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Re: sorry for the lack of lbc content

To: <ptegler@cablespeed.com>
Subject: Re: sorry for the lack of lbc content
From: "Kai M. Radicke" <kradicke@wishboneclassics.com>
Date: Wed, 17 Nov 2004 20:25:02 -0500
> Well.... anyone that use to like Craftsman or considered it a > 'quality'
backed product line ...can kiss that good-bye!
> K-mart just bought Sears!  11 billions dollar deal!
> There's no way Kmart can/will continue 'quality'. There
> isn't any way they'll be able to maintain the 'Sears' brand
> loyalty by bring in China crap, which is the only way they'll
> be able to  maintain profits.

Perhaps the opposite of that scenario will happen, and I would expect that
you will be wrong once this merger begins to take physical shape.  The CEO
of Kmart, who initiated and is orchestrating this entire merger, seems to
recognize the value of established name brands.  Do not be surprised if we
may see Craftsman tools in Kmart, and not Harbor Freight-ish tools appearing
in Sears.  Remember, Craftsman already has a DIY-economy oriented tool line
dubbed "Companion" tools, and I would suspect these are what will appear in
Kmart along with some lower end Craftsman branded power tools.

I strongly believe that for Kmart and Sears to survive they both had to find
a way to significantly increase their purchasing power, especially when they
are faced with industry giants like Walmart and more recently Target.
Kmart/Sears should be able to cut the number of suppliers they have and also
consoldiate their product lines in an effort to streamline their supply
chain.  How can that hurt any business?

> So who else believes Kmart and Sears BOTH will be out of
> business within five years after this grab for market
> dominance?

Not me, I believe the newly formed Sears Holding Inc will stablize both
retailers and both will begin to flourish once again in the coming years.

I will guarantee you this, if Kmart and Sears had not announced their
merger, one if not both would be defunct in five years time.  I believe this
merger is well thought out and will transition well.  I typically do not
support company mergers, especially when the brands and focus of both
companies overlap and are the merger is carried out in a haphazard fashion
(HP-Compaq merger for example).  The Sears / Kmart merger is a good merger
in my opinion.

The merger is not a bid for market dominance, this is a long term move and
strategy that will help both companies survive.

If the rest of the US is anything like SE PA, then I would not be surprised
if locally you have seen smaller more regional business go bust in the last
year.  A good example that comes to mind would be the local and national
demise of Goods Furniture, Seaman's Furniture, even Sears' Home Furnishing
Stores.  Franks Nursery & Crafts, a fairly large mid-atlantic garden chain,
is folding now (beaten down by Home Depot and Lowes).

You can not beat the retail giants unless you are of competitive size.

Kai

--
Kai M. Radicke
Wishbone Classics
* British Car Parts *
www.wbclassics.com
Ph: 215.945.7250




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