RETAILOBSERVER.COM NOVEMBER 2018
6
Moe Lastfogel
moe@retailobserver.com
Moe's Musings Views
Good luck, my friends—
S
ears, the once-dominant retail chain that changed how Americans
shopped and lived, has finally filed for bankruptcy. The 132-year-old
company has been struggling for several years and has been drowning
in debt. The final straw was a $134 million debt payment that wasn't feasible
for Sears to repay.
Sears was once the nation's largest retailer and its largest employer. In its
heyday, it was both the Walmart and Amazon of its time. Formed in 1886 by
railroad station agent Richard Sears, the company started as a watch business
in North Redwood, Minnesota. Sears stores helped reshape America, drawing
shoppers away from the traditional Main Street merchants. Its Kenmore
appliances brand introduced many Americans to labor-saving devices that
changed family dynamics. Its Craftsman tools and their lifetime guarantees
were a mainstay of middle-class America.
Whirlpool (which had started in business more than a century ago selling its
appliances at Sears) pulled its various brands out of Sears and Kmart stores
last year. Once the dominant appliance retailer in the country, Sears accounted
for only 3% of Whirlpool's sales worldwide in 2017.
With 142 more stores closing, this is a substantial opportunity for you as a
retailer to pick up their newly available business in your territory. Not only will
there be sales opportunities, but many employees will become available to you.
Sales staff, office staff, warehouse, and delivery personnel will be looking for
employment. Sears has always been known to have a well-trained staff, and this
means minimal training on your part. I assume liquidation of inventory, vehicles,
and store fixtures will also be available to you. And of course, there will be plenty
of buildings available if any of you are looking to expand your business.
I myself am an ex-Sears employee. I worked for their specialty appliance
division, McPhails, now known as Monark. As of this writing, it's hard to predict
what Monark's fate will be. I wish them much luck in finding a suitable buyer
for their group, as they have great locations and amazing staffs.
SEARS DECLARES
BANKRUPTCY
The end of an era
creates opportunities for
the independent retailer
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