Thread regarding Sears layoffs

My views on Sears, as a former laid off employee

After about a decade at Sears, from being in the trenches at the store to meeting with VPs, I think I have a pretty good idea of Sears and its downfalls.

First and foremost Eddie cannot lose, short of going to jail. He has money and control, and will always stack the deck in his favor. Trying to keep Sears as a retailer isn't going to happen, and not for the reasons you would think. To revitalize Sears you would have to take risks, investing in stores and infrastructure, Eddie won't do this. Sears is worth more failing as long as it fails slowly.

Think of Sears as a ship loaded with cargo, (inventory, brands and property) if you know repairs to your ship would cost more than buying a brand new ship, the smart thing to do is buy a new ship and move all your cargo over... but that takes time, but is lower risk than anything else.

Inventory: Sears has been cutting back on inventory as well as purchasing "off price" merchandise to resell. Additionally they have been moving back to owned DC vs outsourcing DCs to give themselves more control over the inventory without outside eyes.

Brands: Sears no longer owns its iconic brands, Kenmore, Diehard and Craftsman were sold to another corporation that Eddie owns called KCD, they then required Sears to pay a royalty to use the brands (from my understanding this royalty was actually higher than outside brands like disney and such) additionally I believe they have outright sold the rights to at least Craftsman and DieHard to other companies.

Property: Sears sold multiple locations (or have property backed loans) to a REIT company called Seritage (want to guess who owns that one? If you guessed Eddie... ding ding ding) Sears then leases them back, to keep the store afloat to keep the value of the property up until someone wants to buy the location, then the store gets closed for "performance" reasons

Eddie keeps playing both sides of the deals, funneling money out of Sears and into his other investments. I have even heard this about IT as well... as he has part ownership in the Offshore IT service, so he can layoff more people and funnel the money and work to India.

Eddie is going to keep this ship afloat until he can s--- all the value out of it, then let the husk crash where it may.

There are only 2 ways for this plan to fail, everyone quits before he can sell everything, or he gets found doing something illegal. That said, I think he is greasy enough and smart enough to stay just on this side of legal, while straying far past the line of morals. My prediction is that after this all goes down, new laws will be created from allowing something like this from ever happening again.

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| 1642 views | | 6 replies (last February 26, 2017) | Reply
Post ID: @OP+M0Abrdb

6 replies (most recent on top)

What 3rd party programs? SYW or something else?

Apparently Sears is a SYW partner like Uber so is that what you mean?

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Post ID: @2hxf+M0Abrdb

Actually, quite brilliant. Maybe not the most moral thing to do but from a business standpoint, brilliant.

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Post ID: @2atw+M0Abrdb

Eddie is setting up his final golden egg and preparing it for sale! He has invested too much time and money in his SYW rewards program. Most recently, leaders have pushed (demanded!) & set unrealistic high goals to enroll more members. why???? I can see Eddie harvesting ALL that membership info & selling to the highest bidder! He even sets up his own employees to enroll in scam-ridden 3rd party programs (asking for your SSN, personal & bank account info...if you are crazy enough to do it) just so he reaps more $$$. SAD!! He "loans" money to the company, then pays himself back with the most prized real estate holdings... someone arrest this weasel!

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Post ID: @2wom+M0Abrdb

Interesting write up thanks

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Post ID: @tvc+M0Abrdb

Reality is that everyone with 1/2 a brain knew this was going to happen when KM was acq'd out of bankruptcy and Sears was merged in to get the real estate

He knows financial shenanigans and absolutely nothing about retail or average joe sixpack interaction

but..... The Great Equalizer always lurks

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Post ID: @ggi+M0Abrdb

Amazing post.

Thanks for sharing...

#thankyou

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Post ID: @zye+M0Abrdb

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