Dying Retailers
here on MattChat, my May 8 blog entry centered around the sad state of retail today. I specifically mentioned the troubles of 3 of the big players -- Sears, JCP and K-Fart -- and how they might not make it past this holiday season if something doesn't change.
These 3 were big.... HUGE.... 10 years ago. But, for various reasons, they have failed to keep pace with the economics and dynamics of retailing and are virtually has-beens now.
Speaking directly about our local stores here in the Decatur area....
Sears has shut-off nearly half of their square footage, cut down on inventory & selection, and crammed what they do have together into a very non-shopper-friendly floorplan. Years ago, it was big news here when Sears moved out of downtown Decatur into a brand-new expansion out at the Hickory Point Mall. Now, they are dying on the vine.
Our JCPenney is out-of-date, understocked and understaffed. Carpet is stained. Shelves are only 50-75% full. Large sections of the floor are sparsely covered with racked clothing. The catalog desk has even closed (I can't begin to count the number of times we ordered stuff out of the JCP catalogs for store pick-up). They are in trouble.
And K-Mart. Well, K-Fart is just K-Fart. Dirty. unorganized. understaffed. irrelevant. Their big parking lot on Pershing rarely has more than 40-50 cars... except during the holiday season, when they are scrambling for crumbs off the holiday shoppers' table. What a mess!
What brought up this whole discussion was an article I read today about Sears. The title really caught my attention:
18 Depressing Photos That Show Why Nobody Wants To Shop At Sears
I'll share a couple shots with you:
Very similar shots to what we've seen at our local Sears. It doesn't even look like they are trying.
(read the full article and see all the photos at: http://www.businessinsider.com/photos-that-show-why-sears-is-vanishing-2013-10)
A recent quote about JCPenney:
"The holiday quarter is critical for any retailer, and they'll need to show they're on the road to making some serious improvements because their future is dependent on it." (analyst Paul Swinand)
A recent quote about K-Fart:
"While Wal-Mart isn't known for beautiful stores, they are at least clean and well stocked. This hasn't always been the case at Kmart. In fact, while Wal-Mart was expanding, Kmart's stores were generally falling into disrepair and looking more and more outdated. That's a reputation that Kmart hasn't been able to shake." (Reuben Brewer, Motley Fool)
and a recent quote about Sears:
"The main point of concern for Sears is the continuous decline in same-store sales. Store traffic has become so weak that the recent cut in stores may not be enough. This, coupled with the huge debt load, paints a grim picture." (CMI Research, Seeking Alpha)
not good news for any of the 3, huh?
Remember this look? I sure do. This is very similar to how I remember the K-Mart in Paris, Illinois. All sorts of trips to that place when I was a kid.
The Paris K-Mart closed years ago.
If something doesn't change soon, all the remaining K-Marts will be gone too.
Along with Sears.
Along with Penney's.
Out for now.....
Matt
