News

Sears might spin off Land's End, auto center businesses

October 31, 2013

After losing money in back-to-back quarters, Sears is suggesting that it might spin off its Land's End and auto center divisions to raise some much-needed capital.

The often-snarky blog Consumerist (which is owned by Consumer Reports), notes that the money would be used to prop up the retailer's core businesses, "whatever those are."

The company doesn’t make sales numbers for just Lands’ End public, but experts speculate that it’s more profitable than the rest of the company overall. The auto centers don’t have as much potential as a standalone business, partly because they’re so closely identified with Sears, in branding and in physical space.

MarketWatch blogger Andria Cheng notes that investor reactions have been mixed, with criticism pointed at CEO Eddie Lampert for "not spending enough to spruce up stores." She also noted that Land's End's market share has declined significantly since the retailer acquired it in 2002.

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