dtwclipper
Posts: 6668
Joined: Wed Oct 29, 2003 3:17 am

KMart Sears Merge

Wed Nov 17, 2004 10:36 pm

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!

http://www.freep.com/news/latestnews/pm1412_20041117.htm
Compare New York Air, the Airline that works for your Business
 
luv2fly
Posts: 11056
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RE: KMart Sears Merge

Wed Nov 17, 2004 10:50 pm

Considering where the KMart world HQ is located (Troy) that might be the location that brings in the most money if they sell it.
You can cut the irony with a knife
 
prosa
Posts: 5389
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RE: KMart Sears Merge

Wed Nov 17, 2004 10:59 pm

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"
 
N801NW
Posts: 558
Joined: Mon Jul 12, 2004 8:56 am

RE: KMart Sears Merge

Wed Nov 17, 2004 11:06 pm

Talk about merging the Titanic and the Lusitania.  Nuts
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: KMart Sears Merge

Wed Nov 17, 2004 11:06 pm

PROSA.

Sears has really gotten its act together this past year or so, and KMarts still has a way to go, they also have improved, even though slightly.
You can cut the irony with a knife
 
Falcon84
Posts: 13775
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RE: KMart Sears Merge

Wed Nov 17, 2004 11:14 pm

Talk about merging the Titanic and the Lusitania.

Or Eastern an TWA.  Laugh out loud
Work Right, Fly Hard
 
desertjets
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RE: KMart Sears Merge

Wed Nov 17, 2004 11:25 pm

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
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Joined: Tue Aug 12, 2003 12:54 am

RE: KMart Sears Merge

Wed Nov 17, 2004 11:31 pm

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.
 
dtwclipper
Posts: 6668
Joined: Wed Oct 29, 2003 3:17 am

RE: KMart Sears Merge

Thu Nov 18, 2004 1:23 am

wow. I thought it was sears taking over K-mart, but it's the other way around!!!!

Where did they get the money!!

Man, wouldn't that be great if the combined HQ was in Troy!!! Good news maybe for Detroit!
Compare New York Air, the Airline that works for your Business
 
CaptOveur
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RE: KMart Sears Merge

Thu Nov 18, 2004 2:52 am

"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.
Things were better when it was two guys in a dorm room.
 
N670UW
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RE: KMart Sears Merge

Thu Nov 18, 2004 3:09 am

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.



N670UW
 
ltbewr
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RE: KMart Sears Merge

Thu Nov 18, 2004 3:32 am

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.
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: KMart Sears Merge

Thu Nov 18, 2004 3:34 am

Bout the only thing that keeps Sears going is Craftsman tools....if they go away, I don't know what I'll do  Sad

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
corey07850
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Joined: Wed Feb 04, 2004 4:33 am

RE: KMart Sears Merge

Thu Nov 18, 2004 4:44 am

I know of 1, yes one, O-N-E Sears that is inside a mall.

I'm with N670UW... I've never seen a Sears that was a stand alone store... Every Sears I've ever been to or seen has been part of a mall.
 
Superfly
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RE: KMart Sears Merge

Thu Nov 18, 2004 10:22 am

Will there be anymore blue light sales?
Bring back the Concorde
 
FlagshipAZ
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Joined: Sun Jan 28, 2001 12:40 am

RE: KMart Sears Merge

Thu Nov 18, 2004 10:30 am

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
 
Superfly
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Joined: Thu May 11, 2000 8:01 am

RE: KMart Sears Merge

Thu Nov 18, 2004 10:37 am

FlagshipAZ:
I'm screwed in the tool department.

That sounded funny! Big grin


Screwed to what?  Laugh out loud
Bring back the Concorde
 
aa777flyer
Posts: 1017
Joined: Fri Feb 09, 2001 8:45 am

RE: KMart Sears Merge

Thu Nov 18, 2004 10:40 am

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
The TSA was created to make the post office look efficient!
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: KMart Sears Merge

Thu Nov 18, 2004 12:31 pm

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.
 
PHLBOS
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RE: KMart Sears Merge

Thu Nov 18, 2004 10:51 pm

Will this mean that the Sears Tower in Chicago is to be renamed the K-mart Tower?  Laugh out loud

All kidding aside, I wonder how this will impact my older brother? He's worked at Sears for the last 23 years.
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
desertjets
Posts: 7575
Joined: Fri Feb 18, 2000 3:12 pm

RE: KMart Sears Merge

Fri Nov 19, 2004 1:24 am

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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