http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
Faded retail powers Sears, Roebuck and Co. and Kmart Holding Corp. hope
their $11 billion merger can create a profit powerhouse while helping
to reverse years of lagging sales.
The pairing of longtime industry rivals was poised for final clearance
Thursday, four months after the proposal engineered by Kmart Chairman
Edward Lampert was unveiled.
Shareholders of, first, Kmart and then Sears were expected to approve
the merger at separate meetings at Sears' sprawling headquarters in
suburban Hoffman Estates. Barring a last-minute hitch, the complex will
now house a new retail titan named Sears Holdings Corp. with $55
billion in revenue, 3,800 stores and an uncertain future.
The merger will create the nation's third-biggest retailer behind
Wal-Mart Stores Inc. and Home Depot Inc. and bring together Sears' top
brands Craftsman and Kenmore with Kmart's successful Martha Stewart
(news - web sites) and Joe Boxer product lines. It also furthers Sears'
strategy of moving away from shopping malls to the more profitable
off-mall sites that Kmart stores typically occupy.
But since each firm has struggled on its own, it remains to be seen
whether the combined company can manage to keep up with thriving
competitors.
Lampert, whose investment firm controls Kmart and is Sears' largest
individual shareholder, has orchestrated a financial turnaround at
Troy, Mich.-based Kmart since it emerged from bankruptcy in 2003. The
discounter turned a $1.1 billion profit last year, although it was
largely the result of selling off real estate as sales continued to
decline.
He and Sears chairman and chief executive Alan Lacy, who will be CEO
and vice chairman under Lampert at Sears Holdings, say the merger
should save $500 million over the next three years. That means
announcements of widespread store closings and staff cuts may be
imminent.
After boosting profits at Kmart, Lampert faces a similar challenge at
Sears, where sales have slipped lower for four consecutive years and
the $1.9 billion acquisition of Lands' End three years ago hasn't
worked out. He has already signaled a change in direction last month
with the announcement that dozens of earlier-acquired Kmart stores
would be converted to a new mid-sized store format called Sears
Essentials.
Analysts are skeptical about prospects for a retail turnaround.
"We think Eddie has the Midas touch, and in the short term I expect him
to cut costs out of the business and extract value from some of Sears'
non-strategic assets," said retail analyst Kim Picciola of
Chicago-based Morningstar Inc. "But over the long term, we just don't
see this combined retailer effectively competing against the Wal-Marts
and Targets of the world."
Retail consultant Howard Davidowitz expects Lampert to take the same
approach at Sears to generate cash that he did at Kmart: sell assets,
cut costs, reduce inventory and raise prices.
"He recognized Kmart was a cadaver and he monetized it," Davidowitz
said.
"For the short term, it's very exciting. But for the long term, watch
out," he said of the strategy, forecasting a "bleak outlook" for Sears
unless the move away from malls is successful.
Independent retail analyst Richard Hastings thinks that by maintaining
Sears' strength in appliances and adding Kmart's Martha Stewart tag,
the new company can prosper.
"It's about profitability, it's not about sales," he said. "It may get
smaller, but ... it's going to be more profitable, more stable, with a
better strategy. And it'll be more competitive with Wal-Mart and
Target."
USENET READER wrote:
> What is "BORG"? I know the Star Trek BORG, but not what you are
> referring to here.
BORG means Big Orange Retail Giant, in short Home Depot.
Also, along this thread, Craftsman tools (at least the hand tools)
might be better off if they separate them as someone above mentioned,
but, as far as I am concerned, the Kenmore brand and the Craftsman
power tools brand (the ones that develop 2HP if they have a tail wind
are no load) can BOTH be discontinued. I have had some major pains in
the butt from Sears and their way of servicing Kenmore appliances.
That's why I won't buy another one. Sears has also adopted a new
attitude around our area. If you ask about the difference in cost for
the items on the shelf versus the Sears catalog store or online
shopping with Sears, the store people quickly make it VERY CLEAR that
the retail stores and online shopping are two completely separate
entities. They won't even deal with themselves.
Oh well, just my 2 cents worth.
Paul
I'd love to see how they turn a Kmart into a "Sear Essentials" store.
They claim they don't shut them down. However, they keep them running
while they change them over.
