SEARS
Sears Holdings Corporation is a well-known integrated retailer. Sears is a company that has been around for hundreds of years and still exists until now. Sears Holdings Corporation has subsidiaries under it such as Sears, Roebuck and includes Co. It is an integrated retailer providing a wide range of services including services related to shopyourway.com. With online purchases and social sites, members earn points and benefits from various physical and digital formats through shopyourway.com. Generally aware that Sear, Reabock provides a wide range of products and services such as apparel, home apparel, and automotive through its Sears affiliated retail stores in the United States.
In addition, the company also offers a wide range of goods and services through sears.com, landsend.com and specialized catalogs. It is well known that the Syriac is known for its special catalog from the beginning of the company several hundred years ago. In addition, it offers a variety of consumer-exclusive brands of choice in the U.S. such as Kenmore, Craftsman and DieHard. The company provides the country’s largest home service with over 14 million service calls and calls made each year.
THE FALL DOWN OF SEARS
Behind that success, however, there are times the fall down of sears.The biggest retailer of the day was Sears Holdings when the company was about to be declared bankrupt after 125 years in the business.There are a number of factors that have caused Sears to fail in recent years.
The first factor is it diversified too much. Many speculate that the existence of Eddie Lampert, the CEO and chairman of Sears Holdings at the time, was the biggest cause for the company’s downfall. Yes, there’s no denying that he was one of the main causes but Sears struggled before getting into Lampert’s hands.Sears was initially known for home-building products such as the DieHard, Craftman and Kenmore brands, which focused more on men’s shopping. But the company saw that sales had to be further boosted by trying to catch up with female buyers even though the company was in a state of crisis in the 1980s.In 1993, Chief Executive Officer Arthur Martinez, former executive of Saks Fifth Avenue launched the “The Soft Side of Sears” campaign. It aims to attract many female customers and shoppers from school to school. However, that effort did not come as it only made the merchandise more confusing to the buyer as the clothes at the Sears store didn’t work well with the washing machine and the treadmill was also trying to sell. Customers feel that the ad campaign is a starting point that shows that Sears is heading in the wrong direction.
Another factor is Lampert combines too much. Lampert initially bought the Kmart retailer out of bankruptcy and later in 2004 lampert bought the sears. Then, in 2005 he merged the two weak retailers. Fund owners are of the opinion that merging the two giants is improper. In the meantime, he thinks he’ll be able to combine Searsman Sears and Martart Stewart’s home goods with Martini Stewart in a store to create a mix of goods that can compete with Target and Walmart. As such, it will reduce costs by selling less successful stores and then rebuilding smaller, stronger businesses. However, some analysts believe Lampert will not benefit from merging the two retailers. The analyst’s point of view is that sales have not rebounded and shops continue to darken the country as they have been unable to make a profit and shoppers are beginning to look for better options elsewhere.
Too much cut is one of the factors that causes Sears to fail. As another retailer has invested a lot of money into their business, Sears is definitely out. Susquehanna Financial Group reports that Sears in 2017 spent about 91 cents per square foot to make improvements online and in stores, while JC Penney spent $ 4.13, Kohl paid $ 8.12, and Best Buy spent $ 15.36 per square foot making additional. The trend began under Martinez, whose role as Chief Executive Officer from 1995 to 2000 took steps to close more than 100 stores until it was able to stop more than 50,000 workers and put an end to the famous Sears catalog.
He tried to lower the price when sales started to fall to attract his customers back, but the problem just fixed. When Lampert became chief executive officer in 2013, he continued to cut several luxury assets and brands. The company has sold its credit card portfolio to Citibank, Craftman’s maker of Stanley Black & Decker, which runs from Lands’ End and hundreds of closed stores. But it still failed to reinvest in the balance of the store.
In addition, Sears does not have the right to service rights is another factor. While Sears has repairs and other units in-house and in stores that focus on maintenance and other services, it can make a business even more powerful for a company with a broad national strategy. Imagine a designer house
Sears — not just the appliance — repairs and remodeling businesses that rival what other competitors are doing. This can make a huge difference in competing against Home Depot and Lowe in a business. If there is a core competency or foundation for its entire existence it will serve as a future venture and enable it to become an additional business.
Finally, the Sears factor was a less strategic store and place.After World War II sparked a major boom in the retail world, Sears decided to move its growing headquarters into a regional hub instead of a central hub. It is clear that the decision is an irrelevant strategy. The mall is where people buy clothes, shoes and jewelry and hang them. In the middle of the street where people spend more on hard stuff like lawn mowers and washing machines. The company is involved with stores selling products that mall shoppers don’t want, and what they want is not good for Sears. Other retailers take over central and luxury centers. As a result, Sears is lagging behind.
CONCLUSION
The failure faced by sears is due to various factors such as like diversified too much, Lampert combines too much, too much cut, Sears does not get the right to service right and less strategic store and place. The failure factor can be overcome when the company’s executives review what the market wants and what their customers want over time. Not to mention that in order for companies to remain in each other’s markets there must be innovations such as technological advancements to further enhance their marketing.
