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Sears has another chance to avoid closing down

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Re: Sears has another chance to avoid closing down

#421
post #5

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.

The Chapters Indigo approach to this has just been pricematch Amazon online, and charge more for the same items in their retail stores.

Re: Sears has another chance to avoid closing down

#422
post #335

Earlier 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.

Yup -- I remember in college (in the early 2000s) how slow it could be for a bookstore to get a book in that a professor required for class (there was a book of poetry I literally could not find in the state of Georgia and my professor let me photocopy the work she had assigned until I could get my copy from Amazon b/c she recognized that I had literally called every single major and minor bookseller in Atlanta and the publisher and none could get me a delivery time ahead of Amazon, which was still going to be after our test) and by the time I graduated, most of us just reflexively went to Amazon rather than trying to fight over 6 copies Barnes & Noble or the college bookstores would manage to get in.

Re: Sears has another chance to avoid closing down

#424
Meanwhile, in an alternate universe...Sears saw the coming of the Internet, put revived their dormant catalog business and put it on the web gaining a first to market mover advantage over nascent on-line bookstore Amazon. Fast-forward to alternate 2019 and Sears is one of the largest internet companies on the planet after a painful early 2000s where they shed 70% of their brick and mortar retail presence in favor of a distribution center model to service their still growing on-line retail operations....

Sears 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

#425
post #96
post #5

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…

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…

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Re: Sears has another chance to avoid closing down

#426
post #411

Earlier 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…

I think amazon got to play by different rules though, it would be a very different thing for an established company like Sears to reinvest all of its profits into growing its digital platform in the 90s, 00s, or even now. There is no way investors would have stayed on for that ride.

Re: Sears has another chance to avoid closing down

#427

Where 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?

> Where is the SEC investigation into the CEO’s looting and plundering of the company?

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

#428

Many 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…

Got this hilarious text when accessing it from Tunisia :

Montgomery Ward

Montgomery Ward is based in the State of Wisconsin in the United States of America and operates solely in the United States. We do not market, sell, or deliver products outside the United States. This Website is for use only by persons located in the United States.

Montgomery Ward makes no claims that the Website or any of its content is accessible or appropriate outside of the United States. Access to the Website may not be legal by certain persons or in certain countries.

If you have any questions, please contact Customer Service at 1-888-777-6333.

Re: Sears has another chance to avoid closing down

#429
post #227
post #96

Earlier 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…

[deleted]

Re: Sears has another chance to avoid closing down

#430

Earlier 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.

Yup -- and some (Borders) made the strategic mistake to literally just use Amazon. When Borders finally broke off the relationship, not only was it too late [1], it was at literally the worst possible time it could have done it, from a business perspective -- given the financial crisis.

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

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