Quarterly Loss Says Sears Is A Sinking Ship
Like others, Sears mentioned warm weather as part of the reason why there was a lack of sales momentum. At the same time intense competition was identified as pressuring margins. No doubt these external factors were problems for Sears and Kmart, however, I think that Sears was sloppy in its advertising and demonstrated a lack of understanding its customers’ needs. The promotions were weak. Even more concerning is the fact that the company no longer has a standing with consumers regarding fashion and style. A gift from Sears or Kmart is no longer attractive or desirable.
While the company is still reassuring vendors of their liquidity, the bigger problem in my opinion is that customers have abandoned both Sears and Kmart as destination stores. I see little hope of Sears recapturing momentum as a major hardline retailer. Many of the assets that made Sears great such as Craftsman tools, Die Hard batteries, and Kenmore appliances are now available at other stores undermining the need to shop at Sears and Kmart stores for these hallmark products.