It seems like there is a new article every day about the long decline of Sears. I have been on their rewards program for a couple of years, and it is by far the most generous rewards program I have ever used. They give away a lot of points without you even having to buy anything. Right now I have an offer in my account that will give me $30 worth of merchandise almost free. (Spend $30, get it back on a gift card) I don’t spend huge amounts of money at Sears, but I still got a TV antenna, Sodastream bottles, a bunch of clothes, and some dart supplies all for free. I wonder if Eddie Lampert wants to bankrupt the company for some reason.
They have the same owners as K-Mart, and are in the same dire staights. My guess is that the generous reward system is driven by desperation, and the hope that this will somehow translate into more sales.
Believe it or not, there are apparently still people who like shopping at Sears and K-Mart (no, I’m not one of them). I think the idea of these promotions is to bring them back into the store again and again. Giving away store credit or points doesn’t cost them that much and helps move merchandise that would otherwise just sit there unsold. It’s a numbers game. If they can move enough merch they can keep the lights on… at least for the time being.
Eddie Lampert has been sucking the company dry for years. One could speculate that when he put Sears property into a trust, but kept the parent company responsible for the leases, he was just preparing for the inevitable closing of the retail operation.
Sounds like a plan to generate foot traffic.
Do anything, but them and their money into the store - 'cause folks outside aren’t going to be buying stuff.
I used to like shopping there, but it’s really gone to hell. I really hate the wandering sales people trying to sell you siding or windows or whatever it is they’re hawking.
I’m a little surprised that they haven’t converted the whole operation to a real estate investment trust. The dirt the stores sit upon is worth more than the stores themselves. That’s a decade past overdue.
I keep hoping the J.C. Higgins .22 rifle my brother ordered for me through the Sears catalog in about 1960 will one day be worth some money.
Here’s a Seattle Times article about Costco’s get-them-to-the-store-at-a-loss policy.
It’s all a matter of brand perception. If Costco or Amazon or Apple does it, it’s brilliant strategy; if Sears or Radio Shack or Samsung does it, it’s desperation.
It’s worth that much on paper. In an age when every other anchor store is posting losses, it’s probably not worth that much in an actual market.
Costco has a completely different business model. Costco makes money off membership fees and high turnover. That’s not the business Sears is in. Even if Lampert goes the REIT route don’t look for that to make Sears profitable, Sears stores couldn’t pay the kinds of rents REITS are looking for.
For “the one that got away”:
See San Francisco, bounded by:
Geary Blvd on north
O’Farrrell on south
Masonic on west and
Lyon on east
Massive, as things in SF go.
It was all one Sears store
The same building now is home to at least 6 different stores.
The lot was leased.
I would love to see a fresh appraisal - this is the equivalent of 2-3 BLOCKS, all one parcel.
Developers drool over such things.
Ever the cheapskate, I was really intrigued by their rewards program. It is unusually generous BUT I dislike shopping at the brick&mortar store and their website is an enormous pain to navigate. I had a bunch of points available and still had a helluva time coming up with something I actually wanted. Their search engine is a nightmare and hardly ever brings back comprehensive, useful results.
It’s not as bad a deal for the store as one may think. You are getting effectively half price on what you buy, but the hard cost to the store is just how much they paid for the merchandise. Depending on the markup on the items bought, it’s possible for the store to break even or make a small profit in spite of the incentive - and they get you in the store (or on the website), guaranteed. Regular ads cost big bucks and have no guarantee that they will get a body in the store. It’s probably a very cost efficient thing to do.
They could always start selling stuff onna stick…