Macy’s Inc. Not Interested in Sears Canada

May 14, 2014 3:47 PM  By

free-shipping-canadaSears Holdings announced Wednesday that it is exploring strategic alternatives for its 51% interest in Sears Canada, including a potential sale of Sears Holdings’ interest or Sears Canada as a whole.

But don’t expect Macy’s Inc. to make an offer.

During its first-quarter earnings call on Wednesday, Macy’s CFO Karen Houget said CEO Terry Lundgren is not interested in Canada.

“International is still something that’s intriguing but nothing eminent in terms of significance,” Houget said. “[Chairman and CEO] Terry [Lundgren] has not been interested in Canada and has been more interested in China.”

Houget acknowledged Macy’s Inc. is exploring global opportunities for both Bloomingdale’s and Macy’s, and that Bloomingdale’s has a license deal in Dubai which has been a “very successful venture” for the company and the partner.

Sears Canada was spun off by Sears Holdings in November 2013. Sears Canada’s same-store sales for fiscal 2013 were down 2.7%, but overall revenues dropped 8.2%

In its corporate overview, Sears Canada claims to have the country’s most extensive general merchandise catalog, with more than 1,400 merchandise pick-up locations. Its corporate offices are in Toronto, and it has two catalog centers, one in Belleville, Ontario and the other in Regina, Saskatchewan.

Sears is not the only U.S.-based merchant to have difficulties in Canada. Office Depot announced last month that it would close all 19 of its Canada-based OfficeMax Grand & Toy retail stores.

And Office Depot had a good reason to close the stores: During its first-quarter conference call, Office Depot chairman and CEO Roland Smith said just 3% of OfficeMax Grand & Toy come from the bricks-and-mortar channel.

Smith said Office Depot believes it can serve its customers in Canada much more efficiently through its ecommerce site, field and telephone sales representatives and customer service centers.