Case Study
Sear: Seeking A More Fashionable Image
Cherry Anne Bilan-Lorenzo
Master of Business Administration
College of the Holy Spirit of Manila
Marketing Management
Dr. Lilia C. Chio
Sear: Seeking A More Fashionable Image
Summary:
Sears, Roebuck & Company became the nation’s largest retailer by making household names out of “hard goods” brands such as Craftsman Tools, Kenmore appliances, Weatherbeater paints, Road-Handler tires, and DieHard batteries. However, Sear’s preoccupation with hard goods has also hurt the retailer. During 1980s Sear’s merchandise operations lost market share steadily.
They hired Ms. Lee Hogan Cass to be its women’s fashion director, which was unusually because the position has been vacant for nine years. They decided to refill the position as part of its sweeping strategy designed to restore its stores to prominence.
One of the company’s earlier moves was to switch to a radical “everyday low pricing” strategy. They added national brands such as Panasonic and Whirlpool and revamped displays into what it calls “power formats”. Despite their attempt the result was a staggering net loss of $134 Million in the first 3 months of 1990 which became one of Sear’s worst quarters ever.
Statement of the problem:
Why would Sears, known for its hard goods, turn to women’s fashions as the latest vehicle in its attempted rescue operation?
How would you characterize Sear’s overall retail store strategy in terms of amount of service, product line sold, relative prices, control of outlets, and type of store cluster?
Facts:
The major reason why Sear is turning to women’s fashion as their latest vehicle in their attempt to rescue operation is because over the years, Sears has located more than 2/3 of its 850 stores in shopping malls. Also, most shoppers at these retail mini-cities are on a mission to do one thing which is to buy clothes. Apparel accounts for more than 70% of non-food sales in malls and because Sears cannot relocate 2/3 of its stores,
Cherry Anne Bilan-Lorenzo
Master of Business Administration
College of the Holy Spirit of Manila
Marketing Management
Dr. Lilia C. Chio
Sear: Seeking A More Fashionable Image
Summary:
Sears, Roebuck & Company became the nation’s largest retailer by making household names out of “hard goods” brands such as Craftsman Tools, Kenmore appliances, Weatherbeater paints, Road-Handler tires, and DieHard batteries. However, Sear’s preoccupation with hard goods has also hurt the retailer. During 1980s Sear’s merchandise operations lost market share steadily.
They hired Ms. Lee Hogan Cass to be its women’s fashion director, which was unusually because the position has been vacant for nine years. They decided to refill the position as part of its sweeping strategy designed to restore its stores to prominence.
One of the company’s earlier moves was to switch to a radical “everyday low pricing” strategy. They added national brands such as Panasonic and Whirlpool and revamped displays into what it calls “power formats”. Despite their attempt the result was a staggering net loss of $134 Million in the first 3 months of 1990 which became one of Sear’s worst quarters ever.
Statement of the problem:
Why would Sears, known for its hard goods, turn to women’s fashions as the latest vehicle in its attempted rescue operation?
How would you characterize Sear’s overall retail store strategy in terms of amount of service, product line sold, relative prices, control of outlets, and type of store cluster?
Facts:
The major reason why Sear is turning to women’s fashion as their latest vehicle in their attempt to rescue operation is because over the years, Sears has located more than 2/3 of its 850 stores in shopping malls. Also, most shoppers at these retail mini-cities are on a mission to do one thing which is to buy clothes. Apparel accounts for more than 70% of non-food sales in malls and because Sears cannot relocate 2/3 of its stores,