Costco Keeps Up; So Why Can't Sears?

Although GDP was revised upward to much of the business media's stated surprise ( told you so, told you so) no one in their right mind, or without a political ax to grind, can say the economy is good. But is Sears(SHLD Quote) in its pickle because the economy is bad?

In a bit of self-pity, they said so.

They said that the economy was at fault for the terribly disappointing first-quarter report yesterday, as well as increased competition. And the business media, as always eager to please sources and lighten their workload by playing stenographer, almost in unison gave the factors equal weighting. What they did not do often is confine Sears' stale claims about the economy's role in their diminished performance by pairing their results directly and prominently against competitor Costco(COST Quote). It's a curious oversight. While Thursday brought Sears' report to the fore and the obvious implication that they had completely lost their way, Costco also reported and guess what? It was just the opposite. Quarterly net income rose 32%, which was stronger than expected.

That's why I submit the following article for your disapproval. Look how The New York Post mishandled the situation. Here is their lead, which passes along the main excuse made by Sears -- that the lame economy done it: "Sears, surprised by the severity of this year's economic slowdown, swung to a $56 million loss in the first quarter that surprised analysts."

First off, anyone who claims surprise by the economic slowdown at this point in time deserves to have their veracity examined or just might need fifty lashes with a wet noodle from The Business Press Maven. Way, way down in the article, we get this caveat: Their stores are shopworn, but guess what? Their merchandise does not have the right price value mix. Slap a new coat of paint on the stores and that does not change. And, dudes, where is the mention of Costco? Is there one single mention? Negative!