That sounds nice, but 90% of the Kmart stores here are so dirty and run
down they would need a wrecking ball as part of any changeover to Sears
and actually running the store while doing the remodeling needed would
be almost impossible.
I hope this isn't a sign that a Sears Essentials store is simply a
cleaner Kmart with a Sears sign on the front. If it is, it will fail.
You have to strip these buidings and totally redo them to make them
someplace a customer wants to shop.
Another Phil wrote:
> Paul:
>
> I fully agree with your comments as how the brands are today.
>
> Completely agree.
>
> But suppose, just suppose, what would happen under a different
> corporate entity? Could the brands, and their customer service
> be revived. Could Sears Craftsman and Kenmore service parts
> web page be better? Could a revived corporate entity actually
> co-ordinate Web and Show-room sales so the same warehouse
> and installation people installs the Kenmore major appliances
> without the current bickering and backstabbing?
>
> My point was, and is, Craftsman and Kenmore Service Parts could
> be doomed by this merger. Consider your own personal experiences
> with "customer service" with Kmart and extrapolate that to Craftsman
> and Kenmore "customer service" in the future.
>
> Phil
Phil,
You raise a good point, but, the way I see it, a different corporate
entity may not be the answer. Sears has changed their "corporate
standards" a few times that I can think of... For one, have you noticed
that there are Craftsman Tools (with lifetime warranties) AND they are
now fronting Sears brand handtools with NO warranty. Cheaper price and
cheaper tool. Also, as I said before, the online sales and retail store
sales are separate entities now. They used to be more than happy to
order items that the customer couldn't find at the retail stores, now,
they couldn't care less. The new corporate entity idea will work, but,
ONLY if the new corporate entity creates and enforces new policies that
truly demonstrate that they are there to help the customer. That means
customer service of ordering out-of-stock items (like a catalog store),
quickly and efficiently getting to customers that own Kenmore
appliances that need repair, QUICKLY (not more than a month) getting
the necessary tools and parts to repair those appliances, AND MOST OF
ALL, selling Craftsman, Kenmore, or whatever brands of goods that are
really good enough for people to want to own. Why else did they have
the corporate idea a few years back to start selling so many other
brands?
I think they were starting to realize that their motto had changed
from: "Sears where America shops" to "Sears where nobody shops"
Paul
Paul:
I fully agree with your comments as how the brands are today.
Completely agree.
But suppose, just suppose, what would happen under a different
corporate entity? Could the brands, and their customer service
be revived. Could Sears Craftsman and Kenmore service parts
web page be better? Could a revived corporate entity actually
co-ordinate Web and Show-room sales so the same warehouse
and installation people installs the Kenmore major appliances
without the current bickering and backstabbing?
My point was, and is, Craftsman and Kenmore Service Parts could
be doomed by this merger. Consider your own personal experiences
with "customer service" with Kmart and extrapolate that to Craftsman
and Kenmore "customer service" in the future.
Phil
> Also, along this thread, Craftsman tools (at least the hand tools)
> might be better off if they separate them as someone above mentioned,
> but, as far as I am concerned, the Kenmore brand and the Craftsman
> power tools brand (the ones that develop 2HP if they have a tail wind
> are no load) can BOTH be discontinued. I have had some major pains in
> the butt from Sears and their way of servicing Kenmore appliances.
> That's why I won't buy another one. Sears has also adopted a new
> attitude around our area. If you ask about the difference in cost for
> the items on the shelf versus the Sears catalog store or online
> shopping with Sears, the store people quickly make it VERY CLEAR that
> the retail stores and online shopping are two completely separate
> entities. They won't even deal with themselves.
>
> Oh well, just my 2 cents worth.
>
> Paul
>
Hax Planks <[email protected]> writes:
>The problem with Sears and K-mart is that they are old and Wal-mart and
>the BORG are new. If you are new, you build big new stores in the best
>and most affluent locations in exurbia near the busiest highways. If
Sears has built at least one brand new store here in the Minneapolis,
Minnesota area. Actually, they built a small Sears store about 6 or 7
years ago, and then they built a full size store on one level about a mile
away. This is a big box style store, not an anchor store in an enclosed
mall.
The only thing I buy from Sears is Kenmore appliances and Craftsman hand
tools. I believe they still have a good value in appliances.
