Marketing analysis, opinion, and links by Marian Burk Wood, author of Pearson Education's "The Marketing Plan Handbook."
Showing posts with label Sears. Show all posts
Showing posts with label Sears. Show all posts
Tuesday, August 22, 2017
Browse Marketing History via the Wayback Machine
What did some major marketing brands look like on the web 5, 10, or even 20 years ago? You can find out by checking the Internet Archive's Wayback Machine.
Not only is this a good way to see the evolution of web design, you can also follow along as logos change, brand ownership changes, and offerings change.
At top, how the Wayback Machine shows the number and timing of Sears.com web pages captured and saved since January, 1997 to today.
At right, the Sears "about us" page in 1997. This is obviously before the acquisition by Kmart was announced in 2004 and completed in 2005. The brand's logo is prominent along the header and navigation is along the bottom as well as via links embedded in the body copy.
At left, the "overview" page from the corporate page of Sears Holdings, which owns Sears and Kmart today. Navigation is along the side and along the bottom (not shown in this capture).
There is a link to the Sears Archives, where the distinctive blue-and-white logo is prominent at top left of web page. Check this page for the history of the venerable Sears, Roeback & Company, a true pioneer of legacy retailing.
Sunday, January 8, 2017
More Legacy Retail Woes
Legacy retailing (aka brick-and-mortar stores) continues to have difficulty meeting the challenges of online shopping.
The Limited--one of the original mall-based women's specialty chains--has just closed its 250 stores from coast to coast and will sell online only. Founded more than 50 years ago, the Limited at one time had hundreds of mall stores and was hugely popular, but that was before the Internet. The retailer's private equity owner said in a statement: "In an increasingly challenging environment for mall-based retail and women's apparel, we are very disappointed that the company has had to make the difficult decision to close its retail locations."
Sears also made an announcement this week: It's selling the well-known Craftsman brand to competitor Stanley Black & Decker. Sears was one of the pioneers of catalog shopping in the 19th century, and Craftsman is one of the three brand jewels in its crown (along with Kenmore and Diehard). Selling a crown jewel to raise money will likely only postpone the inevitable. Sears has been trying for years to strategize its way out of an expensive legacy retailing situation. Sears is closing yet more stores, having already agreed to rent parts of open stores to other retailers (like Primark).
Macy's announced that it's laying off 10,000 workers and closing 100 stores after a worse-than-anticipated holiday season. The company stated that the stores being closed were "unproductive or are no longer robust shopping destinations because of changes in the local retail shopping landscape."
What is the future of legacy retailing in a world where consumer behavior is evolving along with technology? More posts on that topic soon.
The Limited--one of the original mall-based women's specialty chains--has just closed its 250 stores from coast to coast and will sell online only. Founded more than 50 years ago, the Limited at one time had hundreds of mall stores and was hugely popular, but that was before the Internet. The retailer's private equity owner said in a statement: "In an increasingly challenging environment for mall-based retail and women's apparel, we are very disappointed that the company has had to make the difficult decision to close its retail locations."
Sears also made an announcement this week: It's selling the well-known Craftsman brand to competitor Stanley Black & Decker. Sears was one of the pioneers of catalog shopping in the 19th century, and Craftsman is one of the three brand jewels in its crown (along with Kenmore and Diehard). Selling a crown jewel to raise money will likely only postpone the inevitable. Sears has been trying for years to strategize its way out of an expensive legacy retailing situation. Sears is closing yet more stores, having already agreed to rent parts of open stores to other retailers (like Primark).
Macy's announced that it's laying off 10,000 workers and closing 100 stores after a worse-than-anticipated holiday season. The company stated that the stores being closed were "unproductive or are no longer robust shopping destinations because of changes in the local retail shopping landscape."
What is the future of legacy retailing in a world where consumer behavior is evolving along with technology? More posts on that topic soon.
Friday, June 3, 2016
Are Department Stores Dinosaurs?
The uncertain future of department stores has been discussed for more than 30 years, with the rise of specialty stores, consumer preference for lifestyle shopping centers instead of enclosed malls, and--of course--online shopping.
