Wow! Sears and Kmart merge???
In an $11million deal...according to CNN Newsflash.
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Wow! Sears and Kmart merge???
Member since
Re: Wow! Sears and Kmart merge???
I heard about that...
IMO, they should have just bought out K-Mart and did away with the K-Mart name. K-Mart is failing....on the weekends, I always skip K-Mart bc they have crap (except for the Martha Stewart stuff) and I head to 1) Wal-Mart and then 2) Target.
IMO, they should have just bought out K-Mart and did away with the K-Mart name. K-Mart is failing....on the weekends, I always skip K-Mart bc they have crap (except for the Martha Stewart stuff) and I head to 1) Wal-Mart and then 2) Target.
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Re: Wow! Sears and Kmart merge???
kmart sucks
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Re: Wow! Sears and Kmart merge???
From MSNBC:
Kmart snaps up Sears for $11 billion
The two struggling chains agree to a surprise merger. The market wonders if the deal is about retail or real estate.
Kmart (KMRT, news, msgs) agreed to acquire Sears Roebuck (S, news, msgs) today in a deal the companies value at $11 billion, combining two of the most famous names in retailing.
Shares of Sears jumped $9.43, more than 20.86%, to $54.63 on the New York Stock Exchange, while Kmart gained $16.58, or 16.38%, to $117.80 on the Nasdaq in morning trading.
The combined company is expected to have $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores, meaning it will trail only Wal-Mart Stores (WMT, news, msgs) and Target (TGT, news, msgs). Both competitors' shares declined on the news; Wal-Mart shed 99 cents to $55.90, while Target was down 8 cents to $51.30.
Martha Stewart Living Omnimedia (MSO, news, msgs) rose $2.35, or 14 to, to $19.75 as investors bet the merger would lead to a broader merchandising agreement. Kmart sells Martha Stewart products in the United States, while Sears sells the company's products in its stores in Canada.
The new stock will certainly be attractive, NPD Group Chief Retail Analyst Marshal Cohen told CNBC's 'Morning Call.' Cohen called the combination a 'win-win situation.'
'You can now go into stores that you couldn't go into before to buy certain products,' Cohen said. 'You're going to be able to buy Craftsman tools at Kmart.'
Kmart chairman will hold new company's top spot
As part of the deal, Kmart shareholders will receive one share of Sears Holdings. Sears shareholders have a choice between $50 in cash, a 10.6% premium over Tuesday's close, or 0.5 share of Sears Holdings.
Kmart Chairman Edward Lampert will be chairman of the new company. Sears Chairman and CEO Alan Lacy will be vice chairman and CEO of Sears Holdings, with Kmart CEO Aylwin Lewis becoming president of the new company.
'The combination of Kmart and Sears is extremely compelling for our customers, associates and shareholders as it will create a powerful leader in the retail industry, with greatly expanded points of distribution, leading proprietary home and apparel brands and significant opportunities for improved scale and operating efficiencies,' Lampert said in a statement. 'The merger will enable us to manage the businesses of Sears and Kmart to produce a higher return than either company could achieve on its own.'Goodbye, Kmart
A look at the history of Kmart Holding Corp., which on Wednesday announced it would merge with Sears, Roebuck & Co.:
1899: S.S. Kresge Co. founded by Sebastian S. Kresge.
1912: The company incorporates in Delaware with 85 stores and sales of $10,325,000.
1918: S.S. Kresge Co. becomes publicly traded company, listed on the New York Stock Exchange.
1929: Canadian subsidiary S.S. Kresge Co. Ltd. is founded. By year end, 19 stores operating in Canada.
1962: Company opens first Kmart discount department store in a suburb of Detroit. Seventeen other Kmart stores open the same year.
1966: Founder Sebastian S. Kresge dies at age 99.
1966: Sales top $1 billion mark for the first time. Number of stores climbs to 915, including 162 Kmart stores.
1977: Name changed from S.S. Kresge Co. to Kmart Corp. to reflect that in 1976, sales at Kmart stores accounted for 94.5% of the company's domestic consolidated sales.
1981: The 2,000th Kmart store opens. At year end, there were 2,055 Kmart stores in the U.S., Canada and Puerto Rico.
1987: Kmart introduces Martha Stewart, entertainment and lifestyle spokeswoman and consultant.
