FINANCE

Sears faces class-action lawsuit by Canadian ‘Hometown’ store dealers

BY Marianne Wilson

Toronto — A "Sears Hometown" store owner in Woodstock, Ontario (Canada), has launched a class action lawsuit on behalf of approximately 260 Sears Hometown dealers across Canada against Sears Canada and its American affiliate, Sears. Both are subsidiaries of Sears Holding Corp.

The lawsuit alleges that Sears lowered dealers’ commissions, reduced advertising for local stores and bypassed the franchises by selling directly to customers who are located within their markets.

The dealers also claim that Sears is setting their compensation and work conditions, without abiding by labor laws or franchise protection laws.

"We are tired of disappointing our customers because we lack the resources to serve them properly," said Jim Kay, the dealer who filed the class-action lawsuit, in a statement. "We are tired of disappointing our customers because we lack the resources to serve them properly. We are tired of facing the public without a smile, because we know there is no paycheck at the end of the week. We are tired of being fed scraps for the benefit of a U.S. hedge fund billionaire."

keyboard_arrow_downCOMMENTS

Leave a Reply

L.Sampson says:
Sep-23-2013 06:47 pm

In the exact same boat
I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

L.Sampson says:
Sep-23-2013 06:47 pm

In the exact same boat
I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

L.Sampson says:
Sep-23-2013 06:47 pm

In the exact same boat
I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

L.Sampson says:
Sep-23-2013 06:47 pm

I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

L.Sampson says:
Sep-23-2013 06:47 pm

I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

L.Sampson says:
Sep-23-2013 06:47 pm

I am Sears Hometown Store owner in the United States, and, it is the exact same thing here. We are not surviving, much less making a profit. The business model is designed to solely support the holding company and not benefit the owner. Sears puts the inventory in the stores while the owner is solely responsible for the overhead and operating expenses of their store. The margin is so low, it is unbelievable. Owners are paid on average less than 10% margin on sales plus have the "opportunity" to earn a so called bonus based on specific metrics set forth by the holding company. I expect to see a drastic decrease in Sears Hometown Store owners in the near future. Unless SHOS can come up with a much greater commission percentage that benefits the owners and makes the endeavor worthwile, they will not be around long.

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Report: Jones Group exploring possible sale

BY Staff Writer

New York — Jones Group Inc. has tapped Citigroup Inc. to explore a possible sale, according to Reuters.

In April, Jones Group said that it would close 170 stores and cut 8% of its workforce after first-quarter profit was less than analysts’ estimates. The news comes just months after activist hedge fund

The company, whose brands include Stuart Weitzman, Jones New York, Easy Spirit, and Nine West, had a market value of about $1.2 billion as of July 5.

The news comes just months after activist hedge fund Barington Capital took a seat on the Jones Group board of directors amid a push to persuade the company to trim its more than 35 brands, Reuters said.

keyboard_arrow_downCOMMENTS

Leave a Reply

O.Mori says:
Jul-09-2013 05:05 am

I have you bookmarked
I was very encouraged to find this site. I wanted to thank you for this special read. I definitely savored every little bit of it and I have you bookmarked to check out new stuff you post. Menurunkan Berat Badan

O.Mori says:
Jul-09-2013 05:05 am

I was very encouraged to find this site. I wanted to thank you for this special read. I definitely savored every little bit of it and I have you bookmarked to check out new stuff you post. Menurunkan Berat Badan

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
OPERATIONS

Shaw’s, Star Market eliminate loyalty card

BY Staff Writer

West Bridgewater, Mass. — Shaw’s and Star Market have ended their loyalty card program. The program offered shoppers sale prices on selected items.

In line with the decision to drop the loyalty card program, Shaw’s and Star Market announced they are lowering prices on thousands of items across all of its 169 locations.

“All of our customers deserve to get the lowest price on their groceries without needing to carry a Rewards Card with them,” said Shane Sampson, president, Shaw’s and Star Market. “Every customer who walks through our door deserves our best — from service to foods to pricing — and these lower prices are what our customers can expect from us every time they visit one of our stores.”

Shaw’s and Star Market’s decision to eliminate the program puts the company in line with such fast-growing grocers as Trader Joe’s and Aldi’s, which use low prices to drive sales.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...