I avoid Kmart like the plague, but the local Kmart was recently remodeled
on the outside and looks like new. I have no idea if they touched the
grungy interior.
Brian Elfert
I don't know who was the author of this, but it's too good as a description
of the merger between K-Mart and Sears:
"Where America Shops" meets "Where America Shoplifts"
Tom Dacon
"Too_Many_Tools" <[email protected]> wrote in message
news:[email protected]...
> http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
>
> Faded retail powers Sears, Roebuck and Co. and Kmart Holding Corp. hope
> their $11 billion merger can create a profit powerhouse while helping
> to reverse years of lagging sales.
>
> The pairing of longtime industry rivals was poised for final clearance
> Thursday, four months after the proposal engineered by Kmart Chairman
> Edward Lampert was unveiled.
>
> Shareholders of, first, Kmart and then Sears were expected to approve
> the merger at separate meetings at Sears' sprawling headquarters in
> suburban Hoffman Estates. Barring a last-minute hitch, the complex will
> now house a new retail titan named Sears Holdings Corp. with $55
> billion in revenue, 3,800 stores and an uncertain future.
>
> The merger will create the nation's third-biggest retailer behind
> Wal-Mart Stores Inc. and Home Depot Inc. and bring together Sears' top
> brands Craftsman and Kenmore with Kmart's successful Martha Stewart
> (news - web sites) and Joe Boxer product lines. It also furthers Sears'
> strategy of moving away from shopping malls to the more profitable
> off-mall sites that Kmart stores typically occupy.
>
> But since each firm has struggled on its own, it remains to be seen
> whether the combined company can manage to keep up with thriving
> competitors.
>
> Lampert, whose investment firm controls Kmart and is Sears' largest
> individual shareholder, has orchestrated a financial turnaround at
> Troy, Mich.-based Kmart since it emerged from bankruptcy in 2003. The
> discounter turned a $1.1 billion profit last year, although it was
> largely the result of selling off real estate as sales continued to
> decline.
>
> He and Sears chairman and chief executive Alan Lacy, who will be CEO
> and vice chairman under Lampert at Sears Holdings, say the merger
> should save $500 million over the next three years. That means
> announcements of widespread store closings and staff cuts may be
> imminent.
>
> After boosting profits at Kmart, Lampert faces a similar challenge at
> Sears, where sales have slipped lower for four consecutive years and
> the $1.9 billion acquisition of Lands' End three years ago hasn't
> worked out. He has already signaled a change in direction last month
> with the announcement that dozens of earlier-acquired Kmart stores
> would be converted to a new mid-sized store format called Sears
> Essentials.
>
> Analysts are skeptical about prospects for a retail turnaround.
>
> "We think Eddie has the Midas touch, and in the short term I expect him
> to cut costs out of the business and extract value from some of Sears'
> non-strategic assets," said retail analyst Kim Picciola of
> Chicago-based Morningstar Inc. "But over the long term, we just don't
> see this combined retailer effectively competing against the Wal-Marts
> and Targets of the world."
>
> Retail consultant Howard Davidowitz expects Lampert to take the same
> approach at Sears to generate cash that he did at Kmart: sell assets,
> cut costs, reduce inventory and raise prices.
>
> "He recognized Kmart was a cadaver and he monetized it," Davidowitz
> said.
>
> "For the short term, it's very exciting. But for the long term, watch
> out," he said of the strategy, forecasting a "bleak outlook" for Sears
> unless the move away from malls is successful.
>
> Independent retail analyst Richard Hastings thinks that by maintaining
> Sears' strength in appliances and adding Kmart's Martha Stewart tag,
> the new company can prosper.
>
> "It's about profitability, it's not about sales," he said. "It may get
> smaller, but ... it's going to be more profitable, more stable, with a
> better strategy. And it'll be more competitive with Wal-Mart and
> Target."
>
Hax Planks <[email protected]> writes:
>If K-mart/Sears is to make a serious go, then they need to
>build new, build big and compete on price.
If "compete on price" means "ask the supplier to degrade the
product so we can sell it cheaper", I can think of better ways to
compete. They need to do something *better* than the competition,
not just copy them.
Shop Smart, shop S-Mart.........
"Brent Beal" <[email protected]> wrote in message
news:[email protected]...
>
> "Too_Many_Tools" <[email protected]> wrote in message
> news:[email protected]...
