same goes with Walmart
Srbmod From United States of America, joined Mar 2001, 16888 posts, RR: 51 Reply 18, posted (8 years 6 months 3 days 17 hours ago) and read 437 times:
Well all of the effort being done here in Atlanta to lure Kmart to move their HQ to here was all for naught. Let's just hope they do go ahead with their plan to put a Kmart in part of the former Macy's downtown.
DesertJets From United States of America, joined Feb 2000, 7673 posts, RR: 19 Reply 20, posted (8 years 6 months 3 days 4 hours ago) and read 405 times:
I hope the irony isn't lost here on a Sears/KMart merger. Back in the 1970s when KMart was emerging it was seen as a serious threat to Sears. Back when my dad was at Sears (1968-1981) he remembers when they "experiemented" with being open on Sundays, because KMart was open on Sundays. Obviously the experiement worked because they are still open Sundays.
Now it is ironic that the once bitter rivals are each others best chance for survival.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
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