Greedsters in the corporate world, would rather close stores, than to lower their prices! I get a chuckle everytime I see a store boarded up...whether it's a burger joint or some other kind of business.
In 2011, during the Age of Greed...corporate greedsters are not happy in making millions of dollars for their greedy stock-holders. There interested in making billions in a quarter!
Albuquerque, New Mexico is a city of about 500,000 population, and we had three indoor shopping malls, with about over 200 stores each...Coranado; Cottonwood Center; and Winrock Center. Winrock has been closed about five years, and what the investors are going to do with the property, is anybody's guess. In my view, indoor shopping malls, have always been the epicenter of greed. With the coming of the Internet, there will sure to be other casualties in the retail industry. (my heart bleeds for these greedsters). Today (2011), everybody's on the greed wagon...
The following article was written by Amorel Kenna of the Bloomsberg News, and the piece was published in the Albuquerque Journal on December 28, 2011. The headline reads;
"Sears, Kmart To Close Up To 120 Stores"
The sub-title reads;
"Holiday Sales Slide Spurred Decision" and the articles reads;
"Sears Holdings Corporation...the retailer controlled by hedgefund manager Edward Lampert, wil close as many as 120 Kmart and Sears full-line stores after sales of consumer electronics declined in the holiday shopping period.
The closures will generate $140 million to $170 million of chas from sales of inventory and the leasing or sales of the locations, the Hoffman Estates, Ill. based company said in a statement.
The company has yet to determine which stores will close but said it will post on their website, when the final list is compiled. The company would not discuse how many, if any, jobs would be cut.
Sears has more than 4,000 stores in the United States and Canada, including 15 Kmart locations and about six full-line stores in New Mexico. (I live in New Mexico) The company will record total non-cash charges of as much as $2.4 billion in the foruth quarter related to a valuation allowance and goodwill impairment.
Lampert, who along with his hedge fund owns 60 percent of Sears, has presided over 18 consectutive quarters of declining sales. Before Tuesday's announcment, Sears had closed 171 of its large U.S. stores since merging with Kmart in 2005. To revive growth, Lampert has been leasing space to other retailers, accelerating franchising and turning to smaller store formats.
Total same-store sales fell, 5.2 percent in eight weeks ended Dec. 25, according to the statement. Comparable sales at Sears namesake locations dropped 5 percent, driven by declines in consumer electronics and home appliance categories. Sales at Kmart fell 4.4 percent. As a result, earnings before interest, depiciation and amortization in the fourth quarter will be less than half of last year's $933 million.
The company also expects to reduce 2012 peak domestic inventory by $300 million according to the statement. Sears is scheduled to report fourth-quarter earnings in February, 2012.
END OF ARTICLE;
My heart bleeds for these greedsters!
Albuquerque is no different that any other medium-sized city. We have lost the likes of General Electric; Motorola; Digital, Martin-Marietta; Trend; Seimens; AOL; Penny Call Center and many others. At the height of its peak, Intel on the west side, had about 7,500 employees...and in 2011...the company is down to less than 2,000 employees. I don't expect to see Intel in town much longer...the party's over...
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Copyright; Jerry Aragon; 2011; The Humor Doctor;