> >
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
> >
> >So, is it now called Kears or S-mart???
>
>
Richard Cline wrote:
>
...
> ....Craftsman does carry a line with a Professional
> name that is a high qualilty tool.
I'd qualify that to "perhaps higher quality than equivalent
Craftsman-branded tool"... :)
My experience w/ them is that there's a lot of variation there as well,
and few if any that I would rate as really "high" quality w/o a
caveat...
IM(NSH)O, YMMV, $0.02, etc., ...
On 25 Mar 2005 08:40:55 -0800, "Too_Many_Tools" <[email protected]>
wrote:
>http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
>
>Faded retail powers Sears, Roebuck and Co. and Kmart Holding Corp. hope
>their $11 billion merger can create a profit powerhouse while helping
>to reverse years of lagging sales.
>
... snip
>Lampert, whose investment firm controls Kmart and is Sears' largest
>individual shareholder, has orchestrated a financial turnaround at
>Troy, Mich.-based Kmart since it emerged from bankruptcy in 2003. The
>discounter turned a $1.1 billion profit last year, although it was
>largely the result of selling off real estate as sales continued to
>decline.
>... snip
>smaller, but ... it's going to be more profitable, more stable, with a
>better strategy. And it'll be more competitive with Wal-Mart and
>Target."
Don't know how long it's going to last (it's too late anyway), but folks
who bought into Kmart stock since the reorg have seen a *huge* profit in
less than a year. Kmart is now trading around $130. One year ago it was
trading at $40. In May 2003, it was $12. I took a look when it first
re-issued and said "no way!".
Probably in the long term, the "no way!" attitude was correct -- but for
those with the brazos to get in and get out -- that would have been a major
win.
+--------------------------------------------------------------------------------+
The absence of accidents does not mean the presence of safety
Army General Richard Cody
+--------------------------------------------------------------------------------+
Hax Planks writes:
>If K-mart/Sears is to make a serious go, then they need to
>build new, build big and compete on price.
IMHO, the purpose of the combination of these businesses is to covert as
many of the fixed assets as possible into liquid assets as fast as possible.
Don't think it will take 10 years to liquidate Kmart-Sears.
I still miss the "blue light special".
Lew
Sam wrote:
>> Just be careful don't buy any Kmart stock, or some day you'll have
>> to eat it like a lot of people did before they previously filed
>> chapter 11! I'll bet money that they have to again in a year or 2.
>>
>>
[snip]
Now, nobody does woodworking naked. Has anyone heard what will happen to
Land's End? I thought it was a going concern and now that Sears owns it
and K-Mart is going to start putting their 2 cents into the catalog, too,
who knows what will happen next?
Josie
Another Phil says...
> Boy oh boy, am I going to get flamed on this opinion. Wait a moment while I
> get out the leather breeches.....
>
> The problem with any super major corporation is that the public interacts
> with the worker bees, who in turn have team leaders, supervisors, managers,
> and so on up the management ladder.
The problem with Sears and K-mart is that they are old and Wal-mart and
the BORG are new. If you are new, you build big new stores in the best
and most affluent locations in exurbia near the busiest highways. If
you are old, then your locations are smaller, less clean, less modern
and quite possibly in declining neighborhoods and/or buried deep in city
traffic. If K-mart/Sears is to make a serious go, then they need to
build new, build big and compete on price. If they can't or won't do
that, then they should liquidate now and stop flogging a dead horse.
In article <[email protected]>, "Ryan" <[email protected]> wrote:
[snip]
>You have to strip these buidings [K-Marts] and totally redo them to make them
>someplace a customer wants to shop.
Isn't that the truth. I remember reading a few years ago that Wal-Mart's
market research showed that more than half of the people shopping at Wal-Mart
had a K-Mart store closer to home but went to Wal-Mart anyway.
--
Regards,
Doug Miller (alphageek at milmac dot com)
Nobody ever left footprints in the sands of time by sitting on his butt.
And who wants to leave buttprints in the sands of time?
"Brian Elfert" <[email protected]> wrote in message
>
> I avoid Kmart like the plague, but the local Kmart was recently remodeled
> on the outside and looks like new. I have no idea if they touched the
> grungy interior.
