Sears had everything. Global supply chain, check. Top notch distribution operation, check. System and infrastructure to take orders and handling billing, check. Name recognition and established customer base, check. They threw it all away, ending catalog operations in 1993 a year before Amazon.com opened in 1994. They owned part of Prodigy in 1984! Yet somehow thought it was a better move to expand into bigger box re…
Sears would never have been able to compete with Amazon on prices because Sears needed to fund operations for a large number of retail stores and Amazon did not.
Sears has another chance to avoid closing down
421–430 of 568 posts
Re: Sears has another chance to avoid closing down
#422Earlier quoted context omitted.
The pricing benefit really cannot be understated. Amazon was 40% less than list for books -- which was a massive amount, even if you lived in Barnes & Noble markets (and B&N wasn't as pervasive in 1996/1997 as your average mall bookstore was), where there were similar markdowns. And of course, you could get any book you wanted from Amazon. And then Amazon very quickly moved into media like CDs and DVDs. I used to ord…
>Amazon was 40% less than list for books Furthermore, it's easy to forget just how hard it could be to track down even an in-print book and how long it could take to actually get your hands on it. Some big city bookstores were better but, in many cases, (assuming the bookstore would special order books at all), it would basically be put into the next batch order from a publisher which might be a month or two.
Re: Sears has another chance to avoid closing down
#423Re: Sears has another chance to avoid closing down
#424Sears Airlines, once just a rapid cargo mover for the company starting offering bottom rate global flights for passengers...which gives them another venue to push their catalog...in flight sales.
Sears Shows, ready to launch in Q3 2019 is expected to be the second largest on-line Television and Movie delivery network on the planet with many shows featuring Sears exclusive brands in them.
Sears Craftman brand, already the largest 3d Printer manufacturer, starts offering educational discounts to middle and high school students.
SearsNet, once a staple of 80s and early 90s era stores, revived like the catalog and rebranded from the Prodigy online service, starts to finally offer a new service called "Computers in a Cloud" where consumers can rent computers over the internet and run arbitrary programs on them. This is leveraging spare capacity in Sears' service oriented computing investments, often housed in old Sears warehouses and properties that were no longer useful as retail spaces, but could be reconfigured as compute hosting centers.
Highly anticipated, next year's unveiling of the Sears Car, built using Craftsman tools and easy to drive. It promises to combine the latest in electrical vehicle technology with the comfort of corinthian leather.
Re: Sears has another chance to avoid closing down
#425Sears had everything. Global supply chain, check. Top notch distribution operation, check. System and infrastructure to take orders and handling billing, check. Name recognition and established customer base, check. They threw it all away, ending catalog operations in 1993 a year before Amazon.com opened in 1994. They owned part of Prodigy in 1984! Yet somehow thought it was a better move to expand into bigger box re…
I thought this as well until I heard a counter-point [0] which was very convincing. The reason Amazon is successful is not because you can shop online (from a catalog) and receive items in the mail. The reason Amazon is successful is because you can do those things and receive your items within two days. Before Prime existed, Amazon had very quick fulfillment, and after Prime two-day it became even better. The Sears…
Re: Sears has another chance to avoid closing down
#426Earlier quoted context omitted.
To be fair, in '98 there weren't many people with big corporate web store experience who were also experienced enough in retail to trust with a big corporate retail operation.
Truth. I think that might be a reason why none of the retail incumbents, not even the ones with a by-mail background, did well. If you were an upstart, by-mail-only internet company, you didn't need to know how to run a bricks-and-mortar retail chain (of large size). It is probably relevant to consider Amazon's (limited) forays into bricks-and-mortar establishments. They have had about as much impact as the online ve…
Re: Sears has another chance to avoid closing down
#427Where is the SEC investigation into the CEO’s looting and plundering of the company? Why have they allowed the CEO to also be the company’s biggest creditor? Too busy with Elon’s tweets?
Is that even a violation of anything within the SECs purview, if all the reporting is in order so that the stockholders have the information about what is going on?
Re: Sears has another chance to avoid closing down
#428Many such businesses have sunk into oblivion in the past century. They were started by hungry go-getters; their well-oiled machinery was handed to much-less hungry people who made poor choices in the face of heavier competition. The story of Sears vs. Ward ("By the end of the 1930s, Montgomery Ward had become the country's largest retailer") is full of insights. (I was surprised to learn today that 'Wards' is still a…
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Re: Sears has another chance to avoid closing down
#429Earlier quoted context omitted.
I thought this as well until I heard a counter-point [0] which was very convincing. The reason Amazon is successful is not because you can shop online (from a catalog) and receive items in the mail. The reason Amazon is successful is because you can do those things and receive your items within two days. Before Prime existed, Amazon had very quick fulfillment, and after Prime two-day it became even better. The Sears…
There was a significant gap between Amazon launch and having two-day shipping — it took years of behind the scenes development before orders started arriving notably faster than other retails. Sears' numbers include regular postal delivery in both directions so switching to online ordering would have cut them in half with no other changes (and don't forget the efficiency wins from orders arriving as validated electro…
Re: Sears has another chance to avoid closing down
#430Earlier quoted context omitted.
I don't remember that big of a price advantage, but they definitely had a HUGE selection advantage compared to the book stores in my city. To a certain extent the price didn't matter much because it was the only way to buy a lot of books.
Yeah a brick and mortar book store could never compete with an online retailer warehouse when it comes to selection. Eventually book stores started to create their own websites but by then it was too little too late.
Toys R Us did this too and as a result, never built a really solid e-commerce strategy. In fact, when Toys R Us left Amazon in 2006 (after years of litigation to get out of the contract) [2], it had the unenviable position of being behind from a tech perspective in a massive way. Not only that, the experience was considerably worse than it had been under Amazon.
[1]: http://www.internetnews.com/ec-news/article.php/3749336/Bord... [2]: https://www.wsj.com/articles/SB113798030922653260