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Current DateTime: 11:26:11 08 Nov 2009
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Current DateTime: 11:26:11 08 Nov 2009
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It's a make-it or break it time for retailers. The holiday selling season is always a critical time for retailers, but this year this may be even more true. With several retailers already falling victim to a drop in consumer spending, and filing for bankruptcy, retailers will be navigating through some tricky waters. Consumers are strapped for cash due to high energy and food prices, and unemployment is rising. The recent credit crunch has made it more challenging for retailers and consumers to borrow.

This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
 
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May.05
1:06 PM ET
Monday, 5 May 2008
Sears Chairman Lampert Getting The Warren Buffett Treatment?

Sears

It is fitting that Sears' annual shareholders' meeting is being held around the same time as the Berkshire Hathaway gathering.

Eddie Lampert, Chairman of Sears [SHLD  Loading...      ()   ] not only says that Warren Buffett inspired his investing sensibilities. Lampert is also compared to the "Oracle of Omaha."

But these days Lampert has been taking heat for Sears' 47% decline in share price this year and for Sears' continued sales declines.

That criticism is quiet though at this meeting today. Perhaps because Lampert so rarely speaks to analysts and never speaks to the press, many of the vocal critics have skipped out on this shareholder meeting.

Activist investor Bill Ackman is here but his questions though pointed, were relatively muted. Ackman explained his hedge fund's (Pershing  Square Capital) motivation in buying 5M shares of Sears as due to Eddie Lampert's involvement.

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The awe with which investors address Lampert reflects a similar respect/fear that maybe he's right--maybe he really does see something that Wall Street's measuing tools (same store sales, etc.) don't actually pickup on.

So far here are some highlights:

- Lampert doesn't see a turnaround so far in consumer economy and doesn't foresee one this year.

- He hasn't seen a benefit as yet from interest rate cuts but does think that there will be a benefit.

- He thinks the market is flooded with too many stores being opened by competitors.

- Brands seem to be the new bet for Sears--are brands/merchandising replacing Lampert's emphasis on the underlying real estate play?

- There is a fundamental shift in how consumers shop. Part of that is due to increasingly specialized brick and mortar as well as online retailers.

I'll be posting more notes from the meeting later today.

Questions? Comments?

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