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Will Sears Kmart Last Another Year?

Will Sears Kmart Last Another Year?

The following is one person’s blunt analysis of whether the once retailing giants will last much longer.  Your thoughts?

Esquire Article

It was a great story, but it was not a retail story. It was a real estate story, perfect for 2005. And then the real estate market crashed.

All of a sudden, the whole strategy began to unravel. With no interest from big-box retailers, the merged entity — now known as Sears Holdings — had to struggle to find its footing as actual businesses. It’s been a disaster. In the six years since the merger, revenue has declined every single year and income has fallen a shocking 84 percent. This year, the company has dropped to tenth place among top retailers for the first time ever. In a recovering retail climate, Sears is the only store in its category to show negative same-store sales — down 4 percent. Kmart has fallen from third in its category to a very distant fourth — even Target ($66 billion) and Costco ($59 billion) have pulled away from Kmart’s sorry $17 billion.