1997: Kmart launches Martha Stewart Everyday line of bed and bath fashions, and complementary paint line.
2002: Kmart files for Chapter 11 bankruptcy protection. At the time, the company had 2,114 stores. The bankruptcy led to the closing of about 600 stores and the termination of 57,000 employees.
2003: Kmart exits Chapter 11 bankruptcy protection as Kmart Holding Corp.
2004: Kmart announces plans to combine with Sears, Roebuck & Co. in an $11 billion deal. The combined company will be headquartered in the northwestern Chicago suburb of Hoffman Estates, where Sears has its headquarters -- and the company will be called Sears Holdings.
What's really in it for Kmart?
Is this a retail deal or a real estate deal? Kmart has generated cash selling off properties since it emerged from bankruptcy. As a result, shares have skyrocketed.
And Sears stock recently saw a pop when Vornado Realty Trust (VNO, news, msgs) bought a 4.3% stake, leading to speculation the chain would sell desirable property for development or sell stores and lease them back to bolster cash positions.
Another reason for the deal could be Kmart's difficulty in turning around its retail business. Kmart said it earned 59 cents per share, excluding items, in its fiscal third quarter, well below the Reuters Estimates consensus of 72 cents per share. Sales at stores open at least a year fell 12.8% for the quarter, with total sales dropping 13.7% from the year-ago period to $4.4 billion.
'They both bring to the table diverse opportunities, but it's not clear if they are merging to make them more able to stand up to Wal-Mart's greater strength or if this is a real estate deal,' Kurt Barnard, president of the Retail Consulting Group, told Reuters.
'It's really about changing the playing field,' NPD's Cohen said. 'Kmart's just changed from being a Wal-Mart/Target focus' to taking very strong discount brands like Martha Stewart and Joe Boxer into the mall, he said.
About 48% of consumers who shop in malls don't shop in discount stores, so they two companies have just added a huge consumer base that doesn't cross-shop, Cohen said. The larger company will also give it greater buying power with distributors and wholesalers, he added.
-- Kim Khan
Kmart snaps up Sears for $11 billion
The two struggling chains agree to a surprise merger. The market wonders if the deal is about retail or real estate.
Kmart (KMRT, news, msgs) agreed to acquire Sears Roebuck (S, news, msgs) today in a deal the companies value at $11 billion, combining two of the most famous names in retailing.
Shares of Sears jumped $9.43, more than 20.86%, to $54.63 on the New York Stock Exchange, while Kmart gained $16.58, or 16.38%, to $117.80 on the Nasdaq in morning trading.
The combined company is expected to have $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores, meaning it will trail only Wal-Mart Stores (WMT, news, msgs) and Target (TGT, news, msgs). Both competitors' shares declined on the news; Wal-Mart shed 99 cents to $55.90, while Target was down 8 cents to $51.30.
Martha Stewart Living Omnimedia (MSO, news, msgs) rose $2.35, or 14 to, to $19.75 as investors bet the merger would lead to a broader merchandising agreement. Kmart sells Martha Stewart products in the United States, while Sears sells the company's products in its stores in Canada.
The new stock will certainly be attractive, NPD Group Chief Retail Analyst Marshal Cohen told CNBC's 'Morning Call.' Cohen called the combination a 'win-win situation.'
'You can now go into stores that you couldn't go into before to buy certain products,' Cohen said. 'You're going to be able to buy Craftsman tools at Kmart.'
Kmart chairman will hold new company's top spot
As part of the deal, Kmart shareholders will receive one share of Sears Holdings. Sears shareholders have a choice between $50 in cash, a 10.6% premium over Tuesday's close, or 0.5 share of Sears Holdings.
Kmart Chairman Edward Lampert will be chairman of the new company. Sears Chairman and CEO Alan Lacy will be vice chairman and CEO of Sears Holdings, with Kmart CEO Aylwin Lewis becoming president of the new company.
'The combination of Kmart and Sears is extremely compelling for our customers, associates and shareholders as it will create a powerful leader in the retail industry, with greatly expanded points of distribution, leading proprietary home and apparel brands and significant opportunities for improved scale and operating efficiencies,' Lampert said in a statement. 'The merger will enable us to manage the businesses of Sears and Kmart to produce a higher return than either company could achieve on its own.'Goodbye, Kmart
A look at the history of Kmart Holding Corp., which on Wednesday announced it would merge with Sears, Roebuck & Co.:
1899: S.S. Kresge Co. founded by Sebastian S. Kresge.
