The New York Times reports that when Sears Holdings announced its Q1 results yesterday, its loss was $402 million (compared to $279 million during the same period a year ago). Revenue was down 6.8 percent. And the company said it will close at least 80 Sears and Kmart stores this year, in addition to the more than 100 that were closed a year ago.
"Sears has been trying to transform its traditional retail business to a store that focuses on selling products to members, and the membership is growing," the Times writes. "Members of its Shop Your Way rewards program accounted for 74 percent of eligible sales at Sears and Kmart stores in the first quarter. But many analysts doubt the program’s worth, as it essentially gives discounts — and margin — away for nothing."
Sears already has spun off its Lands' End business, and reportedly is looking into selling off its Canada business.
"Sears has been trying to transform its traditional retail business to a store that focuses on selling products to members, and the membership is growing," the Times writes. "Members of its Shop Your Way rewards program accounted for 74 percent of eligible sales at Sears and Kmart stores in the first quarter. But many analysts doubt the program’s worth, as it essentially gives discounts — and margin — away for nothing."
Sears already has spun off its Lands' End business, and reportedly is looking into selling off its Canada business.
- KC's View:
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Gee, it was just a month ago that in his annual shareholder letter, Sears chairman/CEO Fast Eddie Lampert said that "2014 may well be a year in which Sears Holdings begins to clearly demonstrate the advantages" of its transformation to an integrated retail platform, and that "the entire retail industry is headed to where we already are."
The traditional retail industry better hope not. Because that sound you hear is this big, lumbering retail boat hitting an iceberg … and it isn't going well for the boat.
