Can J.C. Penney and Sears Finally Turn Things Around By Cutting Costs?

Shares of retailers J.C. Penney  (NYSE: JCP  ) and Sears  (NASDAQ: SHLD  ) were down this week on the news that they are planning to dramatically cut their respective workforces over the next few months. But with little distinguishable competitive advantages, will this be enough for these companies to keep their heads above water? 

In this segment of the Motley Fool's consumer goods show, Consumer Countdown, CG analysts Michael Finarelli and Sean O'Reilly join host Mark Reeth to figure out what value remains in Sears and J.C. Penney, and if it can be dug up through cost cutting. 

Looking for something a bit more secure?
There's a huge difference between a good stock (which J.C. Penney and Sears may or may not be) and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (6) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 20, 2014, at 7:22 AM, MSFInvestments wrote:

    Guys,

    You forgot to mention Sears Holdings is a holding company and their 30 subsidiaries.

    Here is only one of them = www.seritage.com

    The only comments you made that were correct is that they are not focusing only on the retail. Also, the second largest shareholder, Bruce Berkowitz, has been adding to his shares.

    Lahiem

  • Report this Comment On January 20, 2014, at 7:27 AM, MSFInvestments wrote:

    Guys,

    You did not mention that Sears Holdings is a holding company with 30 businesses within. Here is just one of them, www.seritage.com.

    Another is that Bruce Berkowitz, the second largest shareholder is adding to his position.

    The only valid point you made is that they are not focusing only on their retail.

    Lahiem

  • Report this Comment On January 20, 2014, at 7:30 AM, MSFInvestments wrote:

    Here are two more = www.ubiquityce.com and www.metascale.com

    By the way Dicks has already signed a lease on one of their properties it is not just talks.

    Lahiem

  • Report this Comment On January 20, 2014, at 8:04 AM, MSFInvestments wrote:

    By the way it looks like the interview was taped in a sweat shop.

    Very unprofessional.

  • Report this Comment On January 20, 2014, at 12:47 PM, Dangremaus wrote:

    I agree. Sears is slowly shutting itself down as a retailer. It's a matter of time before the stores are all rented out as other retailers and the company starts turning a huge profit as a REIT.

    I'm betting that Berkowitz and Lampert will finish acquiring the rest of the stock and take the company private within the next year or two as the real estate is quietly converted.

  • Report this Comment On January 21, 2014, at 8:51 AM, MSFInvestments wrote:

    http://blog.searsholdings.com/

    Right from the largest shareholder.

    Lahiem

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2800948, ~/Articles/ArticleHandler.aspx, 9/16/2014 9:54:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement