Another merger

[Charlie Self]

Sufferin' succotash. Just read that Sears and Kmart will merge, an 11 billion buck deal, with the Kmart head leading the Sears Holding Co. that will emerge, and the Sears CEO being CEO of the group.

I can see the benefit to Kmart. I cannot see the benefit to Sears.

Oh, yeah. Headquarters to remain at Sears headquarters, with a "significant presence" at Kmart headquarters.

Predicted to be a $55 billion company, but I've seen claims for larger than life companies before, including one I recently worked for that claimed $100 million, when balance sheets showed it was about $38-$45 million back then.

Supposed to come in as #3 behind Walmart and Target.

Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx

[Swingman]

With their 50 cent a day labor force, the Chinese oughta love the increased efficiency for 'dumping' opportunities. Just where the hell is that "vast market for American goods" that Clinton was gushing about?

[Mike Hide]

Check out tele comms....mjh

[Bob Schmall]

I'm no retail genius--or any other kind--but it seems to me that Sears long ago conceded the rural market that it was built upon to WalMart. As an urban-suburban retailer, Sears needed more street locations than dying malls could provide; enter K-Mart. Also, K-Mart can be an outlet for cheaper goods that Sears can buy in quantity, maybe even the Lands End stuff that hasn't been doing well in the mainline stores. Bob

[Frank Ketchum]

I don't follow it either. Kmart just underwent a major restructuring last year (or so). I think they declared bankruptcy and issued new stock. In the meantime, they have been struggling with cash flow and have been selling off a lot of their buildings and properties to keep the company afloat. I don't see why Sears would want to hitch it's wagon to Kmart.

Frank

[Charlie Self]

Bob Schmall responds:

Obviously, someone there sees some brilliance in the idea, but IIRC, Kmart came close to going all the way down the tubes a couple years ago, while Sears' performance hasn't been stellar in recent years (going back to when the hired the Bloomingdale type as Prez, I think).

My problem with the concept is that I've done some low end shopping at Kmart (usually to get Coke when it's on sale there and not elsewhere).

The stores are dirty, low ceilinged, stocked poorly and haphazardly, and the personnel might be desirable in an "ignore the asshole, he's only a customer" contest, but otherwise, I guess Kmart is OK.

Sears retail stores seem to be understaffed, but the staff I've seen have all been at least halfway decently trained, are polite and have at least a small clue as to why they're there.

Hell, my mother was an inveterate bargain shopper--raised during the Great Depression and had a solid talent for making a dime do a dollar's worth of buying--but she avoided Kmart (and Caldor in upstate NY). And she died a dozen years ago, after being away from Kmarts for nearly a decade, so the decline I see in them is no recent thing.

But maybe it will work out. Nice to think so. I think I still prefer the Sears of my youth, with no bricks & mortar stores to amount to anything.

Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx

[Scott Lurndal]

Actually, Kmart has had 3 consecutive profitable quarters, while sears has had losses 13 of the last 16 quarters. Seems kmart has successfully re-invented itself, perhaps sears can learn from that.

scott

[mac davis]

Very strange strategy! A few years ago, we had some major gloats when Kmart closed 2 local stores and had closeout sales to try and pull the company out of bankruptcy...

Sears has been doing poorly for years and their attempt to compete with walmart and the borgs by acquiring Orchard Hardware only increased the bleeding... (the reason that I go to OHS a lot is because you never have to wait in line.. not a good sign for a retail outfit)

So, are they figuring that if you put 2 outdated losers together, they'll become a winner?????

[Chuck Hoffman]

Bottom line (for me anyhow): I don't buy tools or hardware at KMart. I probably will stop shopping Sears for similar merchandise.

I just ordered an aftermarket rip fence from Sears for $159.00. I don't expect it to be as precise as a Biesemeyer but it was a lot less expensive, too. When I pick it up on Friday that will probably be it for Sears tools. I'm old enough to remember when they provided reasonable quality at reasonable prices. Sadly, one or the other (or both) have been missing for a long time.

[patrick conroy]

"significant

I heard this am - that the new 10 member board is 7 Kmart'ers and 3 Sears'ers. That caught me off-guard and made me wonder who's eating who (whom?)?

[Richard Cline]

If I have a choice I would certainly go to Sears. Kmart is pretty junky. The store layout is chaos. The products on sale are strictly low end. Sears has a mix of quality.

Dick

[Lobby Dosser]

You forgot to mention the smell of stale popcorn and rancid hot dogs.

[Charlie Self]

Lobby Dosser adds:

I surely did. Thanks. I think.

Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx

[Bob Schmall]

Aaahh...the memories...

[Edwin Pawlowski]

Nah, the benefit is to the new store owner. The Sear/K Mart properties will be divided to 2/3 Wal Mart, 1/3 to Target. Give it three years.

[Frank Ketchum]

I think that was the same idea behind the Kerry/Edwards ticket.

[Del Cecchi]

It was announced by the business press as "KMart acquires Sears"

[Ba r r y]

Pretty soon it'll all be one company.

Barry

[David]

And dried Slurpies on the floor and sidewalks out front. At night their parking lots were dark (K-mart bit the dust in my neighborhood-yeah!) because they were too tight to fix the lamps. Time will tell if Kohl's is a better tenant. I doubt they could be as shabby.

David

Lobby Dosser wrote:

[Lobby Dosser]

Partially dried slurpies. There was always that ripping sound coming from your feet as you walked around - except, of course, where the stale popcorn adhered to the slurpie. Say, that kind of gets this back on topic - slurpie as a glue!