Sears, J.C. Penney, and Hedge Funds

Discussion in 'West Mall' started by Bevo Incognito, Apr 8, 2013.

  1. Bevo Incognito

    Bevo Incognito 5,000+ Posts

    Fascinating tale about what sometimes happens when hedge fund guys take over retail stores:


    The Link
     
  2. Roger

    Roger 1,000+ Posts

    it is an interesting article but to tie it to the hedge fund is a stretch in my opinion. In both cases you have retail stores that were dieing. In JCP's case they hired the guy that was responsible for the Apple stores to turn them around and the market looked at that very favorably however he has been a dud so far. In KMart's case the guy with the capital fund was overbearing when just leading the board and then finally took title of CEO. They did ok for awhile allowing themselves to buy Sears (which one could argue was just digging another hole) but overall the business models are outdated and they haven't attempted to do an update.

    Thus to me the interesting part of the article is that there are two very outdated stores, one attempting to modernize and failing, the other trying to squeeze life out of an old model and failing.

    I really don't get what a hedge fund being the majority owners of either really has to do with anything.
     
  3. texas_ex2000

    texas_ex2000 2,500+ Posts


     
  4. Larry T. Spider

    Larry T. Spider 1,000+ Posts

    Blaming the hedge fund guys is like blaming an ER doc when a patient comes it shot by a bazooka about to take his last breath.
     
  5. Clean

    Clean 5,000+ Posts

    Amazon is taking over the world. All but the best managed brick and mortar operations are going away. Stick a fork in Sears and Penneys. I don't think anybody could have saved them. Even mighty Walmart is threatened.

    Amazon is building a $166 million "fulfillment" center (ie. warehouse/distribution center) in the San Antonio area. I heard that they're launching a new service that will enable you to order online from Amazon and take delivery at your home the same day. And I think that they'll deliver it to you for free or very little.

    Walmart is considering countering Amazon's new service by enrolling its customers to deliver to other customers in their area. The bad news is that a Walmart shopper comes to your door.
     
  6. Roger

    Roger 1,000+ Posts


     

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