Sears Canada has been struggling and has already laid off a substantial number of employees. A couple of days ago, it let go 245 Canadian employees and announced that it was moving some of its IT, finance and payroll operations to India and the Philippines. We noticed that this announcement didn't come as part of a "broader strategy" for Sears. In fact, it's just more cost cutting. And this cost cutting, in our opinion, looks more like a retailer trying to make itself attractive for a takeover than a retailer trying to turn itself around.
Readers may remember that it was originally Sears Canada's selling back some leases that led to Nordstrom's coming to Canada. Sears also recently sold back three prime Toronto area store leases, possibly opening the door for La Maison Simons in Toronto.
Several insiders tell us that morale at Sears Canada is low, both in its offices as well as its stores. We encourage everyone working at Sears Canada to hang in there, as there may be new positions coming available at some new, exciting retailers.
[Sears Canada website]