Should Sears and Kmart Happen to Online-Only Stores? | Business ...
Peradventure it's time for Sears Holdings (NASDAQ: SHLD) to consider the unthinkable. No, not seek bankruptcy protection, though that's likely in the cards if it doesn't
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With Payless filing for bankruptcy screen and closing stores, the number of retail bankruptcy filings so far in 2017 has already surpassed the total number of retailers that went under final year. In the news recently is a report that mall-based Bebe is trying to forestall a bankruptcy filing by becoming a hip e-marketing-only women's retailer, and that might be a way for Sears and Kmart to avoid what's increasingly looking like an... For one, although it's still rare for a retailer to scale back to being exclusively an online tag, these days it's becoming more fashionable. Just this past January, The Limited closed all 250 of its stores and moved its clothing sales online, while Kenneth Cole announced in November it was closing all but two stores as it moved its vocation online as well. Before that, bankrupt Filene's Basement -- a discount retailer that closed down in 2011 but was apparently vanguard of its time considering the success T. J. Maxx, Ross Stores, and other similarly situated discounters are having -- was revived in... Sears and Kmart aren't noticeably the same kind of retailers as these others, as they have a far more diverse product lineup consisting of not only apparel, but also appliances, consumer electronics, lawn and garden gear, tools and hardware,... Sears also has a number of services, including home repair and installation, and auto work. Apparel has been one of Sears Holdings' weakest segments, with sales falling 12% definitive year and serving as the leading cause of margin contraction at both Sears and Kmart. Incurring store expenses to support this failing in control ready for of business makes it a natural choice to move online, but it could also just as easily sell dishwashers, refrigerators, lawn mowers, and tools past its website -- and at lower cost. It would be a modern-day version of the Sears catalog, where once upon a time, you could even order a house. Although Sears stock jumped after Chairman and CEO Eddie Lampert bought up even more callers shares , there's been nothing to suggest a long-term move toward financial health. It may take time before Sears Holdings declares bankruptcy, but if it follows the conduct of some of its equally troubled peers and moves both its Sears and Kmart brand online before doing so, the once-venerated retailer might still be able to... Website article commenting will be ruined prior to the launch of the new platform.
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