>
> Brian Elfert
We have a new (3 years) K Mart in town and I often go there rather than Wal
Mart. The big advantage is parking. Almost no one goes to the K while the
Wal store is jammed. For the most part though. Wal Mart has better
selection and brands though.
Kmart is a phony organization. What p o's me about them is that a while back
they were filing for chapter 11 bankruptcy and caused stockholders like me
to lose all their shares. Now all of a sudden they reorganize and are able
to buyout Sears and become the 3rd largest retailer by screwing previous
stockholders out of their shares.
Warning! Becareful about purchasing their stock. Wal-Mart will eventually
clobber them and they will again file for chapter 11. They are already
taking a huge loss on their Lands End product line.
My 2 cents worth on Kmart.
"Too_Many_Tools" <[email protected]> wrote in message
news:[email protected]...
>
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
>
> Faded retail powers Sears, Roebuck and Co. and Kmart Holding Corp. hope
> their $11 billion merger can create a profit powerhouse while helping
> to reverse years of lagging sales.
>
> The pairing of longtime industry rivals was poised for final clearance
> Thursday, four months after the proposal engineered by Kmart Chairman
> Edward Lampert was unveiled.
>
> Shareholders of, first, Kmart and then Sears were expected to approve
> the merger at separate meetings at Sears' sprawling headquarters in
> suburban Hoffman Estates. Barring a last-minute hitch, the complex will
> now house a new retail titan named Sears Holdings Corp. with $55
> billion in revenue, 3,800 stores and an uncertain future.
>
> The merger will create the nation's third-biggest retailer behind
> Wal-Mart Stores Inc. and Home Depot Inc. and bring together Sears' top
> brands Craftsman and Kenmore with Kmart's successful Martha Stewart
> (news - web sites) and Joe Boxer product lines. It also furthers Sears'
> strategy of moving away from shopping malls to the more profitable
> off-mall sites that Kmart stores typically occupy.
>
> But since each firm has struggled on its own, it remains to be seen
> whether the combined company can manage to keep up with thriving
> competitors.
>
> Lampert, whose investment firm controls Kmart and is Sears' largest
> individual shareholder, has orchestrated a financial turnaround at
> Troy, Mich.-based Kmart since it emerged from bankruptcy in 2003. The
> discounter turned a $1.1 billion profit last year, although it was
> largely the result of selling off real estate as sales continued to
> decline.
>
> He and Sears chairman and chief executive Alan Lacy, who will be CEO
> and vice chairman under Lampert at Sears Holdings, say the merger
> should save $500 million over the next three years. That means
> announcements of widespread store closings and staff cuts may be
> imminent.
>
> After boosting profits at Kmart, Lampert faces a similar challenge at
> Sears, where sales have slipped lower for four consecutive years and
> the $1.9 billion acquisition of Lands' End three years ago hasn't
> worked out. He has already signaled a change in direction last month
> with the announcement that dozens of earlier-acquired Kmart stores
> would be converted to a new mid-sized store format called Sears
> Essentials.
>
> Analysts are skeptical about prospects for a retail turnaround.
>
> "We think Eddie has the Midas touch, and in the short term I expect him
> to cut costs out of the business and extract value from some of Sears'
> non-strategic assets," said retail analyst Kim Picciola of
> Chicago-based Morningstar Inc. "But over the long term, we just don't
> see this combined retailer effectively competing against the Wal-Marts
> and Targets of the world."
>
> Retail consultant Howard Davidowitz expects Lampert to take the same
> approach at Sears to generate cash that he did at Kmart: sell assets,
> cut costs, reduce inventory and raise prices.
>
> "He recognized Kmart was a cadaver and he monetized it," Davidowitz
> said.
>
> "For the short term, it's very exciting. But for the long term, watch
> out," he said of the strategy, forecasting a "bleak outlook" for Sears
> unless the move away from malls is successful.
>
> Independent retail analyst Richard Hastings thinks that by maintaining
> Sears' strength in appliances and adding Kmart's Martha Stewart tag,
> the new company can prosper.
>
> "It's about profitability, it's not about sales," he said. "It may get
> smaller, but ... it's going to be more profitable, more stable, with a
> better strategy. And it'll be more competitive with Wal-Mart and
> Target."
>
Don;t blame K-mart. They only took advantage of the great laws of this
country. And brought to you by those people who know everything. And
before anyone starts to point fingers at democrats or republicans ,
remember they both had time to change the laws. Guess this did some
what, harder now I hear for people to file . How about co's.
