Money 2 Lessons to Take From the Sears Canada Inc. Collapse

16:06  15 december  2017
16:06  15 december  2017 Source:   The Motley Fool

Halifax to commemorate catastrophic explosion

  Halifax to commemorate catastrophic explosion HALIFAX - Sombre ceremonies will be held across Halifax on Wednesday to mark 100 years since the port city was devastated by a wartime blast that killed or injured about 11,000 people. The catastrophe, known as the Halifax Explosion, remains the worst human-made disaster in Canadian history. Reflecting on the tragedy, York University professor Jack Rozdilsky says it's important to remember what happened that terrible day, even though it may seem like it was too long ago to learn any lessons.

On October 13, Sears Canada Inc . received court approval to liquidate its remaining stores, marking the end of a retailer more than half a century old. The store closures have resulted in the job loss for over 12,000 Canadian workers.

2 Lessons to Take From the Sears Canada Inc . Collapse . Retailers such as Hudson’s Bay Co. (TSX:HBC) and Canada Goose Holdings Inc . (TSX:GOOS)(NYSE:GOOS) can come away with very different takeaways from the collapse of Sears Canada Inc .

a group of people in a store© Provided by Fool

On October 13, Sears Canada Inc. received court approval to liquidate its remaining stores, marking the end of a retailer more than half a century old. The store closures have resulted in the job loss for over 12,000 Canadian workers. It is worth sifting through what went wrong at Sears Canada, so investors can avoid the pitfalls of a story that is becoming very common in the present-day retail sector.

Quotes in the article

Hudson's Bay Co

HBAYF

Landlord of hastily evacuated apartment block calls collapse warning 'absolute lie'

  Landlord of hastily evacuated apartment block calls collapse warning 'absolute lie' The president of a Calgary property management company says his Kensington apartment building did not need to be immediately evacuated of its 125 residents.The 125 residents of Kensington Manor, at 321 10th St. N.W., have yet to get their belongings nearly two weeks after the crisis.

2 Lessons to Take From the Sears Canada Inc . Collapse . Retailers such as Hudson’s Bay Co. (TSX:HBC) and Canada Goose Holdings Inc . (TSX:GOOS)(NYSE:GOOS) can come away with very different takeaways from the collapse of Sears Canada Inc .

And Namaste Technologies Inc . announced that Aurora's wholly owned subsidiary BC Northern Lights and Yahoo Canada Original Videos. 2 Lessons to Take From the Sears Canada Inc . Collapse .

8.27
+0.01
+0.12%
Amazon.com Inc

AMZN

1,174.26
+10.13
+0.87%
Sears Holdings Corp

SHLD

3.87
-0.14
-3.49%
S&P/TSX Composite

0000

16,016.46
-120.13
-0.74%

Traditional brick-and-mortar retail continues to get hammered

Brick-and-mortar retailers have experienced an extremely difficult decade, as the retail industry has undergone transformational change. The rise of online retail giant Amazon.com, Inc. has pushed dozens of retailers to the brink. Toy retailer Toys “R” Us declared bankruptcy in 2017, and clothing retailer Mexx was forced to cease operations in 2014.

Hudson’s Bay Co.(TSX:HBC) has struggled mightily, as it has reported successive disappointing earnings. Internal debate has raged within Hudson’s Bay over whether it should commit to monetizing its real estate holdings rather than fighting a losing battle in retail. This is somewhat of a double-edged sword for Hudson’s Bay, as its brick-and-mortar footprint has always been a drag on operating costs.

Canada is playing the long game with China

  Canada is playing the long game with China Journalism like politics depends on short memories. But many journos appear to be counting on their readers’ suffering instant memory erasure in their critique of the Trudeau China strategy. 

blog 'detronzakolluri.blogdetik.com' is not exists. So Youre Going to Be a Parent: From Pregnancy to Infant ( The Sears

blog 'johnnyhang.blogdetik.com' is not exists. Floor Collapse Claims Two Firefighters (U.S

In a late October article, I’d discussed the sharp rise of e-commerce retail sales in Canada. E-commerce retail sales climbed 41% year over year, according to an August 2017 report from Statistics Canada. Many companies now face an uphill battle to modernize e-commerce platforms, while simultaneously tackling declining profitability when it pertains to the traditional retail model.

