Sears Holdings looking to leave Illinois

[1953]

Harvard's Michael Porter, a foremost expert on corporate strategy, would probably say that Sears' business units should be based near other similar types of businesses [[for example, their tool division near other tool companies and their apparel division near other apparel divisions). As for their home base headquarters, that should probably be near other large department store headquarters. The advantages of co-locating similar types of businesses are numerous and are described in Porter's numerous articles about strategy and economic clustering.

[Bham1982]

Got to agree. Sears to me means tools tires and batteries.

Yes, but Sears Holdings also includes HomeGoods, The Great Outdoors, Lands End, Joe Boxer, etc.

[professorscott]

Harvard's Michael Porter, a foremost expert on corporate strategy, would probably say that Sears' business units should be based near other similar types of businesses [[for example, their tool division near other tool companies and their apparel division near other apparel divisions). As for their home base headquarters, that should probably be near other large department store headquarters. The advantages of co-locating similar types of businesses are numerous and are described in Porter's numerous articles about strategy and economic clustering.

It would be sensible for Sears Holdings to pay heed to Dr. Porter's advice; if it did so, it would be the first sensible thing Sears Holdings has ever done.

[illwill]

Sears will not be going anywhere.

Basically their tax incentive is expiring next year and they're looking to get another deal. The Governor has already addressed the issue. They've always been in the Chicagoland area and they have no intentions of ever leaving. Several businesses are pulling this scam in order to get tax incentives to stay in Illinois. Catepillar, Sears, Motorola and others.

Bottom line is Illinois is a great geographical location to have a business and these companies do not want to leave. They just want better tax incentives and they'll get them.

[Bham1982]

Bottom line is Illinois is a great geographical location to have a business and these companies do not want to leave. They just want better tax incentives and they'll get them.

If Illinois has such a "great geographical location", then why does it have one of the worst job markets in the nation?

Heck, the Midwest as a whole has the worst economy but the best geographical location.

You're probably right though that they're trolling for massive tax breaks.

[ghettopalmetto]

If Illinois has such a "great geographical location", then why does it have one of the worst job markets in the nation?

Because we keep shipping manufacturing jobs--on which the Great Lakes region is heavily reliant--to China and Southeast Asia. That's why.

[old guy]

Sears Holdings shouldn't be in Illinois, .

Other than possibly the small fact that it was founded in Chicago in 1886.

[JBMcB]

As for their home base headquarters, that should probably be near other large department store headquarters. The advantages of co-locating similar types of businesses are numerous and are described in Porter's numerous articles about strategy and economic clustering.

So, Macy*s [[Federated) is in Cincinnati, Niemann Marcus is in Dallas, Penny's is in Plano, Nordstrom is in Seattle, Saks is in NYC, Dillard's is in Little Rock, Wilkes-Bashford is in San Francisco, Bon-Ton is in Pennsylvania, Filine's is in Boston, Von Maur is in Davenport, Parisian is in Birmingham, AL...

There really isn't a "hub" of department store headquarters - so where should they locate?

Texas is a good bet. Low taxes, good services, decent climate, stable housing market [[on average - no boom or crash, go figure)

[coracle]

Caterpillar has also been looking at the possibility of leaving Illinois to escape the confiscatory tax levels the State imposes on businesses. Left leaning States like Illinois punish their businesses until they start leaving then blame it on States that offer "tax incentives". Illinois - it's their own stupid fault businesses want to leave.

[Hypestyles]

Perhaps Dan Gilbert can convince some of the Sears folks to come here since he has bought the Chase bank building..

[ghettopalmetto]

Caterpillar has also been looking at the possibility of leaving Illinois to escape the confiscatory tax levels the State imposes on businesses. Left leaning States like Illinois punish their businesses until they start leaving then blame it on States that offer "tax incentives". Illinois - it's their own stupid fault businesses want to leave.

Yes, taxes are everything, which is why Mississippi is the economic development Center of the Universe.

Did you ever stop to think that some states pursue economic development without whoring their workers like cheap Third World prostitutes? States like Illinois can have a reasonable degree of confidence that the education and talent of their workers is high, and that employers will pay a premium for quality workers and a high standard of living.

