marva66

Sears Is Holding Strong

This is a simple explanation and it is not detailed but a merchant is charged a lower rate to have credit services or a branded card with their logo when certain things are met. The more applicants it can pick up and the accounts are not in high default than the merchant gets the lower interest rate. If the application and acceptance rate is not adequate, than this can cause the merchant to pay a higher rate of interest for the credit. Default rates can affect the rate especially on a branded card. It is not a free ride. Big stores will rarely if ever restrict small charges under ten dollars but if you frequent a small business alot of times they will not accept charges under ten. it costs too much for the merchant to do those transactions. if you have had the pleasure of going into Sears or Kmart than you will experience the Sears credit card push which they require their associates to push. Some stores will take hours away from cashiers for not having quotas met. What they pay the banks has an affect on bottom line. With shrinking store traffic I am sure they are trying to prevent an increase in what they pay as they cannot get people to sign up for the sky interest rate they charge.

Sears Is Holding Strong

Worked for Sears Holding and know more about the games their playing. They do get hurt along with Citi when customers default on credit cards. They have damaged relationships with vendors, customers and employees. Both companys under the holding companies umbrella used to be strong companies. Lampert is not a retailer and has damaged alot of people's lives in the process of trying to run a business he has no clue about. Meanwhile he won't leave empty handed, but many low wage earners will leave with empty pockets. It's an example of how not to run a corporation. Climb on board the Titanic if you think differently and hope you can get on a lifeboat on its way down.

Sears Is Holding Strong

I do not believe Sears Holding numbers. I know many stores were down 20 to 30% for the month of December. They are seeking a 2 billion line of credit and how would it look to their future creditor if the real numbers where there. Be careful of their stock, there has been massive buybacks by Lampert and it looks like short selling has been going on. I wouldn't put my money into something that has the reputation of not just being a merchant which dropped the ball long ago but treats their associates like they are insignificant. Remember there were several stores closing in December and those same store sales could help prop up a false set of rises in same store sales. it also will be interseting to know there default rate on credit cards. I expect them to close more stores, cut more positions, squeeze their employees for their last drop of blood. But the guys on top will leave a smaller, uncompetitive company while they fill their pockets before they have sealed their fate. Strong is not how I would describe them.

Credit Markets Overstate Sears Bankruptcy Risk

The Kmart I used to work at is at a loss of over 1.5 million for this year alone. The average store is down near 20% for the year and that is not taking into account the declining years previous losses. From a view from inside, this company needs an intense audit because I think their numbers in many areas are worse than what reported. I also hate to see where this company has taken Sears. It is far from the same store my family used to frequent. Whether they go bankrupt or not they will not remain the size they are because it is unsustainable.

And as for layaway, many are returned to stock for insufficent payment or cancellation when the customer finds something somewhere else cheaper. The numbers were not good for December and stores in my area and even ones based in the companies back yard were slashing hours for employees left and right because of declining sales.

I also would not advise buying into this stock. Their leader , Lampert, is not a retailer. Their executives are short sighted and have been leaving in droves. The inability of middle management or store management to execute and perform is obvious from the numbers. Kmart is a discounter and should be performing better than some of the retailers. Sears used to to be the place to go for things for your home. The declining results say more about what is happening than any stock report. They are failing to do what they should be doing and that is performing as a merchant.