Friday, February 10, 2017
Sears stock soars as ailing retailer maps out survival strategy
I thought that this article was an interesting read because Sears and Kmart have been in the news the last couple years because they were not doing financially well. This article talks about how Sears has this new plan on reducing debt and increasing sales. it will be interesting to see how this works out for them, if there was a time for a company to make a turn around I think this would be the time to do so based on the economic upturn we have going on right now. Sears wants to come up with a system that allows them to have less products sitting in warehouses because inventory costs money so they want to go with a just in time mentality like Walmart does. I'm not sure how this will workout for them because Walmart has a huge following and loyal customers that shop there regularly.
Link: http://www.usatoday.com/story/money/2017/02/10/sears-holdings-restructuring-plan/97735498/
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3 comments:
Sears are adopting an effective business plan that will allow the company to start making small gains in profit and with the stock market doing well these days, Sears can surely benefit from this wave of optimism. Competing with Walmart will be difficult because the company has dominated the industry for many years and while Sears are doing some internal reorganizing they are not introducing any ground breaking services or products to rival Walmart. It'll be interesting to see if Sears can rival Walmart in any way going forward.
I do agree with Q that it will be interesting to see if Sears can rival Walmart, but I don't think it is possible. Walmart has close to 12,000 stores compared to 700 stores for Sears. The article does talk about nearly 150 Sears stores closing so it will be interesting to see how that affects the company. Sears also joined a number of companies in dropping the Trump Home product line, which may provide a big boost for them.
http://www.usatoday.com/story/money/2017/02/12/sears-kmart-drop-trump-home-product-line/97823224/
I agree with all the above statements about the Sears and Walmart rivalry and agree that it probably won't be done. However, it is my opinion, most people shop at Walmart because the prices are lower compared to other places not because they love the Walmart experience or think Walmart is the best store. If they can fix their issues and look at the services they offer they could rebound and potentially rival. I also think like Munir said that dropping the Trump line could be seen as a positive for a lot of people and could make them go out of the way to shop there.
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