You get what you pay for. If I were Illinois, I'd say, "Fine. Leave. Just *try* to do as well somewhere else as you've been doing here. We'll see you again when your tax breaks run out."

[lilpup]

Harvard's Michael Porter, a foremost expert on corporate strategy, would probably say that Sears' business units should be based near other similar types of businesses [[for example, their tool division near other tool companies and their apparel division near other apparel divisions). As for their home base headquarters, that should probably be near other large department store headquarters. The advantages of co-locating similar types of businesses are numerous and are described in Porter's numerous articles about strategy and economic clustering.

Due out in June. Can't wait!!

Car Guys vs. Bean Counters: The Battle for the Soul of American Business

Lutz at the New York auto show last month: "There was way too much Harvard Business School-type, profit-optimization thinking as opposed to customer excellence focus."

[oladub]

GP, Boeing wanted to locate a factory in your state but the Obama administration jumped in and prevented Boeing from creating jobs in South Carolina. There is always China I guess. I don't remember the Obama administration barring US companies from creating jobs in China. But you are a non-union state; bad, bad. China is our banker.

[ghettopalmetto]

GP, Boeing wanted to locate a factory in your state but the Obama administration jumped in and prevented Boeing from creating jobs in South Carolina. There is always China I guess. I don't remember the Obama administration barring US companies from creating jobs in China. But you are a non-union state; bad, bad. China is our banker.

That's because South Carolina, like most other Southern states, sees cheap, expendable labor as its only redeemable asset and whored its workers to Boeing for millions of dollars of public subsidies. The legal issue of which you speak is not the relocation itself, per se, but our illustrious governor's publicly-stated commitment to union busting on behalf of Boeing. That, my friend, is hardly "free market" and reeks of fascism.

I don't know about you, but we certainly don't need government proactively working against its own peoples' right to free association or desire to earn a decent living wage.

[Richard]

Because we keep shipping manufacturing jobs--on which the Great Lakes region is heavily reliant--to China and Southeast Asia. That's why.

True, I wish I had a crystal ball to look into the future as China and southeast Asia workers are starting to stand up and demand more labor money,if that happens then the demand will be high there and their exports to us expensive so it will then be cost effective to manufacture here again,but where is the question.


But it is the politics of business to shop incentives its the way it is ,one does not think the auto manufactures receive millions at the very least in incentives let alone protective non compete convents from the state.

Interesting how it is widely known that at a time the automotive companies are disinvesting in the state and moving into other countries in a major way that MI is also in its biggest disinvestment push,you would think that it would be the other way around.

[coracle]

Yes, taxes are everything, which is why Mississippi is the economic development Center of the Universe.

Did you ever stop to think that some states pursue economic development without whoring their workers like cheap Third World prostitutes? States like Illinois can have a reasonable degree of confidence that the education and talent of their workers is high, and that employers will pay a premium for quality workers and a high standard of living.

You get what you pay for. If I were Illinois, I'd say, "Fine. Leave. Just *try* to do as well somewhere else as you've been doing here. We'll see you again when your tax breaks run out."

Your reference to Mississippi is totally irrelevant as neither company is considering moving there, and there was no need to demonstrate your derision for the population of this wonderful State.

And no, I don't stop to consider the Left Wing crap you are spewing against organizations that actually create productive jobs that pay for the State public workers that tax them.

[Bham1982]

Other than possibly the small fact that it was founded in Chicago in 1886.

And how is that relevant in 2011?

Sears was originally a catalog merchant, and Chicago was a perfect location for catalog retailing. Obviously this is meaningless in 2011.

[Bham1982]

So, Macy*s [[Federated) is in Cincinnati, Niemann Marcus is in Dallas, Penny's is in Plano, Nordstrom is in Seattle, Saks is in NYC, Dillard's is in Little Rock, Wilkes-Bashford is in San Francisco, Bon-Ton is in Pennsylvania, Filine's is in Boston, Von Maur is in Davenport, Parisian is in Birmingham, AL...

