Seeking Alpha

Sears continues slicing and dicing of real estate

  • A lease agreement signed by Sears (SHLD) at a Pennsylvania mall could be an indication of future strategy.
  • The department store will share space with Dick's Sporting Goods (DKS) by subleasing the second floor of the expansive space.
  • This slicing and dicing of existing space has been suggested in the past by retail watchers as a way to extract some value out of Sears' real estate without a full exit.
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Comments (9)
  • The_Hammer
    , contributor
    Comments (4530) | Send Message
     
    downsizing retail space and maxing real estate cashflows finally by putting profitable retailer in corp owned space bringing in desperately needed f-cashflow. Eddie should move "real" fast on this strategy. shld retail will be dead next downturn if cashflows do not improve/ stabilize. a positive for once.
    16 Jan 2014, 08:32 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1760) | Send Message
     
    The thing is, he can put Sears retail into bankruptcy and come out with KCD/Sears Re, while creditors get shafted and get claim to the retail operations for Sears/Kmart.
    16 Jan 2014, 08:47 AM Reply Like
  • The_Hammer
    , contributor
    Comments (4530) | Send Message
     
    yes but he does leave some re value on the table. only like 100 props and some leases included in sears re. best moving fast to split retail space with a "viable" rent paying retailer. just maybe he could move this to an internet model. I said 'Just maybe" with same day delivery.
    16 Jan 2014, 09:04 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1760) | Send Message
     
    They have tried same day delivery since 2006 via MyGofer.com.

     

    It was a disaster.
    16 Jan 2014, 09:37 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (7492) | Send Message
     
    Lots of stuff under the service... interesting to see this announcement.
    16 Jan 2014, 09:40 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4868) | Send Message
     
    Much more Stone....much more.
    16 Jan 2014, 10:07 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (10032) | Send Message
     
    If only Eddie could stop the cash bleed he'd have something here.

     

    What good are asset sales when you are losing so much cash?
    16 Jan 2014, 04:22 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1760) | Send Message
     
    He needs A LOT more of these subleases to generate a meaningful profit...
    16 Jan 2014, 04:23 PM Reply Like
  • krudi
    , contributor
    Comments (11) | Send Message
     
    Could Eddie pay a realastate dividend? That would solve so many problems at once.
    16 Jan 2014, 05:36 PM Reply Like
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