Yesterday, I made an argument that SHLD’s capital investments were simply not aligned with their objective of creating the next multi-channel retailing force out of the remains of a merged Sears/K-mart combo. I got a couple of requests for the supporting data, so here it is. All source data is from the published annual reports of the relevant companies with a single exception: that is the percent of total capital expenses spent on information technology for SHLD which I assumed at 25% in line with Wal-mart and Target.
Next time, more financials analysis comparing SHLD with its competition to see what else could be at the bottom of their troubled run!
© Vivek Sehgal, 2010, All Rights Reserved.
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