Federated is in Manhattan, not Cincy. Cincy is official HQ, but management is all in Manhattan.

Most of the other retailers you list have tiny market share or no longer exist.

And places like JCPenney, while management or HQ isn't in NYC, have their design and buying teams in Manhattan or environs.

So it's probably fair to say that the NYC area is the nation's primary retail hub. LA is another major hub, due to the strong garment industry and ties to Asian manufacturing.

[ferntruth]

Your reference to Mississippi is totally irrelevant as neither company is considering moving there, and there was no need to demonstrate your derision for the population of this wonderful State.

And no, I don't stop to consider the Left Wing crap you are spewing against organizations that actually create productive jobs that pay for the State public workers that tax them.

Wonderful state? You need to visit the rest of the US. Mississippi is about as bad as States get.

[bailey]

That's because South Carolina, like most other Southern states, sees cheap, expendable labor as its only redeemable asset and whored its workers to Boeing for millions of dollars of public subsidies. The legal issue of which you speak is not the relocation itself, per se, but our illustrious governor's publicly-stated commitment to union busting on behalf of Boeing. That, my friend, is hardly "free market" and reeks of fascism.

I don't know about you, but we certainly don't need government proactively working against its own peoples' right to free association or desire to earn a decent living wage.

Don't disagree with that mostly....however, the right to freely associate should also come with the right to NOT associate if one so chooses. Right?

[old guy]

And how is that relevant in 2011?

Sears was originally a catalog merchant, and Chicago was a perfect location for catalog retailing. Obviously this is meaningless in 2011.

Meaningless to who? Some person that's venting on a forum, or the city of Chicago. Sears was founded in Chicago 17 years before the Ford Motor Company was founded in Detroit. Is it meaningless for Ford or GM to remain in Detroit in 2011? Perhaps to someone that lives in a different part of the country. But I doubt that it would be meaningless to the citizens of Detroit.

I live in the area where Land's End was founded. When Sears acquired that company it wasn't meaningless to the people that live in this area.

[jiminnm]

So, Macy*s [[Federated) is in Cincinnati, Niemann Marcus is in Dallas, Penny's is in Plano, Nordstrom is in Seattle, Saks is in NYC, Dillard's is in Little Rock, Wilkes-Bashford is in San Francisco, Bon-Ton is in Pennsylvania, Filine's is in Boston, Von Maur is in Davenport, Parisian is in Birmingham, AL...

You forgot the world's largest retailer - Wal-Mart, located in Bentonville Arkansas.

[Gistok]

You forgot the world's largest retailer - Wal-Mart, located in Bentonville Arkansas.

Funny but true jiminnm.... isn't Arkansas unofficial state motto "At least we're not Mississippi"? [[Ducking for cover....)

[ghettopalmetto]

Don't disagree with that mostly....however, the right to freely associate should also come with the right to NOT associate if one so chooses. Right?

The point you raise, bailey, is a non-issue in the 23 states that have "Right to Work" laws. Unions, however, will argue that even non-union members benefit from union presence in a shop, and should thus be required to pay dues for receipt of those benefits.

What I *do* have a problem with, is when the Governor publicly declares that she is "going to work on behalf of Boeing to keep the unions out". And then appoints a lawyer with a history of union busting to head the state Department of Labor. Do you think either of these officials gives a rats ass about the people of this state who only want decent wages and safe working conditions in exchange for the millions of tax dollars they've fed to this particular corporation? We're being asked to dig our own graves before being summarily executed.

As a large corporation, Boeing already has tremendous power. The citizens of this state don't need two powerful behemoths working against them, especially when one of those two is [[in theory) supposed to represent their interests. Gov. Tea Party has made it clear that our state government exists primarily for the benefit of wealthy corporations, and that the people are only here to feed our tax dollars upward to out-of-state corporate boardrooms.

[jiminnm]

Funny but true jiminnm.... isn't Arkansas unofficial state motto "At least we're not Mississippi"? [[Ducking for cover....)

Since I have relatives in Little Rock and drive through the state 6-8 times a year, I have to correct you. The correct motto is "At least we're not Mississippi, Louisiana or Alabama."