Hoffman Estates, Ill. — Sears Holdings reported a 4 percent decline in comp-store sales at both its Sears and Kmart chains for the nine-week period, ended July 7.
At Sears, major appliances saw the steepest slide while Kmart experienced declines across most categories, the company said. Despite the slump in white goods, majap comps improved over the first quarter.
“We are disappointed with our recent performance,” said CEO Aylwin Lewis, “Although we believe our business has suffered from many of the same factors that have led other retailers to announce disappointing results and lowered expectations our recent performance underscores our ongoing need to become more relevant to consumers while improving our discipline around expense management.”
Sears projects net income for the second quarter, ending Aug. 4, to fall between $160 million and $200 million, compared with $294 million for the year ago period, based on current sales trends. The company expects to end the quarter with about $2.8 billion in cash.
At Sears, major appliances saw the steepest slide while Kmart experienced declines across most categories, the company said. Despite the slump in white goods, majap comps improved over the first quarter.
“We are disappointed with our recent performance,” said CEO Aylwin Lewis, “Although we believe our business has suffered from many of the same factors that have led other retailers to announce disappointing results and lowered expectations our recent performance underscores our ongoing need to become more relevant to consumers while improving our discipline around expense management.”
Sears projects net income for the second quarter, ending Aug. 4, to fall between $160 million and $200 million, compared with $294 million for the year ago period, based on current sales trends. The company expects to end the quarter with about $2.8 billion in cash.
This is one of those stories that I resent covering, but feel honor-bound to do so, out of a sense of completeness. The word that Sears is out of touch with consumers is hardly news. I think we all now know that JC Penny, Target and Wal-mart have been eating Sears' lunch for some time now.
Face it, do you or anybody you know shop there? That's what I thought.
It doesn't make it any better that we keep hearing the same tired old excuses for why the venerable retailer can't seem to pull it off. Here's a hint: stop blaming your failures for things that are beyond your control, and better control the things that are in your grasp. That's great advice for an individual, and even better advice for a corporation. Retail isn't hard: it's selling stuff to people. Anybody who starts shuffling their feet and mumbling otherwise is just making excuses for their own lack of ability.
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3 comments:
actually, I shop at Sears all the time, and love it! Although it might also be a matter of convenience - as odd as it is, I am closer both at work and at home to a Sears than I am a Wal-Mart.
Yes, but you're an exceptional individual in most respects. I tip my hat to you for being able to find something at Sears that you want to buy. Every time I've gone there in the past few years, I've left empty handed.
While I would not think of Sears for other things, despite my department store background, Sears can be an excellent place to shop for major appliances. My experience there has been better than at a major speciality store.
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