The New Year Has New Urgency for Best Buy, RadioShack, J.C. Penney and Sears
These unlucky retailers are going into the New Year with extra woes: slipping sales, questionable strategies and tight finances—which is why they are the ones to watch, and not in a good way.Comments (an average Joe's perspective on retail):
- Best Buy: We were there 2 years ago (I think January 2010) and bought a new printer. Best Buy's problem is: Amazon and the recent recession. My kids are bugging me to buy and HD TV but I am holding off until the giant tube dies! A guy at church is on the Geek Squad. I am rooting for him!
- Sears: I don't believe we have shopped at Sears for more than a decade. It used to be my go-to place for auto repairs, tires, et cetera. Replacement go to places: Batteries Plus, Warners' Stellian (appliances), any tire store, any place other than Sears for clothing.
- Radio Shack: The last time we were in a Radio Shack was several years ago on vacation when we needed a cell phone connector of some kind.
- J C Penney: Kathee wanted to have new window treatments in the L/R, Kitchen and dinning room. We called in Ethan Allen. After I got the quote, I called J C Penney and their price was about 40% of Ethan Allen.
From an investing perspective I wouldn't touch these companies with a ten-foot pole: SHLD, JCP, BBY, RSH.