Wednesday, 22 March 2017 13:52

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

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.Sears report1

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 and, alas this brings us back to the management issues, doesn't it?

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