David Livingston

Has Target Got It All Wrong?

Target is too busy trying to figure out how to sell groceries outside of Minnesota. Actually they really don't know how to sell them in Minnesota but since they are a home town favortie, consumers give them a pass.

Target is wasting too much time and energy trying to be politically correct. I see no compelling reason to shop them. Their employees are a slight step up in class compared to Wal-Mart, their customers a huge step up in class, but prices are insulting. Just go to Wal-Mart, wade through the trailer park crowd, and get what you need.

Numbers Check on Sears Holdings - It's Cheap

Don't belive any numbers in the 10-k. The Sears and Kmart parking lots are dead. They don't even turn on the outside lights at night. They have the employees parking in front of the store now to give the impression that customers are in the store. Real estate? Those blighted buildings in B locations that will sit empty for years. My clients tell me the only thing worse than being located with a closed Kmart is being located with one still open. Some call it the Kmart jinx. Consumers have trained themselves to avoid Kmart and Sears locations. When another retailer takes over, consumers seem to still avoid the location, therefore making the real estate worthless.

Is Lampert Making the Grade at Sears Holdings?

What real estate value? Cap ex starved buildings in bad neighborhoods. Don't believe the hype on the real estate value. If those old clunker stores had any real estate value they would be sold instead of sitting there nearby vacant of inventory and customers. Employees have been ordered to park in front of the store to give the appearance that customers are there. Yet they can't afford to turn on the outside pylon light at night.