Landpimp

Value Investing in Sears: Avoid Current Perceptions & Look Forward

As both a Sears and Kmart landlord, I see a completely different picture. When dealing with them, they are extremely bureaucratic, cover your butt people who are unwilling to make a decision unless absolutely forced to. They also do not pay their contractors on time, often delaying payment by months based on flimsy excuses. However their rent checks arrive like clockwork.

While I have a tremendous amount of respect for Lampert, he has a huge task in front of him that so far he has been either unwilling or unable to tackle. In my opinion, the whole corporate philosophy of the company needs to change to become more nimble and responsive to changes in the retail environment. He will only be able to ride the cash flow off aging, unattractive, understocked stores for so long, before losing what remaining market share they have left.