Sears Bankruptcy Could Have Been Prevented
Years ago, Sears was the largest retailer in America, and now they’re filing for bankruptcy.
How does that even happen?
For starters, they’ve been cutting expenses, selling off its real estate, and downsizing in an attempt to stop the bleeding.
It’s tough to shrink your way to profitability!
When you check out the actual numbers of their demise, it’s actually quite stunning how much they’ve plummeted in such a short time:
People have suggested that Sears’ problems are the result of stiff competition and a new retail landscape where more things are purchased online, but that doesn’t explain why Sears’ competition like Lowe’s, Best Buy, and Home Depot have been able to sail through the same economic headwinds that Sears has been unable to successfully navigate this decade.
Sears has lost 96% of its value since it began trading under its current ticker in May 2003 while Lowe’s, Best Buy, and Home Depot have all seen share prices at least double in that time.
So, what have been some of Sears’ biggest problems?
I publicly talked about this nearly a decade ago:
The customer service in Sears was so bad the last time I visited, it would have been literally easier to go into one of their departments and steal something than to buy something.
This showed that Sears wasn’t compensating or training people to move product!
And if you don’t invest in your people, you’re not going to make sales.
When you’re able to roam the aisles trying on clothing, wandering from the men’s section to the kid’s section to the hardware section without even being acknowledged, it’s a problem.
But the fact that Sears is dying does not mean retail is dead.
Sears could have stopped some of this bleeding by taking 3 simple steps:
#1 Greet Customers
How many minutes does it take when you step into a Sears store before you are even acknowledged? (Never!)
Appoint a greeter who makes customers feel welcomed and directs them to the department they need. “Thanks for coming. What can I get you information on or what department can I direct you to?”
#2 Stop Making Customers Wait
When customers wait they become restless and unreliable. No customer who ventures out to a store using his or her time should have to wait for anything.
Make sure your sales process is fast and easy. Making customers wait in long lines to pay because you don’t want to pay more staff is the wrong move.
#3 Stop Ignoring Second Sales
Every product purchase creates an opportunity for another product sale. Wait until the first product is all but rung up and offer other products that would best support the first purchase.
“We have a scarf that would be perfect with that coat. Let me show you.” People are open to buying more to justify their first purchase. We have all done it before.
Sears completely ignored second sale opportunities, not to mention countless other opportunities.
These are just a few of the small things that Sears could have easily done to help turn things around, not to mention things like prospecting and follow-up. Too bad Sears never got on Cardone University!
While Sears is dead, retailers who make sales a priority and commit to properly training and motivating their staff have tremendous opportunity for growth in the years to come.
Training and growth, in fact, are the reasons I created 10X Growth Conference, a 3-day event designed for both big and small businesses to expand and increase revenue, no matter the economy and no matter the competition. It’s designed to make sure you’re business never goes the way Sears went.
Whether you have your own business or not, you ARE a business. You can increase your income right where you are and I want to show you how.
Consider joining me and 35,000 others at this 3-day mega event. See the special deals I have running that are very affordable, browse all the seating options available to you, and learn more about how the largest entrepreneur and business conference in the world can help you!
Be great,
GC
Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes named Mr. Cardone #1 of the “25 Marketing Influencers to Watch in 2017”. Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, CNBC, and Entrepreneur. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.
