Sears REIT does nothing to build true value
Tom Dougherty, CEO – Stealing Share
1 April 2015
Sears REIT is a sign of desperation
Sears has announced that it is forming a Real Estate Investment Trust (REIT) in a move that will generate about $2.5 billion for Sears.
Sears will then lease its once-owned properties. This comes after Sears divested its Hometown & Outlet stores as well as its Lands End brand. Sears has even leased parts of buildings in which it currently resides. (We have a Whole Foods, an entire grocery store, here locally that has leased part of a Sears location.)
“The enviable demise of Sears will come as a result of its victim mentality if history is any indication.”
Much like the 2004 $11 billion deal for Kmart and the nearly $2 billion deal for Lands End, the Sears REIT once again does nothing to build long term value for Sears. Sears will fail because its horizon is not long enough. It has not invested in its brand for long term.
To see proof of this, I ask you this question: “What is Sears?” At best, your answer will be as ambiguous as “I don’t know.” When asking yourself the same question about Kmart, the answer is likely a bit more damaging. Your likely response is simply “cheap,” which is a failure on Kmart’s part because it will never outdo Walmart in “cheap.” Walmart stores are also everywhere so Kmart will also lose the convenience battle as well.
Who is to blame?
For Sears, it’s easy to blame the end of the golden age of the department store and mall, thinking the changing landscape and customer preferences is beyond its control. The enviable demise of Sears will come as a result of its victim mentality if history is any indication. Sears’ seeming unwillingness to change at its core to be something better and different is what spells its doom.
The Sears REIT will keep it afloat in the hopes that customer expectations will change, but will do little to align the once great brand into something meaningful in the long term.
Go Boldly Tom Dougherty, CEO - Stealing Share 21 September 2017 Go Boldly American Biopharmaceutical Companies Go Boldly, the marketing arm of the American Biopharmaceutical Companies, has launched a new TV campaign. It is perfect branding? It just might be. The key...
The Equifax hack Tom Dougherty, CEO - Stealing Share 20 September 2017 Equifax waits six weeks, blows its brand promise Data breeches suck. No one appreciates it when hackers break into a company and retrieve your personal information. Then you change passwords,...
Rolling Stone magazine Tom Dougherty, CEO - Stealing Share 19 September 2017 Rolling Stone magazine seeking change with sale Last week, my oldest son wrote a guest blog. His post, something special to his heart, highlights the music review site, Pitchfork. I...