Seeking Alpha

Department store stocks a bit frisky

  • Some out-of-favor department store stocks are showing tidy gains today, led by J.C. Penney (JCP +8.3%) and Sears Holdings (SHLD +3.3%).
  • Though there have been a few positive signs in the retail sector that momentum has picked up following a sluggish Q1, today's action is tied to some momentum buying following an extended beating on the sector from investors.
  • Dillard's (DDS +0.7%), Macy's (M +1.1%), and Bon-Ton Stores (BONT +1.9%) are also out-performing mildly on the day.
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Comments (7)
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    I laughed when they said Sears and JC Penney would have filed for bankruptcy by now.

     

    I'm still laughing.

     

    Just look at Radio Shack if you want to see just how long a retailer can hang on decades after their prime.

     

    There is a TON of value in real estate and leases.
    21 Apr 2014, 02:55 PM Reply Like
  • bebopr
    , contributor
    Comments (497) | Send Message
     
    Lover....do you see any longer term value in the retail side of Penney due to growth in sales/profit or is it all over but the shouting-out to hurry and take advantage of the real estate and leases?
    21 Apr 2014, 03:59 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    I think JCP should do a JV with Amazon and look for other out-of-the-box initiatives to increase its online authority.

     

    I see the successful old line retailers transitioning to a "sell online, pick-up locally" model.

     

    A membership model (like Costco) would help drive relationships as well.

     

    Just because the Web has taken over doesn't mean Americans no longer want a fulfilling shopping experience.

     

    JCP:

     

    1. Listen to the customer

     

    2. Provide a good product at a decent price

     

    3. ALWAYS, ALWAYS, ALWAYS put customer service first, second and last

     

    4. TRAIN and PAY WELL your full-time staff

     

    =================
    If they do these things then I wouldn't be surprised to see a $30 stock price by 2017.
    21 Apr 2014, 04:25 PM Reply Like
  • SA_Member_11523241
    , contributor
    Comments (83) | Send Message
     
    DVL, interesting ideas. Agree it's neither web alone nor store alone that works best for customers, but the best configurations of both. It takes careful planning and time to formulate, test and run a new pricing program or JV. Does JCP have the capacity yet?
    21 Apr 2014, 07:26 PM Reply Like
  • rube123
    , contributor
    Comments (1741) | Send Message
     
    that ton of value became a couple pounds the day is was realized SHLD doesn't own the real estate under most of their run down buildings , and as every one has seen, leases are just expiring , and some stores closing with leases remaining , while owners wait for lease to expire before they redevelop

     

    don't lose hope , SHLD will walk thru those BK doors before long
    I think JCP might survive , they actually had a pretty good crowd , also Old Navy, while the Sears parking lot appeared to have only employee parking
    22 Apr 2014, 06:48 AM Reply Like
  • Fast Lane
    , contributor
    Comments (642) | Send Message
     
    DV,
    SHLD also came up in the merger/ JV discussion on other boards, these all play well if AMZN like the locations and lease agreements; not sure how far down the path AMZN is with securing it's own facilities, you?

     

    Agreed that Brick and Mortar is not dead; let's look at online (Amazon which has no support for $300), how much stuff gets used and sent back or not even purchased because items are not what the customer thought it was going to be. Electronics break, cloths don't fit or are the wrong color, shape, etc. There is also a level of trust that is misleading while purchasing on line, get burned once you might be done!
    Stores will always exist and once Mall's figure out the next destination activity to bring the shoppers and non shoppers together ie Movie theaters, restaurants, gambling, sports, music, whatever...people will go to Malls!

     

    How about those days where the weather sucks and you need to get out of the house or elements, fantasy that shopping will die, total fantasy!
    21 Apr 2014, 05:22 PM Reply Like
  • loudano
    , contributor
    Comments (554) | Send Message
     
    Does anyone remember this "computers and the internet will make paper obsolete"? Like MacChesney said to Ballantine in Gunga Din "Don't make me laugh"!
    21 Apr 2014, 07:20 PM Reply Like
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