Sears CEO: 'We don't need more customers'

[hpracing007]

What a lightweight that CEO is

[ohai]

True. As financial market crises show us, a lot of downside risk comes from correlation skew: prices for related assets become positively correlated as they decrease. So, if sales at Sears and other retailers decrease, so will the value of retail real estate, which is dependent on those sales. Some real estate assets, like Macy’s in New York City, are prime properties and have resilient values. However, most department stores are located in the middle of suburban areas and are suitable for only retail purposes.

[Isaiah_53_5]

@numi

@birdman12345

Well, I suppose hes right. They dont need more customers. They dont NEED any customers. They dont NEED to exist at all.

truth

Neurolinguistic Truth

[GorillaNerd]

great metaphor. haha. thoguh i imagine selling assets is not as painful. but yea what they really need to do is close underperforming stores to sell the real estate in order to pay off their debts. they have some locations that are prime with heavy traffic, those they should keep.

@ohai

I don’t really know that much about the retail sector, but I suspect that brick and mortar chains like Sears can exist for a very long time past the point of relevancy because they all have large holdings in real assets, i.e. land and buildings. So, unlike let’s say technology companies, they can slowly liquidate their assets to remain in existence, much like a starving person slowly consuming parts of his own body to delay inevitable death.

[Isaiah_53_5]

@Neryblop

great metaphor. haha. thoguh i imagine selling assets is not as painful. but yea what they really need to do is close underperforming stores to sell the real estate in order to pay off their debts. they have some locations that are prime with heavy traffic, those they should keep.

@ohai

I don’t really know that much about the retail sector, but I suspect that brick and mortar chains like Sears can exist for a very long time past the point of relevancy because they all have large holdings in real assets, i.e. land and buildings. So, unlike let’s say technology companies, they can slowly liquidate their assets to remain in existence, much like a starving person slowly consuming parts of his own body to delay inevitable death.

Sounds like K-Mart