History: SEARS, founded in 1886 in Chicago by Richard Warren Sears and Alvah Curtis Roebuck is headquartered in Hoffman Estates, Illinois. Sears was a primary seller of appliances, hardware and clothing. In 1925, it started as mail order Catalog Company and then they started opening retail stores. It was then bought by the discount store chain Kmart in 2005.
Current Situation (last few years):
The stock prices has dropped drastically within the last few years
Chairman, Edward S. Lampert scrutinised for raising prices, cutting costs, mismanagement of merger with Kmart
Marketing budgets have been reduced
Continuos drop in sales
Failure of Sears Grand strategy (strategy for competing with small malls)
Martha Stewart (a seller of home products …show more content…
The companies that supply Sears with TVs, clothing are concerned about its ability to pay back its bills and some of these suppliers are cutting back on shipments. Which in simple words means that Sears is receiving less merchandise to sell. Due to continuously declining sales from the past few years it is reducing its physical footprint by closing its stores but if the suppliers cut down on shipments then all these efforts of Sears will go in …show more content…
This shift of focus gave its competitors to take up its market share.
In 2006, it made its second mistake by restructuring itself into several small units.
Third mistake was to sell brands like Lands End and many company stores .
The fourth mistake was the way it treated its employees. They were under constant threat of being fired because of the unrealistic goals the company had set.
Another major mistake was that it ignored its competitors and felt that it was invincible which led to its downfall.
Shifting focus from retail to real estate led to failure of Sears in understanding customer needs and losing out on customers. When it restructured, the units were headed by unexperinced retailers which further led to losing customers. It didn't realise that customers were moving away and ignorance of competitor's customer retention and attraction techniques further led to its downfall. Sears is iteself responsible for its plight.
New Marketing Strategies:
Should reach consumers on personal level to rebuild relations
Extensive promotions (Coupons, discounts etc.) advertisement (TV, radio, print, social
Current Situation (last few years):
The stock prices has dropped drastically within the last few years
Chairman, Edward S. Lampert scrutinised for raising prices, cutting costs, mismanagement of merger with Kmart
Marketing budgets have been reduced
Continuos drop in sales
Failure of Sears Grand strategy (strategy for competing with small malls)
Martha Stewart (a seller of home products …show more content…
The companies that supply Sears with TVs, clothing are concerned about its ability to pay back its bills and some of these suppliers are cutting back on shipments. Which in simple words means that Sears is receiving less merchandise to sell. Due to continuously declining sales from the past few years it is reducing its physical footprint by closing its stores but if the suppliers cut down on shipments then all these efforts of Sears will go in …show more content…
This shift of focus gave its competitors to take up its market share.
In 2006, it made its second mistake by restructuring itself into several small units.
Third mistake was to sell brands like Lands End and many company stores .
The fourth mistake was the way it treated its employees. They were under constant threat of being fired because of the unrealistic goals the company had set.
Another major mistake was that it ignored its competitors and felt that it was invincible which led to its downfall.
Shifting focus from retail to real estate led to failure of Sears in understanding customer needs and losing out on customers. When it restructured, the units were headed by unexperinced retailers which further led to losing customers. It didn't realise that customers were moving away and ignorance of competitor's customer retention and attraction techniques further led to its downfall. Sears is iteself responsible for its plight.
New Marketing Strategies:
Should reach consumers on personal level to rebuild relations
Extensive promotions (Coupons, discounts etc.) advertisement (TV, radio, print, social