Former Sears executive Steven Dennis says now is the time for the struggling retailer to liquidate.
In a commentary on his blog last week, Dennis, a former vice president at Sears who exited the company in 2003 after about a decade, listed five reasons why the company should "stop the charade and embrace the inevitable." His points were:
- It doesn't offer a value proposition.
- It's lost its relevance in nearly every major category, while its competitors have gained ground.
- After years of underinvesting in its stores, it has a lot of catching up to do, and it now would be unable to fund the necessary upgrades.
- CEO Eddie Lampert "doesn't know what he is doing," and is investing in the wrong areas, such as the Shop Your Way loyalty program.
- Its valuable assets, including proprietary brands Kenmore and Craftsman and its real estate portfolio, are becoming "less valuable every day."
Dennis joined The Neiman Marcus Group following his exit from Sears and now serves as an advisor at SageBerry Consulting. Dennis said none of his clients compete broadly with Sears. Sears, as a rule, does not comment on the circumstances behind the departure of former employees.