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leaderoftheback (40.15)

Note to Sears and Mr Lampert



November 24, 2012 – Comments (2) | RELATED TICKERS: SHLD

If I had a billion bucks, here is what I would do with Sears.

1. I would put all of America on notice: in two years, Sears stores will sell only American manufactured goods (we will define that as goods finished in America, for the sake of this argument).

2. I would begin converting every department as soon as possible, but if, in two years nobody in America is making televisions, you can visit our Kmart stores. 

America still manufactures many useful things, and there is a small movement already to open "USA" stores (Nassau, New York; population 4,789 currently has one where you can buy blue jeans, boots, and socks).  I bet that with 1200 locations worldwide, Sears would move a few of whatever widget I could make.

3. Sears continues to lose relevancy with every passing day.  Why shop there?  Well, I'd find this a compelling reason to start.  It doesn't mean I'm willing to pay double for everything, but you can find American made socks now that are no more expensive than foreign made socks (and sure, you can find really cheap foreign socks...if that's what you want, go to Kmart). 

The best thing at Sears is the Craftsman tool line...already made in America.  Just because an item can be made cheaply overseas doesn't mean it is (or can be) sold cheaply here.

4. There you are, Mr Lampert...make me happy to shop at Sears and proud to own SHLD. 

2 Comments – Post Your Own

#1) On November 25, 2012 at 5:03 PM, Lulupoopsalot (61.92) wrote:

I'll say it:  Eddie Lampert has failed.  I say turn the company over to someone who at least has a plan while there is still time.

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#2) On November 25, 2012 at 6:23 PM, ikkyu2 (98.21) wrote:

For a long time in my life, misplaced loyalty to Sears caused Sears to be a speed bump in a long line of appliance and other major purchases that were eventually executed elsewhere.  I once spent 8 weeks trying to get Sears to deliver a washing machine; the third time they cancelled my order with no notice, I called Lowe's that evening and the appliance showed up and was installed at 9AM the next day for $100 less.

I think my point is that Sears has *already* tried the model where the loyal consumer tries to pay more to keep Sears in his buying decision.  They can't even make *that* work.  Sears needs to reincorporate as an REIT, close all the retail operations, rent the stores out to companies that actually *can* make sales, and pay the rent to shareholders in the form of a qualified REIT distribution-dividend.

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