freddiemertz

Lampert's Move Is All About Brands

Shockingly ill-informed and naive commentary yet again from Mr. Sullivan. For starters, these are divisions within a company, not completely independent units working under a holding company like Berkshire Hathaway's divisions. Second, TGT has not been begging SHLD to sell them stores for three years. They (and other potential buyers like HD & LOW) have been building stores in the same trade areas as the desirable SHLD locations because SHLD has been unwilling/unreasonable in negotiations. So although many of those locations are great, the opportunity has passed as potential buyers have built out nearby locations. And why exactly is a REIT a good thing? Please give me one example (other than Alexanders which held a single location in the heart of midtown Manhattan that is now the Bloomberg tower) of a retailer becoming a REIT and creating value. RVI, which many had been valuing on real estate value just had TO PAY someone to take their Value City locations off their hands. Third, the day you can buy Craftsman, Kenmore and Diehard in non-SHLD retail outlets is the day that SHLD packs it in and stops being a retailer, because without those brands there is simply no reason to shop at Sears. Fourthly, Covington, Structure and Canyon River Blues (Canyon River Blues?? -- you can not be serious) are worthless brands that Wal-Mart or any other retailer would not stock in their stores if they were paid to do it. And Joe Boxer is not owned by SHLD -- it is owned by ICON -- do your research. SHLD bought the failed Structure brand from LTD for less than $10mm.