And the ultimate insult is I thought oh well I can still use the stock
certificate out in the outhouse. Trouble with that they are in street
name. Damm what will I use now?
Just be careful don't buy any Kmart stock, or some day you'll have to eat it
like a lot of people did before they previously filed chapter 11! I'll bet
money that they have to again in a year or 2.
"Doug Miller" <[email protected]> wrote in message
news:[email protected]...
> In article <[email protected]>, "Ryan"
<[email protected]> wrote:
> [snip]
> >You have to strip these buidings [K-Marts] and totally redo them to make
them
> >someplace a customer wants to shop.
>
> Isn't that the truth. I remember reading a few years ago that Wal-Mart's
> market research showed that more than half of the people shopping at
Wal-Mart
> had a K-Mart store closer to home but went to Wal-Mart anyway.
>
> --
> Regards,
> Doug Miller (alphageek at milmac dot com)
>
> Nobody ever left footprints in the sands of time by sitting on his butt.
> And who wants to leave buttprints in the sands of time?
In article <[email protected]>,
Another Phil <NoSpamming@one two three four five.com> wrote:
<...snipped...>
>
>So my suggestion: Craftsman be pulled out of Sears and Kmart. Set up as a
>separate entity. Then have Snap-On tools purchase the Craftsman business.
>Or better yet, save the Craftsman power tool line by a buy out by a Japanese
>power tool company. In short, any option, that separates the Craftsman
>brand-name from the Clothing, houseware, and toys that a company like the
>new Sears Holding Company will produce.
<...snipped...>
>
>Phil
>
Interesting. Did you know that recently certain Craftsman products were
already being sold by other sources besides Sears? I know MSC sometmes
sells Craftsman products on sale, and I've seen them advertised in
local newspaper for other retailers, though I can't remember who at
the moment.
--
Larry Wasserman Baltimore, Maryland
[email protected]
Boy oh boy, am I going to get flamed on this opinion. Wait a moment while I
get out the leather breeches.....
The problem with any super major corporation is that the public interacts
with the worker bees, who in turn have team leaders, supervisors, managers,
and so on up the management ladder. Any employee who has any potential, is
promoted. Thus the worker bees report to the new (read young), the
inexperienced, or the incompetent. All others have been promoted so that
the good managers of people, the supervisors / managers with innate
leadership skills have other managers reporting to them not worker bees. An
isolation, and communications, problem can develop between the worker bees
and the managers who can make a decision. In frustration, the worker bees
have high turn over, which causes hiring and employee selection errors,
which causes... Low pay, and other management / employee problems also have
an effect on what the customer sees. The larger the corporation, the worse
the problem.
At both Sears, and K-mart, I have been frustrated, and on more than one
occasion very angry, at the worker bees who have a "I just work here," or
worse, attitude. Wal-Mart will at some point will find they have a similar
problem. I suspect at some specific Wal-Mart stores, this is already a
problem. Any one remember when going into a BORG and having a licensed
electrician on duty in the Electrical Dept. Again YMMV at each store.
So what does this have to do with Woodworking? Well just this: Sears tools
and hardware will suffer even more under the new Sears-Kmart merger than it
has over the last few years. Anyone who purchased tools from Sears before
1980 (actually prior to Sears Tower in downtown Chicago) knows the high
point of Craftsman branded tools was sometime prior to 1977.
So my suggestion: Craftsman be pulled out of Sears and Kmart. Set up as a
separate entity. Then have Snap-On tools purchase the Craftsman business.
Or better yet, save the Craftsman power tool line by a buy out by a Japanese
power tool company. In short, any option, that separates the Craftsman
brand-name from the Clothing, houseware, and toys that a company like the
new Sears Holding Company will produce.
What the hell, I bet even if the BORG were to purchase the Craftsman and the
Kenmore appliance line, it might in the long run save the brands product
line. At least for a few years until same problem of promotion of the
leadership skilled people continues.
Phil
"Lawrence Wasserman" <[email protected]> wrote in message
news:[email protected]...
> In article <[email protected]>,
> Another Phil <NoSpamming@one two three four five.com> wrote:
> <...snipped...>
> >
> >So my suggestion: Craftsman be pulled out of Sears and Kmart. Set up as
a
> >separate entity. Then have Snap-On tools purchase the Craftsman
business.
