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Kmart gets an early start on the holidays
The discount chain's Web site urges shoppers to get going now.
Attention Kmart shoppers: Start your Christmas shopping now.
As Tom Barlow noted on Bloggingstocks.com today, the discount chain, a subsidiary of Sears Holdings (SHLD), now is promoting Christmas shopping on its Web site.
Barlow thinks it may be the earliest start of Christmas promotions ever.
While there are stores that specialize in Christmas and holiday shopping 365 days a year, Barlow may be right.
Normally, you don't start seeing Christmas promotions in most regular stores until, say, Halloween. Purists will say even that's outrageous.
I've seen a few start in early October.
In any event, if you go to the Kmart site, you'll see a banner that reads "Take a Stroll Down Christmas Lane."
It's obviously a work in progress. Only a few of the links work right now.
And Barlow is clearly skeptical that it will generate much business. "Personally, I can't even predict who I'll still like well enough to give a gift to in six months. Stuff happens."
So, does this mean Kmart and Sears Holdings are in trouble?
Barlow wonders. Sears' stock, however, suggests the company may not be going anywhere yet.
Yes, the price collapsed between its April 2007 peak of $193 to $34 in March. But it has moved higher with the market, reaching $70.15 on June 15.
It closed today at $59.75.
Sears Holdings, however, has few fans among investors. Of the five sell-side analysts who cover the stock, four rate Sears a "strong sell." The other rates it a "moderate sell." It is really rare for analysts to be that negative on a stock.
Bloggers hate it. Michael Shulman of ChangeWave Shorts recently called the company "a dead man walking."
Then, to be sure readers understood what he felt about Sears, he added, "It's a truly awful company with terrible fundamentals."
The skeptics' concern may well be warranted.
Same-store sales have fallen for eight consecutive years.
Cash flow from operations isn't positive. Cash on the balance sheet has fallen from $4.44 billion to $1.2 billion at the end of its 2008-09 fiscal year.
It has to compete against Wal-Mart Stores (WMT), Target (TGT), Costco Wholesale (COST) and others.
(Admittedly, Wal-Mart has some struggles of its own, as Jon Markman noted in an MSN Money column today.)
And you have to remember that Chairman Eddie Lampert isn't a retailer. He's a financier, and financial management is how he looks at the company.
I wish more stores had layaway for those of us who are struglging along in these economic times. Especially for electronics it would be great, but K-mart's selection is not very good. When Circuit City was around they had 90 day layaway
but so much for that. I think that more stores should consider this now a days and it may help their sales.
The issue for me is not whether Kmart and Sears are doing Christmas in July specials. All stores do it, even Newegg has a Christmas in July sale going on right now and they're mail order and definately not suffering.
These ad "gimmicks" are as old as retail itself, and it is an attempt to grab the consumers attention to get them to get interested and come in to buy something. The problem is, no "gimmick" will work till everyone has the available cash to buy.
Kmart has been unattractive for some time due to their "bland" store design. If you look at Target, or even the latest changes to Wal-Mart stores, they are "attractive" and they are supplying the items people want and need. Kmart's prices used to be the lowest, but now they are higher than everyone else practically.
I had a Sears Grand in my city, and now it's closed. A failure of location and design. The Sears stores have always been a lure due to their design, but the selections have not been the best (save for Lawn and Garden and Appliances). Even the Toy Department no longer exists in a fashion I used to remember or enjoy. In the store I go to, it doesn't exist at all except at Christmas.
Sears and Kmart needs to change and maybe take a step back and examine what is wrong and correct it, before it's too late.
Actually, Sparky Joe, Wal*Mart no longer has layaway. K*Mart is one of the few retailers that still offers layaway. As a parent of two small nosy children, and limited space for storage, I find layaway to be very convenient. I can pick out items, put up half and then make cash payments instead of using credit cards and paying interest for the next year
No, Wal-Mart DOESN'T have lay-away any more......
http://www.washingtonpost.com/wp-dyn/content/article/2006/09/14/AR2006091401728.html
Haven't in a while.
Egads! The sparklers haven't even cooled down yet and K-Mart is pushing CHRISTMAS?? I'm sorry that any retailer has to do that kind of business to stay afloat.
As a store owner, I wouldn't do anything about decorating for Christmas until the day after Thanksgiving. I had people coming in the first of November and thanked me for not shoving, cramming and jamming "Christmas" down their collective throats and they felt more relaxed in making their purchases without the pressure. The Maine Mall was decorated and pumping Christmas carols before the November turkey dinner and though it was pretty, by the second week of December, who cared? The uniqueness of that time of year was already worn off.
IF Christmas (or whatever holiday you celebrate) is supposed to be so special and heartwarming for 4 weeks, why wear out its welcome but starting in July? No wonder everyone is so sick to death of it a week before and so out of temper.
Lay-away was a good thing to keep people on a budget who normally wouldn't be able to come up with a chunk of cash at once. Nothing wrong with using it -- it should come back in vogue with one change--do not allow credit cards to be used to make the payments. That way it's not the purchase you keep paying for after the fact...saving people money on the usuary rates the card companies charge.
First of all, there is no reason to be swearing sparky_joe...Second, I use layaway because my husband will go through and peak at everything. I usually put stuff on layaway and pay for most of it to begin with, but this way I don't have to worry about anybody ruining the surprise...
Why even make Christmas shopping seasonal anymore? It's gone from just after Halloween to -- yes, I've seen this in some so-called "respectable" chains -- after Labor Day. Just keep the decos up all year long...go for the greed -- no one cares anymore. Oh, don't forget there's this holiday just before Christmas called -- what is it -- Thanksgiving? Merchants, except for Hallmark, have totally forgotten it, which is sad, because more folks travel for Thanksgiving than any other holiday. I don't put my tree up until Thanksgiving weekend, and I don't even begin shopping until after Thanksgiving.
I do 95% of my holiday shopping online -- easier, because I can do it 24/7; cheaper in many cases; I don't have to fight the insanity called Christmas shopping; and I've never had one problem with any online vendor with regard to returns policies.
StockScouter data provided by Gradient Analytics, Inc.
Quotes supplied by Interactive Data.
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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