# Sears Canada (SCC.TO)



## kjmcrae (Apr 3, 2009)

Sears Canada said to be preparing to seek creditor protection as cash crunch deepens

The vultures are circling... Any chance this company can survive?


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## like_to_retire (Oct 9, 2016)

I grew up shopping at Sears (Simpson-Sears). It was a many splendored thing in its time. You could buy everything in one store - what a novel idea.

It's model today is an exercise in frustration customers. They haven't changed much with the times, only to make it worse. Walk in the front entrance and there's no center isle to get to the department you want, unless its woman's perfume and jewellery. They force you to walk through a rat maze of aisles to expose you to as many departments as possible. The first escalator you encounter is always the down, so that you're forced to see even more departments to find the up. A recent change has been to remove all the department cash registers that forces you to find the one location in the store where they have all the cash registers. This location is at the very rear of the store so you are again required to pass through even more departments. I can't think of a better way to lose customers. What are they thinking?

I see little chance of this company surviving.

ltr


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## sags (May 15, 2010)

A sign of the times, that isn't just Sears. The entire retail sector has big problems. Consumers are tapped out.


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## STech (Jun 7, 2016)

like_to_retire said:


> I grew up shopping at Sears (Simpson-Sears). It was a many splendored thing in its time. You could buy everything in one store - what a novel idea.
> 
> It's model today is an exercise in frustration customers. They haven't changed much with the times, only to make it worse. Walk in the front entrance and there's no center isle to get to the department you want, unless its woman's perfume and jewellery. They force you to walk through a rat maze of aisles to expose you to as many departments as possible. The first escalator you encounter is always the down, so that you're forced to see even more departments to find the up. A recent change has been to remove all the department cash registers that forces you to find the one location in the store where they have all the cash registers. This location is at the very rear of the store so you are again required to pass through even more departments. I can't think of a better way to lose customers. What are they thinking?
> 
> ...



I haven't been inside a Sears in years, and they're never on my mind when I think of a retailer. Yesterday I had to because I needed blades for my Craftsman riding mower. Other retailers don't carry them, and I didn't want to wait for an online order. 

Walking into a Sears now, is like looking at the skeleton of a former 7 foot body builder. The aisles are now wide open, and you can't help but notice the vast empty floor space. They have a few shelves, with a few products on them. It was neat and tidy. I had no trouble finding my way around the store, and I had no issue finding a sales associate to help me. On top of that, they had my part in stock, and it was 20% cheaper than the best online price I could find.

Clearly they're desperately trying their best, and even outside the store they have giant banners saying to check out the new Sears, or something like that. But I really believe it's too little, too late. This is the next Eaton's. It's done. It's a shame really, because I too have fond memories of the Sears catalogue, and Craftsman tools (of yesteryear's quality) have served me well. I ended up buying all of the blades they had for my mower, because this won't last.


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## Eclectic12 (Oct 20, 2010)

sags said:


> A sign of the times, that isn't just Sears. The entire retail sector has big problems. Consumers are tapped out.


It's been downhill IMO for decades ... OOH, it was great that they ordered the needed part for the out of the box damaged one with no hassles. OTOH, for a stocked product - it shouldn't take nine months for said part to come in.


Cheers


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## fatcat (Nov 11, 2009)

like many boomers raised on sears, i tried hard to like them in the last few years but they have been doing almost nothing right so this had to happen ... my refrigerator extended warranty just ended so i guess it's ok to see them go under :-(

i thought they had great real estate but apparently not as the article says and i wonder who the heck will fill all the spaces with retail in such trouble especially at malls

i wonder about best buy next ? ... their stores look pretty dismal, not well stocked and fairly empty except at christmas and their website is awful ... not as bad as sears but not very good


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## kcowan (Jul 1, 2010)

One of our investors in 1999 turned around Sears Roebuck 25 years ago (The Barclay Brothers from England). So it is not new for Sears to get into serious trouble.

Reference


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## GreatLaker (Mar 23, 2014)

This is not a new story for Sears. I read this 1988 book years ago in business school:
The Big Store: Inside the Crisis and Revolution at Sears
https://www.goodreads.com/book/show/71698.The_Big_Store
Not a bad book, but dry.

Businesses need to be vigilant and many or most need to change constantly and reinvent themselves on a regular basis. That's how Amazon, Google, GE, IBM etc stay relevant.

I am a late baby boomer, typical Sears customer. I used to go there for a lot of clothes, home goods, bedding etc. I have not bought anything at Sears in 4 years since they closed their store in the Toronto Eaton Centre (which probably still had some stuff for sale since it was Eatons).


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## 30seconds (Jan 11, 2014)

I find the Sears and the Bay have similar lay outs.. but I actually buy stuff at the Bay.


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## Mortgage u/w (Feb 6, 2014)

Eaton's didn't make it.
Zellers didn't make it.
Target Canada failed miserably.
Kmart were no longer able make it on their own.
Sears will unfortunately have the same fate.

The only revamp I could think of is if they become an appliance store since it seems their Craftsman and Kenmore brands are still popular (even though they are made by other giants). But then again, how much profit can they churn from that alone?


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## gardner (Feb 13, 2014)

Mortgage u/w said:


> if they become an appliance store


I could see them keeping the appliance specialty business and closing down the general merch side of things.

I don't really understand how they could have missed transitioning their catalogue business to the interwebs. They were ideally positioned with the catalogue warehouse and delivery side of things and they should have remained highly relevant in that space.


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## AltaRed (Jun 8, 2009)

Pretty obvious that management was asleep at the wheel.

Sears has been experimenting with Sears Home but they have not created any exceitement in those stores to entice people to come in. I've been in a few of them every year or so just as a validity check against something like a patio set I was purchasing elsewhere and the atmosphere is sullen. I think one problem is their (relatively) aged workforce on the floor. There is just no one that emanates exurberance and that just drains any enthusiasm amongst shoppers.


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## nobleea (Oct 11, 2013)

Mortgage u/w said:


> The only revamp I could think of is if they become an appliance store since it seems their Craftsman and Kenmore brands are still popular (even though they are made by other giants). But then again, how much profit can they churn from that alone?


They've already sold their craftsman brand off.


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## My Own Advisor (Sep 24, 2012)

sags said:


> A sign of the times, that isn't just Sears. The entire retail sector has big problems. Consumers are tapped out.


Totally agree. Money is drying up and people are putting all their money into their homes vs. other consumer goods. There is also far more online choice and competition.

I also had a similar observation a few years ago AR in an Ottawa Sears Home store. The employees looked like zombies.


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## Koogie (Dec 15, 2014)

Mortgage u/w said:


> Eaton's didn't make it.
> Zellers didn't make it.
> Target Canada failed miserably.
> Kmart were no longer able make it on their own.
> Sears will unfortunately have the same fate.


It might be a sign of aging (or the death of retail) but I have this conversation several times a year with friends/family in their 40s and 50s. We reminisce about retail stores or brands that are no longer around.

I usually bring up Consumers Distributing. DW usually mentions Pop Shoppe (which is making a comeback).

I lived in the sticks. I remember going to the beer store and liquor store when I was a little kid and Dad writing down his order on paper and the workers bringing it out from the back.

Get off my lawn.


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## Mukhang pera (Feb 26, 2016)

Koogie said:


> I lived in the sticks. I remember going to the beer store and liquor store when I was a little kid and Dad writing down his order on paper and the workers bringing it out from the back.


I lived in Toronto. Same thing. The product was kept out of sight and brought out only when paid for.