> >Or better yet, save the Craftsman power tool line by a buy out by a
Japanese
> >power tool company. In short, any option, that separates the Craftsman
> >brand-name from the Clothing, houseware, and toys that a company like the
> >new Sears Holding Company will produce.
> <...snipped...>
> >
> >Phil
> >
>
> Interesting. Did you know that recently certain Craftsman products were
> already being sold by other sources besides Sears? I know MSC sometmes
> sells Craftsman products on sale, and I've seen them advertised in
> local newspaper for other retailers, though I can't remember who at
> the moment.
>
>
> --
>
> Larry Wasserman Baltimore, Maryland
> [email protected]
>
Hax Planks wrote:
> Another Phil says...
>
>> Boy oh boy, am I going to get flamed on this opinion. Wait a moment
>> while I get out the leather breeches.....
>>
>> The problem with any super major corporation is that the public interacts
>> with the worker bees, who in turn have team leaders, supervisors,
>> managers, and so on up the management ladder.
>
> The problem with Sears and K-mart is that they are old and Wal-mart and
> the BORG are new. If you are new, you build big new stores in the best
> and most affluent locations in exurbia near the busiest highways. If
> you are old, then your locations are smaller, less clean, less modern
> and quite possibly in declining neighborhoods and/or buried deep in city
> traffic.
Uh, around here the Sears stores are all within a couple of blocks of Borgs,
and only one is more than 5 years or so older than the Borgs. And they're
_all_ in major malls.
> If K-mart/Sears is to make a serious go, then they need to
> build new, build big and compete on price. If they can't or won't do
> that, then they should liquidate now and stop flogging a dead horse.
--
--John
to email, dial "usenet" and validate
(was jclarke at eye bee em dot net)
In article <[email protected]>,
"Another Phil" <NoSpamming@one two three four five.com> wrote:
You guys write letters llike you haven't been inside a Sears store in
the past ten years. Where do you get all that misinformation. Why do
you think that a decline of Craftsman quality is the death of Sears.
When I visit a Sears tool section I find tools there from many different
manufacturers. Do you want Porter Cable? Do you want DeWalt? These
are all for sale at Sears. I find the service at Sears is far better
than the local big box. In visiting Home Depot the price may be
slightly lower but the service is non-extistant.
The Craftsman name means many things. Sears doesn't build any tools
themselves. They put the Craftsman name on a tool that they purchase
from somebody else. Often times it is a really cheap tool that we would
not get pleasure from. Craftsman does carry a line with a Professional
name that is a high qualilty tool.
I frequently shop at Sears but I rarely buy the Craftsman tools.
Dick
I predict in 2 to 3 years kmart and sears will fold.
<[email protected]> wrote in message
news:[email protected]...
>
> Another Phil wrote:
> > Paul:
> >
> > I fully agree with your comments as how the brands are today.
> >
> > Completely agree.
> >
> > But suppose, just suppose, what would happen under a different
> > corporate entity? Could the brands, and their customer service
> > be revived. Could Sears Craftsman and Kenmore service parts
> > web page be better? Could a revived corporate entity actually
> > co-ordinate Web and Show-room sales so the same warehouse
> > and installation people installs the Kenmore major appliances
> > without the current bickering and backstabbing?
> >
> > My point was, and is, Craftsman and Kenmore Service Parts could
> > be doomed by this merger. Consider your own personal experiences
> > with "customer service" with Kmart and extrapolate that to Craftsman
> > and Kenmore "customer service" in the future.
> >
> > Phil
>
>
> Phil,
>
> You raise a good point, but, the way I see it, a different corporate
> entity may not be the answer. Sears has changed their "corporate
> standards" a few times that I can think of... For one, have you noticed
> that there are Craftsman Tools (with lifetime warranties) AND they are
> now fronting Sears brand handtools with NO warranty. Cheaper price and
> cheaper tool. Also, as I said before, the online sales and retail store
> sales are separate entities now. They used to be more than happy to
> order items that the customer couldn't find at the retail stores, now,
> they couldn't care less. The new corporate entity idea will work, but,
> ONLY if the new corporate entity creates and enforces new policies that
> truly demonstrate that they are there to help the customer. That means
> customer service of ordering out-of-stock items (like a catalog store),
> quickly and efficiently getting to customers that own Kenmore
> appliances that need repair, QUICKLY (not more than a month) getting
> the necessary tools and parts to repair those appliances, AND MOST OF
> ALL, selling Craftsman, Kenmore, or whatever brands of goods that are
> really good enough for people to want to own. Why else did they have
> the corporate idea a few years back to start selling so many other
> brands?
