Eddie Lampert's Debacle at Sears

Tuesday, January 15, 2008 | 06:44 AM

Kmartmarriagelarge This morning, the papers are rife with stories about the debacle that is Sears (SHLD).

Once America's largest retailer, it now finds itself between a rock and a hard place -- down market from Target, but not as cheap as Wal-Mart.

Jesse Eisinger's piece in Portfolio -- The Marriage From Hell -- is a must read; he calls to task the man who has been prematurely called "the Next Warren Buffett."

Lampert's most recent investment's have been in Citigroup -- at significantly higher prices. (Not very Buffett-like) 

You can then round out the morning with the WSJ (Why Sears Must Engineer Its Own Makeover) and NYT (Sears Warns of Another Steep Drop in Profit).


Go figure: A hedge fund manager with no retail experience is having a hard time turning around these two faded giants on the cheap . . . Who ever could have seen that coming?


The Marriage From Hell
Why Eddie Lampert's failing Sears-Kmart experiment could mean trouble for dealmakers everywhere    http://www.portfolio.com/news-markets/national-news/portfolio/2008/01/14/Kmart-Sears-Merger

Why Sears Must Engineer Its Own Makeover
Retailer's Profit Warning Signals a Persisting Slide; Rivals Hurt Storied Brands
WSJ, January 15, 2008      

Sears Is No Berkshire Hathaway, Just A Troubled Retailer
Maxwell Murphy
Dow Jones, January 14, 2008: 03:00 PM

Sears Warns of Another Steep Drop in Profit
NYT, January 15, 2008 

Lampert: Architect of Sears-Kmart Deal Compared To Buffett
Greg Levine,
Forbes, 11.17.04, 5:49 PM ET

Tuesday, January 15, 2008 | 06:44 AM | Permalink | Comments (34) | TrackBack (1)
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Tracked on Jan 15, 2008 11:54:14 AM


Lampert should have sold the real estate when it would have commanded a high price. He should have hired a management team with extensive retail experience.
I do give him credit for cleaning up K-Mart, but the prices for staples there are high, and its cooler to shop at TGT. SEARS needs to get rid of their line of junky, smelly clothes. It's still a good place to buy tires.

Posted by: Deborah | Jan 15, 2008 7:28:00 AM

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