December 04, 2021

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Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

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My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

I gave the warning years ago. Basically, with low margins, negative growth, increasing competition from Internet sales and substantial debt, Sears was at the behest of interest rates. Once they ticked materially higher - Boom!

This is the most telling quip from my missive 6 years ago:

I discussed the effects of this on retail malls last week in The Greatest Risk To Retail Commercial Real Estate Is? Sovereign Debt! Macro Headwinds! Popping Bubbles! Busted Banks! No, It's The Internet! The kicker is the effect on Sears will be most exaggerated since it has real estate, fundamental, macro, industry induced and management issues to deal with as well as the paradigm shift towards internet shopping (which it should have been able to hedge with Sears.com and Kmart.com, alas this brings us back to the management issues, doesn't it?

Subscribers can access some of the legacy research here:  

  • SHLD ResearchReport 29May2009 
  • Retail Sector Shortlisting 042110 Pro Addendum 

Those who don't subscribe can view a preview below. Access to our services without direct interaction with our staff is now avalable for as little as $11 per month.

  1. Reggie Middleotn's Preliminary Opinions on Sear's Holdings
  2. Sears Q1 2009 Update
  3. Davidowitz On Overt Optimism In The Retail Space And Mall REITs, Stuff Which We Have Detailed Often In The Past
  4. In this difficult to trade market, you have to be more than just right
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