Sear hasn't been able to make the transition to another walmart.It has been trying but hasn't been able to do so.

Target may have overbuilt in some areas.

I am hoping there will be some good deals/sales on videogames I like as well as some computer equipment.

Guess our beloved Broadway Kmart is still making money. Huh.

My cousin manages the Cleveland store. Hope he comes out of this ok.

I was wondering how many people work at a typical Sears or Kmart. I'm guessing it's a bunch. There will no doubt be lots of people out of work. Good luck to your cousin. Would he relocate if they offered?

Yes, it's amazing after all those years of Sears being America's store, they can't find their spot in this market.

According to Wikipedia (?):

The Sears holding company has 3,900 locations, of which 926 are Sears stores. They also have Sears Grand, Sears Hometown Stores, Sears Hardware, Kmart, Big Kmart, and Super Kmart.

There are 3,803 Walmart stores in the US (706 Walmart Discount stores, 2,913 Wal-Mart Supercenters, and 184 Walmart Markets).

They have a lot of competition these day. Sears is the tenth largest retailer by annual revenue in the United States trailing behind Walmart, Kroger, Target, Walgreens, The Home Depot, Costco, CVS Caremark, Lowe's and Best Buy.

Sears Holding's most recent annual report has this interesting tidbit in the "risk factors" section:

"Affiliates of our Chairman, whose interests may be different than your interests, exert substantial influence over our Company.

Affiliates of Edward S. Lampert, the Chairman of our Board of Directors, beneficially own approximately 60% of the outstanding shares of our common stock. These affiliates are controlled, directly or indirectly, by Mr. Lampert. Accordingly, these affiliates, and thus Mr. Lampert, have substantial influence over many, if not all, actions to be taken or approved by our shareholders, including the election of directors and any transactions involving a change of control.

The interests of these affiliates, which have investments in other companies, may from time to time diverge from the interests of our other shareholders, particularly with regard to new investment opportunities. This substantial influence may have the effect of discouraging offers to acquire our Company because the consummation of any such acquisition would likely require the consent of these affiliates."

Looking up this Lampert guy, who is apparently a real piece of work (Skull and Bones, Goldman Sachs, etc.), reveals what is most likely the major source of the company's pain.

The link in the original post above summarizes their current troubles. See also "Sears as Lampert’s Mismanaged Asset Loses Customers to Macy’s."

And here's an older profile on the guy and his Sears-Kmart merger deal: The Marriage From Hell.

It sounds like he's an investment banker/hedge fund operator who doesn't know much about retailing yet is micro-managing the company into the ground.

Looking at their financial statements, their sales are pretty strong at $40+ billion, but their expenses are increasing as same store sales decline. Losses are accelerating, their pensions are underfunded, they are burning through cash, and they are piling up debt. One analyst reports they are tapping their credit lines to keep the lights on in the 4th quarter when other retailers are traditionally flush with cash.

Apparently, one brilliant idea is to recover value by closing stores and selling the real estate. The problem is, as noted by analysts, their Sears stores are primarily in malls which already have high vacancy rates and their Kmart stores are in less desirable locations. In other words, nobody wants their real estate, especially in this economy.

One would think their Kenmore and Craftsmen brands would have some value to salvage. (Those are probably part of the $4 billion or so in "goodwill" on their balance sheet that will no doubt have to be severely written down.) But they don't actually make any of the Kenmore line, and similar (or exact) products with manufacturer nameplates are now widely available from competitors like Lowes, Home Depot and Best Buy. And who buys tools any more?

Looks like a death spiral to me. It's hard to imagine how anybody can pull it out. It's also very sad for a company that has been around since 1893 and was once the world's largest retailer. And look who's at the helm - yet another Master of the Universe.

UPDATE: New York Times: ...thinking you are a genius can turn out to be a very expensive folly.