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## like_to_retire (Oct 9, 2016)

I remember the guy would bring your bottle out from the back and he would wrap it up in a sheet of brown waxed paper. He had a special way of folding it. The counter had a stack of those sheets sitting there for the job.

ltr


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## ian (Jun 18, 2016)

It was fairly obvious that Sears was on the way down. We ordered something on line a few years ago. What an awful website compared to the Bay or anyone else. Plus we had to pick it up at the store. I assumed then that they would go down. Seems to me that they had the ideal opportunity to move a catalogue operation to an on line operation. They blew it big time. I cannot remember the last time we actually shopped in a Sears store. 

Then, the new owners started to sell the real estate and leases, and dividend out the cash. Writing was on the wall. I assume that Sears did not have enough cash or credit to buy/finance product for the Christmas season. I feel sorry for their employees. Hope the pension plan, if there is a DB plan, is well funded.

I tried to make a list of the dept. stores that have gone down for whatever reason. Eatons, Simpsons, Simpsons Sears, Ogilvy Montreal, Olgilvy Ottawa, Dupuis, Woodwards, not to mention the Zellers, Targets, Woolworths/Woolco. I am sure that there are move. Amazon are booming. Just came back from Costco...amazing what volume they are doing.


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## jargey3000 (Jan 25, 2011)

Mukhang pera said:


> I lived in Toronto. Same thing. The product was kept out of sight and brought out only when paid for.


we called it the "bond store" back then, for some reason....


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## Mukhang pera (Feb 26, 2016)

jargey3000 said:


> we called it the "bond store" back then, for some reason....


I seem to recall that term. Looking back, I also recall that all liquor sold at the LCBO had a strip of paper, with very official-looking printing on it, that went over the cap and always bore the words" "Bottled in Bond". Perhaps as if to say: "In Bond We Trust".


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## STech (Jun 7, 2016)

Very interesting interview of a former Canadian CEO by the CBC.

http://www.cbc.ca/player/play/974065731514/


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## ian (Jun 18, 2016)

It was fairly obvious a few years ago that Sears was going down. You only had to visit the store and compare the to the Bay. Same with on line shopping.

We saw the Bay go through a complete upgrade of their stores. Physical renos and displays. What was Sears doing? Nothing. Maybe moving a manequin a few feet over or putting more racks in the the aisles for customers to dodge around. We simply stopped going to Sears stores. They gave us no reason to go, and several reasons not to bother with them.

We tried Sears on line once. Once was enough-awful. We tried the Bay on line. Very good, and we continue to order things as needed. 

It was clear to us the Sears was not spending money on real change. They were spending money by loosing money, not making it.

Even the Bay is in trouble, despite being miles and generations ahead of Sears in the retailing environment.

This is what happens when you ignore your customers and try to suck out every dime you can from the company in the form of dividends rather than re-investing in business. This outcome was started several years ago.

Who's kidding whom about the current situation. Existing Sears stores will probably be experiencing a dramatic decrease in business. Who wants to buy a major purchase from a store that is going down? My guess is that they will try to hang on until early Jan. Suck out any Christmas trade, January clearance trade, and then shutter the remaining stores. But who really knows other than the bean counters and the creditors.


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## kcowan (Jul 1, 2010)

ian said:


> Who wants to buy a major purchase from a store that is going down? My guess is that they will try to hang on until early Jan. Suck out any Christmas trade, January clearance trade, and then shutter the remaining stores. But who really knows other than the bean counters and the creditors.


Good guess Ian!


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## TomB19 (Sep 24, 2015)

If an investor were to come along and give Sears a few billion, they would continue doing exactly what they have been doing until the money runs out again.

Meanwhile, CTC is doing well.


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## AltaRed (Jun 8, 2009)

CTC might be doing well but I rarely go into the store (both local stores here are dirty and junky) and I wouldn't touch their auto service. To each his/her own I suppose.

They do provide a good source of goods in smaller centres of 50,000 or less.


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## kcowan (Jul 1, 2010)

The irony is the SCC was strong in distribution with tiny storefronts in rural town across Canada. They could have carved a niche for big ticket items like furniture and appliances....or fashion items, but with a different supplier.


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