Topic > Sears Case Study - 663

Sears is a staple of American retail and has demonstrated over the years that it has the ability to evolve with the changing retail landscape. But over the past 20 years their public reputation, along with sales, assets and corporate diversification, have all declined. The Sears name still carries weight in today's market, but the company risks disappearing if something isn't done soon. In 1888 Sears, Roebuck and Co. launched their first magazine, with a target market of farm families without access to department stores. By 1895 the Sears magazine had grown to 532 pages, selling items such as sewing machines, bicycles, sporting goods, and even automobiles, and was producing $750,000 in sales per year. But this was only the turning point for the company: by 1907, under the leadership of vice president and treasurer Julius Rosenwald, the company had grown to $50,000,000 in annual sales. In 1895 Rosenwald and his half-brother, Aaron Nusbam, purchased 50% of Sears for just $150,000 (acquiring Roebuck) and in 1903 25% of Nusbam was purchased for $1,300,000, a stock growth of 1733%. From 1906 to 1940 Sears Magazine had become America's leading home improvement magazine, was often called "the consumer's Bible," and was now selling whimsical items such as kit houses. In the 1920s Sears began its brick-and-mortar stores, built on the principle of urban homes having more capital to spend on household goods. This expansion quickly led to the creation of suburban markets with shops and even the development of shopping centers. In many ways Sears was the company to imitate in American sales and was even creating subsidiaries to allow for faster growth, such as the Homart Development Company, which built shopping centers across America. .....ct and points of sale that have satisfied the needs of their customers. But a clear shift occurred and instead of being a trendsetting innovator in the retail industry, they decided to do what everyone else was doing. By disrupting product innovation and resource diversification, they entered into a price and service war with other retailers and were never able to diversify into either category. Walmart currently dominates the retail industry as a low-cost leader, and companies like Nordstrom have been able to establish themselves as service leaders, but Sears continues to sit in the middle without a true unique selling position. For Sears to survive another hundred years, if not just ten, it must return to its original sales and service focus, offering new and innovative products to its customers in the most cost-effective way possible..