Sears shoppers need not panic over retailer’s bankruptcy
For years, there have been reports of Sears death spiraling toward the corporate graveyard alongside other popular brick-and-mortar retailers.
The company, once one of the great brands of America, has managed to stay afloat in recent years by borrowing cash from its CEO and selling off desirable assets such as real estate and brands.
Now, Sears filed for Chapter 11 bankruptcy protection early Monday morning. But just because Sears Holdings Corp is in trouble doesn’t mean consumers have to be. In the wake of all that’s happening, here’s what Sears shoppers should know:
Question: Will my local store close?
Answer: Possibly. Before filing for bankruptcy on Monday, Sears had announced that 46 of its underperforming stores are closing in November. The plan involves shutting 13 Kmart locations and 33 Sears stores in several states. Now, with the filing, the company says it will close another 142 unprofitable stores. You’ll need to check to see if your local stores are affected. Sears reminds that its “online channels are open and ready” as an option as well.
Q: Can I still use my gift card?
A: “We are accepting gift cards. Please come to our stores or shop online to use them,” the company says in its online Q&A. Experts typically suggest that you put them to use ASAP.
“In general, people shouldn’t hold on to gift cards,” said Katherine Hutt, director of communications for the Council of Better Business Bureaus.
Q: What’s the best time to shop for deep discounts?
A: Now – maybe. “You have to be careful though. Yes, some items are going to be deeply discounted, but it is also likely they will be marked ‘no return,’ ”Hutt said.
Q: I purchased an extended warranty. Will Sears still honor it?
A: “We are currently honoring our warranties, protection agreements and guarantees as normal,” Sears says. However, notice the wording – “currently.” When Sears closed its Canada stores last year, the retailer stopped honoring extended warranties. Refunds on protection agreements were only allowed if purchased within 30 days of the company’s liquidation announcement.
Q: Will my appliances still be serviced by Sears Home Services technicians?
A: Sears says yes, the “Sears Home Services is operating as usual.”
Q. I just bought an appliance from Sears. Should I return it?
A: “They probably won’t take back a major appliance,” says Edgar Dworsky, a former Massachusetts assistant attorney general in consumer protection and founder of ConsumerWorld.org, but what you can try and do is cancel the extended warranty from Sears if you had just purchased it. A number of credit cards now include extended warranties as part of their perks, so depending on the card you used you may be covered there. You also can purchase warranties from outside companies such as SquareTrade.
Q. If I have a product purchased from Sears should I get even small things fixed now?
A: “I would not delay if you need any repair,” Dworsky says.
Q: Will the return policy change?
A: It shouldn’t change immediately, according to the Better Business Bureau. And, according to Sears, exchanges, returns and cancellations can be made “in line with our usual terms.”
Q: What about layaway?
A: The company says “leasing and layaway continue as normal.” However, Hutt suggested that “if you have anything on layaway, you should go get it and pay it off.”
Q: What about my Sears credit cards and all of my rewards points?
A: “Your cards should work as they normally do,” Sears says in its online Q&A.
Q: And will I still be able to get cashback or Sears Your Way points and discounts?
A: The company says it has “sought authority to continue these programs.” But if a customer has points, they should plan on redeeming sooner than later. Toys R Us stopped accepting rewards the day before the companywide liquidation sale began in March. Like with most rewards programs, the terms of Sears’ program spells out the program can change “at any time and without notice.”
Q: Will Sears Auto Center remain open?
A: Generally, yes. “Sears Auto Centers remain open. ... We are currently honoring our warranties, protection agreements and guarantees as normal.”