Canada Goose Holdings Inc.(TSX:GOOS)(NYSE:GOOS) has put a huge focus on its e-commerce platform and has a small footprint in the form of several flagship stores. Shares of Canada Goose have increased 30.9% month over month as of close on November 22.

Sears Canada shows the ugly side of turnaround efforts

In a recent article, I’d discussed the departure of Hudson’s Bay CEO Jerry Storch and speculated that this likely telegraphed a capitulation to an activist shareholder who had been calling for the company to take advantage of its real estate holdings. In an early October meeting, Storch said that closing stores could begin “a process of slow dissolution” and added that “once the spiral starts, it can’t be stopped.”

Edmonton boy, 6, awarded for quick thinking that saved his mother's life

  Edmonton boy, 6, awarded for quick thinking that saved his mother's life When six-year-old Ronan Male saw his mother collapse in their Edmonton home last spring, he knew exactly what to do. On Monday, he received an EMS Lifesaving Award for saving his mother's life. Denise McCormack has managed her diabetes for 30 years. That night, her blood sugars fell dangerously low and she fell out of bed. Her son was the only one who could help — Ronan's father, Doug, was working out of town.

blog 'narcizaakinnusi.blogdetik.com' is not exists. Drucker on Marketing: Lessons from the Worlds Most Influential Business

blog 'gregmohney.blogdetik.com' is not exists. Household Survey as a Tool for Policy Change: Lessons from the Jamaican

Billionaire hedge fund manager Eddie Lampert has served at Sears Holdings Corp. for over a decade as chairman and was appointed as CEO of Sears Canada in January 2013. Lampert spent billions in share buybacks, while receiving criticism for failing to invest in retail operations. In spite of its plummeting retail sales, Sears reported a profit of $244 million in its last quarterly report before declaring bankruptcy.

Sears Holdings launched a spin-off REIT called Seritage Growth Properties in 2015. Seritage is able to develop properties to drive toward monetization, while Sears benefits from lower rent on said properties.

Investor takeaway

The rise of e-commerce should drive investors to retailers like Canada Goose, and even Aritzia Inc.(TSX:ATZ), over clothing companies with large brick-and-mortar footprints.

Investors can draw clear parallels between the crisis that faced Sears Canada and the ongoing developments at Hudson’s Bay. If history is any indication, the continued push toward real estate does not bode well for the future of its retail operations.

Legalized pot to cost $10 a gram, finance ministers say

  Legalized pot to cost $10 a gram, finance ministers say OTTAWA—Legalized pot will cost Canadians about $10 a gram and Ottawa has agreed to give the provinces 75 per cent of the tax revenues to help cover costs of setting up the new regime.The agreement on the 75-25 tax revenue split came Monday during a meeting between federal Finance Minister Bill Morneau and his provincial counterparts.The ministers pegged the cost at about $10 a gram. Each gram of marijuana would have a tax of $1 on sales up to $10 and a 10-per-cent tax on sales worth more than $10.“Our expectation is that, by keeping prices low, we will be able to get rid of the black market.

blog 'chrisnard.blogdetik.com' is not exists. Take Six: Behind the Scenes with the Parables (Prime-Time Bible Study)

blog 'vickiwilcox.blogdetik.com' is not exists. Heads: Business Lessons from an Executive Search Pioneer epub pdf txt.

The Next Canadian Superbrand You've Never Heard of...

This small-cap stock is "Hidden in Plain Sight!" It's flying under the radar and is being touted as a "royalty collector" by several of our top Canadian analysts.

Right now you aren't on the list to receive our formal "buy recommendation", so don't delay - simply click here to enter your email address and discover how you can access the exclusive report.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Gardner owns shares of Amazon. The Motley Fool owns shares of Amazon.

How ‘sunny ways’ got soiled in the Ottawa swamp .
How ‘sunny ways’ got soiled in the Ottawa swamp Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN.ca or Microsoft.Here is a little tourism tip for the holiday season: Even with the chillier weather, Parliament Hill will be a much more pleasant place to visit over the next few weeks than it was for Canada’s 150th birthday party in July.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!