There has been a lot of talk about Sears Holdings turning into a REIT lately. Eddie Lampert said in an interview for New York Magazine in 2005 that the real estate was not even factored when coming to a decision on the acquisition of Kmart. It is interesting to see how the company’s objective is beginning to shift from a retail turnaround strategy to an attempt to unlock value with existing brands. The only sure thing with Sears Holdings going forward will likely be the stock repurchase program.
Q; You say Kmart wasn’t a real-estate play.
Lampert: What I focused on when I invested in Kmart was the potential for a revitalized retail operation. We didn’t even do a separate valuation of the real estate.