Sears Said to Be Investigating Possible Data Breach

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Feb. 28 (Bloomberg) –- Telsey Advisory Managing Director Joe Feldman discusses Sears’ possible data breach and its impact on customers and the company’s bottom line. He speaks to Julie Hyman and Trish Regan on Bloomberg Television’s “Street Smart.” Feldman doesn’t own any stock in Sears. (Source: Bloomberg)

If this is what is going on at sears, you having someone while they are down.

Sears is a deeply troubled retailer already.

What effect could something like this have?

It is just more caution from consumers.

I would think it is another reason to avoid shopping at sears.

You do see an initial hit to the retailer when this happens.

People stop shopping for a little while, maybe take some time.

But we have seen them come back.

Even target this week when they reported quarterly earnings said in the last couple weeks they have seen traffic picking up again.

Neiman marcus reported same-store sales, a 5.5% comp.

Do people almost become blase about this?

We know there are privacy concerns with facebook, yet facebook still has millions and millions of users.

As a gateway point in retail where this is something you expect to happen and be defensive about it, and still shop where you would shop anyway?

That is what we believe.

I have heard all sides of this.

I'm sorry, joe.

Come on.

You really think someone wants to willingly shop at target right now?

Look at the sales slump in the latest quarter.

I know i would think twice about going into target.

Why wouldn't i think twice about sears or neiman marcus?

It is hard to say, i will just ignore these headlines.

But every time you pull out their credit card and viewing -- use it, on amazon or anyone else, it is just as much at risk.

I agree.

The problem is amazon has not had the issue.

It didn't happen at walmart, didn't happen in other places.

If it does, sure, a consumer will think was about shopping at those retailers.

I just get back to -- isn't as damaging to a company's brand?

The initial hit is damaging financially, right away.

The brand reputation is how you deal with that.

Do you provide more security?

Do you provide discounts?

Do you provide free credit monitoring, like target is doing?

That is how you can kind of recover.

I definitely agree.

Target has taken a hit and it will take time, but the good news is it is starting to ease with time.

It is one of those things people forget over time and make an adjustment and go back to normal behavior.

Again, i have had plenty of people, investors that i speak to, clients on a day-to-day basis they, i have had my data stolen before.

Real quickly here, what has -- does sears or target need to be doing better?

Will we see expense increases?

You will see more expense going towards technology over the next year or two.

It has been going that way anyway because of e-commerce, building up that infrastructure.

We need those smartcards.

We do.

Thank you, joe feldman.

Appreciate it.

We will be right back.

This text has been automatically generated. It may not be 100% accurate.


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