>
> I think they were starting to realize that their motto had changed
> from: "Sears where America shops" to "Sears where nobody shops"
>
> Paul
>
What is "BORG"? I know the Star Trek BORG, but not what you are
referring to here.
Another Phil wrote:
> Boy oh boy, am I going to get flamed on this opinion. Wait a moment
> while I
> get out the leather breeches.....
>
> The problem with any super major corporation is that the public interacts
> with the worker bees, who in turn have team leaders, supervisors, managers,
> and so on up the management ladder. Any employee who has any potential, is
> promoted. Thus the worker bees report to the new (read young), the
> inexperienced, or the incompetent. All others have been promoted so that
> the good managers of people, the supervisors / managers with innate
> leadership skills have other managers reporting to them not worker
> bees. An
> isolation, and communications, problem can develop between the worker bees
> and the managers who can make a decision. In frustration, the worker bees
> have high turn over, which causes hiring and employee selection errors,
> which causes... Low pay, and other management / employee problems also
> have
> an effect on what the customer sees. The larger the corporation, the worse
> the problem.
>
> At both Sears, and K-mart, I have been frustrated, and on more than one
> occasion very angry, at the worker bees who have a "I just work here," or
> worse, attitude. Wal-Mart will at some point will find they have a similar
> problem. I suspect at some specific Wal-Mart stores, this is already a
> problem. Any one remember when going into a BORG and having a licensed
> electrician on duty in the Electrical Dept. Again YMMV at each store.
>
> So what does this have to do with Woodworking? Well just this: Sears
> tools
> and hardware will suffer even more under the new Sears-Kmart merger than it
> has over the last few years. Anyone who purchased tools from Sears before
> 1980 (actually prior to Sears Tower in downtown Chicago) knows the high
> point of Craftsman branded tools was sometime prior to 1977.
>
> So my suggestion: Craftsman be pulled out of Sears and Kmart. Set up as a
> separate entity. Then have Snap-On tools purchase the Craftsman business.
> Or better yet, save the Craftsman power tool line by a buy out by a
> Japanese
> power tool company. In short, any option, that separates the Craftsman
> brand-name from the Clothing, houseware, and toys that a company like the
> new Sears Holding Company will produce.
>
> What the hell, I bet even if the BORG were to purchase the Craftsman and
> the
> Kenmore appliance line, it might in the long run save the brands product
> line. At least for a few years until same problem of promotion of the
> leadership skilled people continues.
>
> Phil
>
"Too_Many_Tools" <[email protected]> wrote in message
news:[email protected]...
> http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050324/ap_on_bi_ge/sears_kmart_merger_1
>
>So, is it now called Kears or S-mart???
>> At both Sears, and K-mart, I have been frustrated, and on more than one
>> occasion very angry, at the worker bees who have a "I just work here," or
>> worse, attitude. Wal-Mart will at some point will find they have a
>> similar
>> problem. I suspect at some specific Wal-Mart stores, this is already a
>> problem. Any one remember when going into a BORG and having a licensed
>> electrician on duty in the Electrical Dept. Again YMMV at each store.
In 2002, I retired after 15 years selling appliances for Sears. Being a
commission only paying job, I did see a lot of associates with only their
own interests in mind when working with customers. In 2004, I took a part
time job at a Sears Appliance and Hardware Store in N. Illinois. I have to
tell you that I've never worked with people more dedicated to pleasing the
customer. From the manager on down, customer service is fantastic. I've
observed many customers who seem to stop in regularly just to visit with the
associates, many times with no purchase in mind. One customer stops in at
least once a week to see me and talk. I've never sold him anything, either.
One thing that makes all this possible is the fact that we're paid by the
hour and don't have to worry about losing a sale and money if we spend too
much time with one particular person. And maybe another factor is most of
us are older, semi-retired and just all around nice people to be around.
Tom.