During the 1980s and 1990s, department stores and mass merchandisers were making significant changes behind the scenes. Point-of-sale terminals replaced cash registers, and personal computers brought data analysis to management's fingertips. Managers could see hourly sales trends instead of waiting for end-of-month numbers.
In those days, department stores like Saks and Sears still offered private-label credit cards, which in turn allowed them to see who bought what and how often. Credit was frequently a source of profits, not just an engine for supporting sales increases. (Today, nearly all store cards are operated by non-retailers). Remember, Sears founded the Discover card, using its expertise in the credit industry. Here's a case study about Sears that offers clues to some of the retail challenges of the time. And here's a quick look at how Sears evolved over the years.
The question of whether department stores are dinosaurs bound for extinction is still being asked. A real estate analysis firm recently estimated that department stores would need to shutter hundreds of branches to return to the sales-per-square-foot productivity levels of 2006. That translates into a sea of empty anchor stores all over the country. Malls are trying to update the shopping experience to bring consumers back, to go to the movies or for specialty stores that are especially in demand.
In a world where promotional pricing attracts shopper attention, department stores are joining in, and that's making waves for high-end brands. Michael Kors is going to limit the number of products it sells to department stores to avoid having its lux image affected by promo pricing.
Department stores are also making some other adjustments. Macy's is closing a few dozen stores, and Sears/Kmart is closing some stores as well. Macy's has begun rolling out "Backstage" off-price stores within stores to utilize space and attract price-conscious shoppers who might otherwise go elsewhere. Sears is leasing some of its space to other stores, such as Primark.
It's still too early to deem department stores dinosaurs.
During the 1980s and 1990s, department stores and mass merchandisers were making significant changes behind the scenes. Point-of-sale terminals replaced cash registers, and personal computers brought data analysis to management's fingertips. Managers could see hourly sales trends instead of waiting for end-of-month numbers.
In those days, department stores like Saks and Sears still offered private-label credit cards, which in turn allowed them to see who bought what and how often. Credit was frequently a source of profits, not just an engine for supporting sales increases. (Today, nearly all store cards are operated by non-retailers). Remember, Sears founded the Discover card, using its expertise in the credit industry. Here's a case study about Sears that offers clues to some of the retail challenges of the time. And here's a quick look at how Sears evolved over the years.
The question of whether department stores are dinosaurs bound for extinction is still being asked. A real estate analysis firm recently estimated that department stores would need to shutter hundreds of branches to return to the sales-per-square-foot productivity levels of 2006. That translates into a sea of empty anchor stores all over the country. Malls are trying to update the shopping experience to bring consumers back, to go to the movies or for specialty stores that are especially in demand.
In a world where promotional pricing attracts shopper attention, department stores are joining in, and that's making waves for high-end brands. Michael Kors is going to limit the number of products it sells to department stores to avoid having its lux image affected by promo pricing.
Department stores are also making some other adjustments. Macy's is closing a few dozen stores, and Sears/Kmart is closing some stores as well. Macy's has begun rolling out "Backstage" off-price stores within stores to utilize space and attract price-conscious shoppers who might otherwise go elsewhere. Sears is leasing some of its space to other stores, such as Primark.
It's still too early to deem department stores dinosaurs.
Monday, April 30, 2012
Can Sears Survive?
A recent Crain's Chicago Business headline is a stark reminder that no marketing success lasts forever. "Sears -- Where America Shopped" uses the past tense because so many people have turned to other stores and online retailers rather than buying from Sears or Kmart or their sites.
Sears catalogs were once direct-mail powerhouses, reaching into millions of U.S. households with much-needed merchandise variety and reasonable prices. Sears was a proven anchor in shopping centers coast to coast, and its credit card was in wallets all over America. Those glory days are gone.
In an effort to cut costs, Sears has begun closing dozens of "underperforming" stores, leaving places like Anderson, Indiana and Jackson, Mississippi after decades in business. This is understandable, given the difficulty of turning these stores around while the economy isn't yet strong AND the intense competition from discounters and specialty stores with profit-sapping price wars on some popular items.
