Watch this interview from this am with $WFMI Co-CEO’s. They talk about taking the store count to 1200 locations…..
Were will they get all that real estate? Well, we might want to look at where they have been getting it:
Greensboro, NC from Sears
Albany, NY from Sears
Clearwater, Fla from Sears
This Sears in Colorado was the first to become a Whole Foods
Sears Real Estate arm Seritage has over 200 location and over 18M sqft of CRE to lease or redevelop.
Much of the bear case seems to be the CRE is not worth what the bulls think it is. I am of the opinion turning a Sears location that is losing money into a leased $WFMI that generates cash, well, that makes that CRE much more valuable. Further, it when other retailers of all ilk see the success $WFMI is having with $SHLD, I’m sure their interest will increase in other Sears locations. What you are seeing is the slow transformation of a part of Sears Holdings into a REIT.
We also see Sears Canada pulling out of urban centers and it is only a matter of time before Sears US does…..who will take those spots? I’ll refer you to the video above
I also do not think that Sears ramping up its real estate divestitures/redevelopment plans at the same time one is its larger new tenants is ramping up it expansion plans is a huge coincidence.