RE: Sears And J.C. Penney Are DYING

I don't follow business news, but it seems like Kohls is popping up everywhere. Are they part of the reason Sears and Penneys are doing poorly?

The economy is failing and Americans are broke.

I think Sears is dead. They sell way too many variety of things that doesn't belong at a mall.

I think JC Penney still has a shot at turning around. It's anecdotal, but there are many people I know who likes to shop at JC Penney for their quality for the price. I know Kohl's and other discount retailers who are located outside of the mall have been doing well. But I think there's going to be a reversal in trend at some point. There's been many articles where mall's are dying and online shopping is taking over b/c of the convenience. I think Kohl's and other discount retailers are doing well too b/c they're located in more convenient locations for the suburbs. However, I think this will change. Mall's will not go down without a fight, and they will improve shopper's experience and it'll change. Malls are still one of the places to go for an activity, and they'll improve the experience.

Should the gov't give Sears and JC Penny FREE WELFARE money?

This has nothing to do with the economy. The economy is the best is has ever been for retailers. I work for a company that has a retail arm, and we no longer need JCP or Sears.

Did you all cry about the demise of K-Mart and Circuit City? These dinosaurs have been replaced by stores that offer better experience and product, i.e.,, Best Buy, Lowes, etc.

JCP and Sears are broken business models in the US. I say the US, because Sears in Mexico is owned by Carlos Slim and is thriving, but Sears is positioned more premium in Mexico. In the US, Sears has been a lower business entity with confusing offerings - you mean I can get a tune-up, oil change, and buy a fridge or treadmill?? What do they stand for?

Economy is thriving. These businesses did not adapt to the changing climate of consumer shopping habits.

i agree with the other poster that the business model of sears is broken and they sell stuff that does not belong at a mall. jcp is a little different, they hired that Apple executive who went on to try and change their stores completely to attract a different customer. It didn't work, and in the process they lost most of their old customers. They were troubled from the beginning, but that guy literally managed to blow billions. And I'm sure he was paid handsomely for doing so.

Drama Club wrote:

Should the gov't give Sears and JC Penny FREE WELFARE money?

Correct. The import, abatements, and other tax breaks to benefit the Walmarts of the world is what caused most mom and pop stores to be unable to compete and now their 'trickle down effect' is reaching the big stores. On top of it, Walmart doesn't pay a working wage leaving many of their employees collecting welfare. All this so that one family can be billionaires each. Why do Americans shop there? To get their absolute crap imported from China and sold at a cheaper price. The bigger stores might still make it if Americans spent a bit more for quality or American made products, or god forbid, go without every cheap plastic item known to man.

JC Penny has 1,100 stores. Closing 33 underperforming locations does not meet the definition of "dying".

You mean like Walmart?

Drama Club wrote:

Should the gov't give Sears and JC Penny FREE WELFARE money?

Sears tried to be too many things for everyone and it didn't work out in today's environment. No need for a portrait studio, optical shop, etc, etc. in one place anymore. That gigantic catalog they had before the internet and their distribution model was what made them. Their management are also probably dinosaurs too slow to change and thinking giving their appliance salesmen ipads to walk around the floor with is going to change everything.

dsfsffdfd wrote:

Sears tried to be too many things for everyone and it didn't work out in today's environment. No need for a portrait studio, optical shop, etc, etc. in one place anymore.

I agree with this and think Sears has a shot if they get much more niche. Their automotive stores and their home and garden departments are always busy, but the idea of people regularly buying jewelry or clothes there isn't happening. If they pare down their offerings, they could conceivably return to profitability. But they have a severe image problem, and that alone will be very hard to overcome.

smashed grape wrote:

I don't follow business news, but it seems like Kohls is popping up everywhere. Are they part of the reason Sears and Penneys are doing poorly?

probably. Kohls has replaced jcp and sears for the suburban soccer mom type. Younger women go to macys or nordstrom. Guys go wherever, but only buy what they need, so don't keep these types of stores afloat.

JC Penny is for sure on its way out, but Sears has an insane amount of value to its real estate. I'm pretty sure they are trying to transfer the real estate holdings outside of the equity-backed business, but for now that should provide some techincal resistance for the stock.

Sears = Walmart/Target without the investments made in making their stores look as clean, and more modern interiors.

Freddie McFrugal wrote: I think Sears is dead. They sell way too many variety of things that doesn't belong at a mall.

Millennials strike again.

Wait until we cut social security to save some for ourselves!!

Sears was basically ran into the ground by its "genius" investor CEO. Google a few articles. It doesn't take long before you figure out that either he doesn't know what he's doing, actually benefits from the franchise's, collapse or both.

it's hard to compete when you have Speaker City which is slashing prices on everything from beepers to DVD players....