Financial Fine

The Short Story on Sears and Blockbuster

Having just resigned from Sears I do no understand how no one saw this coming. Sales are slow all around, I understand, but Sears does not attract the customers that are shopping.
Sears has done away with its catalog business except during the holidays. Along with the tossing out of the catalog and catalog department Sears also ostracized it's most dedicated customer base, the elderly. Adults unfamiliar with the Internet can no longer order items to their homes by simply calling a hotline or visiting the catalog department. Many customers over 50 have had Sears cards for 30 plus years but are unable or unwilling to shop on the net. Furthermore, due to space constraints inside the brick and mortar store many items are only available on - line. If the non-computer savvy customer does not see it on the shelf the simply do not buy it.
Sears floor plan usually employs two stories with most of the square footage dedicated to the soft line business. This business is where Sears sees the most markdowns, which kills their bottom line. One fatal flaw of the Sears floor plan is that the appliance department usually resides upstairs. Many customers, by their own admission, do not realize that their neighborhood Sears carries appliances.
Sears' lack of initiate or funds to remodel old stores when other businesses have employed attractive eye-catching exteriors and trendy interiors has further deteriorated sales by not attracting the 18 - 36 year old shoppers. Sears sometimes uses it's own employees to conduct full store resets, and refreshes instead of hiring outside contractors. These takes the associates focus away from the customer.
Without the mergers and acquisitions of the recent years one can now see Sears for what it is. The past quarters have been inundated with padding of the earnings sheet through avenues other than store sales.
Again, I say, "What is the surprised look all about." Sears will stay afloat only until their cash on hand dwindles.