Now Sears is trying to license the core brands for which it is so well known: Craftsman, DieHard, and Kenmore. If this happens, it's likely that the essence of those brands will be diluted. Will consumers still know what the brands stand for? Will they believe that licensed products have the same quality as the original brands? Will the brands keep a quality halo over Sears itself once they begin appearing on non-Sears products?
To raise money, Sears is also said to be trying to sell its Lands' End unit, which might mean the end of Lands' End boutiques inside Sears stores. Meanwhile, a new Scrubology boutique (above) is gaining ground within Sears stores. Will it help Sears attract a new generation of shoppers--before the retailer has to close hundreds more stores?
Sears catalogs were once direct-mail powerhouses, reaching into millions of U.S. households with much-needed merchandise variety and reasonable prices. Sears was a proven anchor in shopping centers coast to coast, and its credit card was in wallets all over America. Those glory days are gone.
In an effort to cut costs, Sears has begun closing dozens of "underperforming" stores, leaving places like Anderson, Indiana and Jackson, Mississippi after decades in business. This is understandable, given the difficulty of turning these stores around while the economy isn't yet strong AND the intense competition from discounters and specialty stores with profit-sapping price wars on some popular items.
Now Sears is trying to license the core brands for which it is so well known: Craftsman, DieHard, and Kenmore. If this happens, it's likely that the essence of those brands will be diluted. Will consumers still know what the brands stand for? Will they believe that licensed products have the same quality as the original brands? Will the brands keep a quality halo over Sears itself once they begin appearing on non-Sears products?
To raise money, Sears is also said to be trying to sell its Lands' End unit, which might mean the end of Lands' End boutiques inside Sears stores. Meanwhile, a new Scrubology boutique (above) is gaining ground within Sears stores. Will it help Sears attract a new generation of shoppers--before the retailer has to close hundreds more stores?
Thursday, September 9, 2010
Retailers Test Christmas Club Savings Cards
Remember Christmas Club savings accounts? You'd get a book with weekly tickets to have punched, stamped, or removed as you deposited into the club account at a local savings bank (saving 50 cents or $1 or even $10 per week). Then in late October or early November, the bank would mail you a check or allow you to bring the completed account book in to withdraw your savings to spend on holiday stuff.
Now this old idea is back in a new way, thanks to retailers like Sears and Toys 'R' Us, which are both inviting shoppers to load a debit card as a "holiday savings card" and receive a 3% bonus on their money. Although the 3% is considerably more than most banks are paying on savings accounts these days, customers have to spend the entire debit card amount at the one chain. In other words, any customer who loads a Sears debit card for the holidays gets a 3% bonus but can use this card to pay for purchases only at Sears.
Toys 'R' Us is trying this for the first time in 2010, following in the footsteps of Sears, which debuted its holiday savings card in 2009 in Sears and Kmart. Money cannot be added to a Toys 'R' Us club card online, although the card can be used for online purchases.
The Sears club card, available in stores and online, has no fees and no expiration date, nor can it be used to pay a Sears credit account or buy a debit card.
Will budget-conscious consumers embrace this old idea in its new form?
Now this old idea is back in a new way, thanks to retailers like Sears and Toys 'R' Us, which are both inviting shoppers to load a debit card as a "holiday savings card" and receive a 3% bonus on their money. Although the 3% is considerably more than most banks are paying on savings accounts these days, customers have to spend the entire debit card amount at the one chain. In other words, any customer who loads a Sears debit card for the holidays gets a 3% bonus but can use this card to pay for purchases only at Sears.
Toys 'R' Us is trying this for the first time in 2010, following in the footsteps of Sears, which debuted its holiday savings card in 2009 in Sears and Kmart. Money cannot be added to a Toys 'R' Us club card online, although the card can be used for online purchases.
The Sears club card, available in stores and online, has no fees and no expiration date, nor can it be used to pay a Sears credit account or buy a debit card.
Will budget-conscious consumers embrace this old idea in its new form?




