Last week, Sears all but admitted that it was looking to cast off the little that remains of its identity with the possible sell-off of its signature house brands Kenmore, DieHard, and Craftsman. What the heck happened to this once-great pillar of American retail? A number of industry insiders have their theories, and they aren’t pulling punches.
Bloomberg Businessweek has a story on the sad state of Sears, and reading through some of the statements from retail industry-watchers is almost as cringe-inducing as a Friar’s Club roast.
You should check out the whole Bloomberg story, but here are a few choice cuts from the acid-tongued analysts.
1. On Sears’ dwindling importance:
“They stood like a colossus on top of the American retail market—bigger than the next four companies combined… Now they’re a 98-pound weakling.” — Craig Johnson, president of Customer Growth Partners.
2. On Sears’ move away from its blue-collar customer base:
“They wanted a better customer… Frequently, when retail goes off the rails, it has to do with not liking the shopper you have.” — Candace Corlett, president of WSL Strategic Retail.
3. On the often-baffling behavior of Sears Holdings CEO/Chairman/biggest investor Eddie Lampert:
“The presumption when he bought it was that he was buying it for the real estate… I don’t think anyone but Eddie Lampert thought he was going to be a successful merchant.” — WSL’s Corlett.
4 & 5. On Sears’ misguided efforts to cut costs at the expense of the shopping experience:
“The stores degraded at a pretty fast pace… It exacerbated the broader issues Sears and Kmart had with relevance right out of the gate.” — Matt McGinley, analyst at Evercore ISI.
“Leaner, meaner, but with no reason to walk through the door… They don’t have any reason for being anymore. They’re totally redundant.” — WSL’s Corlett.
by Chris Morran via Consumerist
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