Premium retail space in premium markets is no longer a draw in a market shifting further online. Many shopping malls struggle to find profitable tenets and now the problem is hitting Fifth Avenue as well.
The above article is a great read on how an iconic American company lost it’s way.
Sears made many mistakes along the way. The lack of concern about the rise of Walmart, Best Buy, and Home Depot. The merger with a bankrupt KMart. The clear lack of concern for store maintenance and appearance. The biggest one was not really knowing its customers and prospective customers.
From the above article,Sears did a lot of things first that are now staples of retail. But, their customer base was not one that sought those conveniences. A clear lack of connection was Sears believing its customers would drive 25 miles to purchase an appliance if they had any other option.
Like many mature companies, Sears leadership valued returns more so than customer growth. Profitability in the near term placed greater importance than profitability in the long term. Sears needed to connect with new audiences to augment its base.
Sears was a great retailer that stood by its products. Sears was a fixture in the homes of many generations. The shame is many future generations may not experience the unique experience of shopping at a Sears.
Walmart employee app gives physical stores more power – Business Insider
The ability to sell to cash customer is a slight advantage Walmart has on Amazon, but the ability to leverage store inventory as well as distribution inventory is another.
The only problem with the new strategy is the ability of the Walmart workers to effectively satisfy customers. It is no secret Walmart struggles with in-store customer service. The increased engagements may not improve the perception.
As Amazon continues to consider brick and mortar stores, retailers need to figure out how to improve the in-store experience to keep consumers coming back. Amazon is not perfect in its service by any means, but provides convenience.
Sears Prepares for Bankruptcy Filing as Debt Payment Looms – The Wall Street Journal. https://www.wsj.com/articles/sears-hires-advisers-to-prepare-bankruptcy-filing-1539136189
The iconic once retail giant may be nearing its final stretch. Or maybe it can dwarf into a profitable condense form of itself. If the latter, it will need to find a way to develop and connect with a new target market not already retired.
At one point Sears dominated the retail landscape, largely because it was the first general retailer to market offerings for the entire family and the one willing to stand by its products. As the market change with new players, Sears never effectively captured a new market group.
If Sears does survive, it needs to have a narrower focus. One approach could be deconstruction of their retail concept by creating two distinct chains. One could be a clothing targeting people that may not be served by more trendy stores or a channel for professionals looking for everyday affordable clothes. Another would be an autonomous Sears Auto not tied to a store.
At this point, the Sears leadership team is probably focused on seeing how many tomorrows it has left. If there some, they need to consider what those days will look like.