Analysis: Amazon-Sears deal ‘smart move’
Greg Portell, lead partner in the retail practice of global strategy and management consulting firm A.T. Kearney:
"This is a very smart move from Sears’ perspective. It is able to monetize the Kenmore brand without losing control. In the past, Sears divested brands because it wasn't able to nurture them or get the proper value out of them internally. But in this case, Sears is using the brand differently as an asset, because it clearly has a value that stretches beyond simply being an appliance.
The other angle that jumps out in terms of smart moves is the connection to Alexa. It gives Sears the ability to get into the IoT (Internet of Things) market without having to build their own capabilities. Sears gets to take a premiere technology and integrate it into their products as part of this deal, which is a great way to move forward."
Sam Cinquegrani, CEO, digital marketing technology and services company, ObjectWave Corp:
"If you think of Amazon as your competitor, then you’ve lost the battle. But if you look at Amazon as a partner and a digital marketing expert, one that has capabilities you don’t have, it’s a whole different story. When it comes to e-commerce, Sears was very aggressive, and actually back then, one of the first to post its products online.
Now, Sears is thinking of Amazon as a distribution channel rather than a competitor. And this represents the future of retail. For Sears, why not take advantage of the digital prowess of the biggest ecommerce provider in the number one online marketplace? In the same way that Sears isn’t going to start its own delivery service because it can’t do it as effectively as a UPS or FedEx, similarly with Amazon’s marketing and distribution capabilities."
If this story had came out 5 to 8 years ago then it would be a strategic partnership. At this point this feels more like a last gasp. I remember when rumors of Amazon buying Sears went around and at the time that could have been good for both. Now no to late I'm afraid this is to little to late
Report: Embattled bankrupt electronics retailer gets a lifeline
Against all odds, bankrupt RadioShack is still ticking.
An affiliate of Kensington Capital Holdings will acquire RadioShack’s intellectual property after it submitted a $15 million bid, Reuters reported. Kensington is already owned $23 million by the retailer, dating back to a loan it gave the company some two years ago.
Kensington plans to license the brand back to General Wireless, the bankrupt company that does business as RadioShack, the report said. The company is currently working out its bankruptcy plan in court.
RadioShack filed for bankruptcy twice in two years, most recently in March. It is now a shadow of its former self, with fewer than 100 stores and an online site.
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MarineMax revenue, comp sales sink in Q3
Softness in larger product categories and unseasonal weather in the Northeast dampened MarineMax’s third quarter earnings.
For the third quarter ended June 30, MarineMax’s revenues declined to $329.8 million from $345.6 million for the same period last year. This missed Wall Street’s expectations of $383.01 million.
The nation’s largest recreational boat and yacht retailer’s net income was $14.2 million, or $0.57 per diluted share for the quarter, compared to $13.8 million, or $0.56 per diluted share for the same quarter last year. This also missed analyst expectations of $0.68 per share. Same-store sales decreased 10% after 44% growth last year.
“Reports of industry softness in larger product categories, combined with delayed sales due to unseasonal Northeast weather, dampened our overall revenue, and therefore earnings in the quarter,” said William McGill, Jr., the company’s chairman, president, and CEO.
Based on these factors, the company lowered its full-year earnings per share guidance to between $0.97 and $1.02, down from $1.14 to $1.24. Third quarter results also took a toll on MarineMax’s stock, which opened sharply lower and has dropped to $14.90 — a new low for the year, according to Nasdaq.
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