1912: The company incorporates in Delaware with 85 stores and sales of $10,325,000.
1918: S.S. Kresge Co. becomes publicly traded company, listed on the New York Stock Exchange.
1929: Canadian subsidiary S.S. Kresge Co. Ltd. is founded. By year end, 19 stores operating in Canada.
1962: Company opens first Kmart discount department store in a suburb of Detroit. Seventeen other Kmart stores open the same year.
1966: Founder Sebastian S. Kresge dies at age 99.
1966: Sales top $1 billion mark for the first time. Number of stores climbs to 915, including 162 Kmart stores.
1977: Name changed from S.S. Kresge Co. to Kmart Corp. to reflect that in 1976, sales at Kmart stores accounted for 94.5% of the company's domestic consolidated sales.
1981: The 2,000th Kmart store opens. At year end, there were 2,055 Kmart stores in the U.S., Canada and Puerto Rico.
1987: Kmart introduces Martha Stewart, entertainment and lifestyle spokeswoman and consultant.
1997: Kmart launches Martha Stewart Everyday line of bed and bath fashions, and complementary paint line.
2002: Kmart files for Chapter 11 bankruptcy protection. At the time, the company had 2,114 stores. The bankruptcy led to the closing of about 600 stores and the termination of 57,000 employees.
2003: Kmart exits Chapter 11 bankruptcy protection as Kmart Holding Corp.
2004: Kmart announces plans to combine with Sears, Roebuck & Co. in an $11 billion deal. The combined company will be headquartered in the northwestern Chicago suburb of Hoffman Estates, where Sears has its headquarters -- and the company will be called Sears Holdings.
What's really in it for Kmart?
Is this a retail deal or a real estate deal? Kmart has generated cash selling off properties since it emerged from bankruptcy. As a result, shares have skyrocketed.
And Sears stock recently saw a pop when Vornado Realty Trust (VNO, news, msgs) bought a 4.3% stake, leading to speculation the chain would sell desirable property for development or sell stores and lease them back to bolster cash positions.
Another reason for the deal could be Kmart's difficulty in turning around its retail business. Kmart said it earned 59 cents per share, excluding items, in its fiscal third quarter, well below the Reuters Estimates consensus of 72 cents per share. Sales at stores open at least a year fell 12.8% for the quarter, with total sales dropping 13.7% from the year-ago period to $4.4 billion.
'They both bring to the table diverse opportunities, but it's not clear if they are merging to make them more able to stand up to Wal-Mart's greater strength or if this is a real estate deal,' Kurt Barnard, president of the Retail Consulting Group, told Reuters.
'It's really about changing the playing field,' NPD's Cohen said. 'Kmart's just changed from being a Wal-Mart/Target focus' to taking very strong discount brands like Martha Stewart and Joe Boxer into the mall, he said.
About 48% of consumers who shop in malls don't shop in discount stores, so they two companies have just added a huge consumer base that doesn't cross-shop, Cohen said. The larger company will also give it greater buying power with distributors and wholesalers, he added.
-- Kim Khan
Member since
Re: Wow! Sears and Kmart merge???
Posted by MrsTC
I heard about that...
IMO, they should have just bought out K-Mart and did away with the K-Mart name. K-Mart is failing....on the weekends, I always skip K-Mart bc they have crap (except for the Martha Stewart stuff) and I head to 1) Wal-Mart and then 2) Target.
I agree. I think there is a negative stigma attached to Kmart. Then again, Sears hasn't always had the best rep. I think Lands' End has helped them appeal to a different clientele
Member since
Re: Wow! Sears and Kmart merge???
i hate kmart.. for some reason the stores always seem dirty. i dont know why.
i dont like sears either though.. i guess that's cause i work there and i know they treat the employees (to put it nicely) less than favorable.
so yea, i guess it makes sense for the two of them to merge.
i dont like sears either though.. i guess that's cause i work there and i know they treat the employees (to put it nicely) less than favorable.
so yea, i guess it makes sense for the two of them to merge.
Member since
Re: Wow! Sears and Kmart merge???
my grandma ALWAYS gives Sears gift certificates for holidays/birthdays. I don't know why.... I guess its better than when she used to give us Sears sweaters which I would never wear. Their clothes have improved a little.
