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Sears Holdings Corporation Message Board

  • brewsski brewsski Jan 27, 2004 2:20 PM Flag

    Kmart's fresh start

    Scott Baker, manager of Detroit's only Kmart, takes his work seriously.

    He's a second-generation Kmart employee; his father put in more than 40 years with the company, and Baker has worked there for 20. He's the type of guy who straightens errant clothing racks as he walks through the aisles and laments that salt tracked in from the parking lot is dimming the polish on the floors.

    This is all well and good, but where are the customers?

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    • THAY NEED MORE THAN THAT............

    • TGT's sales are up 9.3% for the year and SSS are up 2.7%. That's not flat!

    • Please, do we need to go over this again? You simply got profit by reducing your COGS! That's a short term, easy fix. It does NOTHING to grow your business long term or even insure your survival more than a year of two. You and the other pumpers (who I want to thank for some outstanding profits I have made on trades) talk about this one-time profit as if it is the end of the struggle! Put together a string of profitable quarters and you'll make believers out of skeptics. Until then, it's nothing more than hype (which I again, thank you for!)

    • Im sure there is a "formula" KMart wants and needs....numbers for expenses, sales, margin, etc that add up to a number that keeps them in business logn term...there is any number of mixes of numbers for those above elements..they have to find the ones that work and are sustainable....the issue is if they have the time to find it.....

    • Sears is looking more and more like Kmart by the day,,,,, take a look at Sear's fresh start. The question that must be asked is, "at what price does Kmart become profitable?"


      January 29, 2004 -- Sears, Roebuck & Co., the largest U.S. department-store chain, will phase out its pension plan, eliminate most stock options and reduce bonuses to be more competitive with retailers such as Wal-Mart Stores Inc. that offer less costly benefits to employees.
      Workers under 40 will be shifted to self-funded 401(k) plans and stock option grants will be dropped in 2005 for salaried employees excluding directors and vice presidents. Chris Brathwaite, a spokesman for Sears declined to comment on the expected cost savings.

      Sears' sales at stores open at least a year have dropped in 22 of the past 24 months as more customers shop at discounters such as Wal-Mart, the world's biggest retailer. Sears Chief Executive Alan Lacy is cutting expenses while spending more to remodel stores and add clothing brands such as Lands' End to win back shoppers.

    • KMart can survive abit (until you get sales rebuilt) with the highter margins...true, sales are down 14, but profits are up 20%...and add to that decreased expenses and the stores are shaping up they have time.....they have very little debt and a good credit line, which, in essence, hasnt been tapped yet....

      But Target has issues too..there margin will not able to keep them in business long with flat sales and increased cost....they are opening stores left and right, but margins are not better, sales are flat, and cost and debt are increasing........

    • Lampert isn't selling off profit producing parts of the company, just pieces of the company that don't make money. See the difference? Lampert obviously does. You post a nice model, it just doesn't have anything to do with kmart.

    • You asked " long can you build stores with flat Christmas seasons?" My response would be, "How do you survive with 14% SSS declines in the busiest shopping period of the year and expect to grow your business?"

      you can if you get 200mill of bottom line profit out of it where you didn't before!

    • Let's not forget that the "low debt" they not carry, was acheived on the backs of their vendors who were screwed out of millions of dollars. Not to mention, the current and former employees who, after many yrs of dedicated service, saw their 401k savings disappear.

      Good margins, based on one small slice of a fiscal year, is an overstatement at best. If you sold $5.1 billion in goods in such a short time, you BETTER make some profit. A more applicable test will be Q1 '04, where they will rely on sales and margins on a more "normalized" basis.

      You asked " long can you build stores with flat Christmas seasons?" My response would be, "How do you survive with 14% SSS declines in the busiest shopping period of the year and expect to grow your business?"

    • Yes...plenty...but their locations are off on side rodes, no direct access to main road...

      KMarts here are on main can get in a out easy......

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