Why is Eddie Lampert hellbent on destroying Sears?

For those of you who don’t know, Eddie Lampert is an investor who took over Sears Holdings in the mid 2000s. Since that point, the asset has continued to decline. He provides an excellent example of the reality that MOST investors suck at running companies. When the CEO didn’t perform he made himself CEO and has proceeded to do even worse, which is little surprise since a billionaire from Greenwich isn’t exactly the kind of guy who should be running a company built by lower and middle class consumers.

For just one example of mismanagement, look at Home Servives. Everyone remembers that Sears has had a home services business (think siding) and you can still find it here. What you won’t see is SOLAR. So, where the hell is Sears on this? Do they not sell the units at all? Of course they do, they’re here. On the main site. And at the bottom of the description, ‘installation available’.

Which came a little too late… I already bought the unit I wanted, on credit, and hired someone local to install. Sears missed the sale, the debt service AND the installation. Not bad for a company that pretty much invented ALL FUCKING THREE.

The bottom line of retail, whether online or in person, is to make sure you:

1) Have what people want to buy
2) Have designed your site/store so that they can find it easily
3) Have a platform that can help the customer easily finance their purchase

Sears fails on all counts. Sears Home Services is, instead, apparently focused on trying to be a rehab contractor which is nice but unnecessary since the market already has plenty of those. Stupid, right? The focus should be Appliances, Siding, Roofing and Solar. That’s it, nothing more.

None of this should be much of a surprise since Lampert bought Sears primarily for it’s real estate assets, not to run it. My question is, why the FUCK not do both? Lampart’s blog states that Sears is transforming which is true… it’s changing from an also ran loser into a deadbeat.

This entry was posted in Business. Bookmark the permalink.

Comments are closed.