HE is being sold to build senior housing. The end is here. Eddie has a new life boat and it's selling what's left to more successful retailers. it's over my friends.
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No offense, but I wish people who post such stuff also include a link or some evidence. There is zero evidence of what is mentioned in this post anywhere else online. It does not appear to be true, so please don't post unverifiable information. Thank you.
So Lowes is buying all the PR stores or just one?
"Because it's about making the money from the real estate and not running a retail operation. Why is this so hard for some to comprehend?"
Simple, they make much more money off these two stores as a retail operation than what they received for what the real estate/building is worth. We've seen how well it worked in the past when they have sold off their best assets. Why is that so hard for some to comprehend?
"I cannot understand why TransformCo would sell two of their top stores."
Because it's about making the money from the real estate and not running a retail operation. Why is this so hard for some to comprehend?
I Just spoke to a store director the other day about the sales of Kmart and Sears, what is going on is Lowes is buying a Sears in Puerto Rico and Wesfarmers is buying the Kmart in Guam. Knowing this, it wouldn't surprise me that this opens the doors for similar sales in the future as the chain looks for a method to gain some cash but I cannot understand why TransformCo would sell two of their top stores.
Owned real estate in good locations will be Seritage’d. Enter Wesfarmers getting a piece of those spots for Anko expansion and Lowe’s having a hand in selection too.
Anyone who says that owned property won’t be Seritage’d is lying to themselves.
Remember, KMart bought Sears right after KMart filed bankruptcy. At the time Sears was in excellent shape with tons of cash in its coffers and prime real estate on its balance sheet. It would not surprise me if a deal can be made. Eddie would first have to start quietly accumulating enough Lowes stock to get a seat at the board, then ....
At Home seems to be the next Steve & Barry's judging from the empty parking lots and oversized stores.
There is no way Lowe's would want to buy a loser like Sears.
most Kmart stores cannot be subdivided per lease terms. Owners will want the property back to tear down and redevelop, a few leased, Camarillo CA Store will be redeveloped into a larger Vons supermarket and the one on the same land plot closed and redeveloped also after new store opens. Good neighborhood to develop valuable land.
First it was Amazon, now it’s Lowes and Anko. Nothing to see here. No successful retailer has any interest in buying properties and rehabbing. They certainly aren’t going to take the liability of owning Sears and/or Kmart in whole to get them. Any property deals are going to be site-specific and are mostly going to be with developers or REITs.
The Kenmore thing is plausible but it would be some work to turn around the brand with the damage that’s been done over the last several years. It’s way worse off than Crafsman ever was and the inherited liabilities are going to be immense.
Seritage proved that taking a building and subdividing it into 3 or 4 spaces can work. Why would it be out of the rhelm of possibility that Wesfarmers and Seritage couldn’t make a deal around acquired properties so that Anko moves into 20,000 sq ft of a building and the rest is for Seritage to lease as they so wish?
Solid reporting on HQ being sold, the ANKO thing makes no sense. Nothing is more plentiful than retail real estate right now. If the physical stores were in better shape and the right square footage I could maybe get my head around this, but asbesto laden structures that are 50 plus years old are more trouble than they're worth. While an ANKO could easily be interested in a couple of properties, zero chance they want this POS.
There is already a gluttony of home-c-ap brick and mortar stores out there. How can another be successful?
In fact, the flagship Anko location in Lynnwood, WA is at a former Babies R Us. What’s the sq footage in one of those? Can’t be more than 30,000 sq ft. Current KMart Buildings will be subdivided Seritage-style or torn down so that the land can be redeveloped. The rare quality buildings in places like Somers Point, NJ or Bishop, CA will likely be picked up by Wal-Mart.
You think Wesfarmers is interested in using 100% of an existing KMart’s space for Anko? Go on Google Maps and look on Street View at the locations they’re opening in the Seattle area. These will not be Garden Ridge/AtHome sized stores.
https://www.anko.com/find-a-store/
"Anko will fill a void in the US, much as JYSK has in Canada. A 20,000 or so sq ft home retailer that has quality wares."
We already have that...it's called "At Home". And they don't seem to have any more full parking lots than Kmart did.
Makes sense, Wesfarmers will retire the KMart name in the US and use property to expand Anko Stores so that they can compete against Bed, Bath, and Beyond as well as IKEA.
Anko will fill a void in the US, much as JYSK has in Canada. A 20,000 or so sq ft home retailer that has quality wares.
Not entirely unbelievable.
I don’t doubt this, but is there any concrete evidence to look at?