Quote:
Originally Posted by patrickt
If you were a shareholder of Sears, would you want them to maintain domestic production if it meant lower profits?  |
The choice is either (1) improve margin in the short term but lose customers (who knows how many) and completely eliminate your differentiation from Home Depot and Lowe's, possibly significantly damaging the brand, or (2) lower margin or raise prices in the near term to maintain the brand and differentiation. I'd choose (2). Sears stock is largely a real estate play anyway.