Introduction:
Sears Canada, one of the largest retail companies in Canada, has received the permission from the Ontario Superior Court to proceed with its liquidation. Sears Canada has announced that all of its 130 remaining stores across Canada, which includes 74 Sears stores, eight Sears Home stores, and 49 Sears Hometown stores, will be closed soon. As a result of Sears Canada’s failure, 12000 people will become unemployed
Insight: Why Sears Canada failed?
Reason #1: Clarity
What is Sears? What does Sears actually sell?
When I first walked into a Sears store in 2014, I have felt a sense of inclarity. I saw all sorts of merchandise in Sears; they do not only sell fashion product, bedding, furniture and kitchen appliances, they also sell outdoor tools and kids product. Sears left me with an impression of a brand that only focuses on quantity but quality. Sears does not have a clear value proposition that distinguishes it from others. When we think of buying electronics, we think of Best Buy; when we think of home appliances; we think of Home Depot. What leads us to think of Sears? Apparently, nothing.
Reason #2: Customer Experience
Inside Sears, the shopping experience is boring and unsatisfied. I barely saw Sears’ employees assisting customers in making their choices. “They schedule a furniture delivery then don’t deliver”(2017, T) said Rebecca, an unsatisfied customer. When Sears does not meet the commitment, it is losing its customer loyalty and trust.
Reason #3: Competition vs The “Lack of s”
Free market teaches us mechanism for selecting the superior and eliminating the inferior. People are talking about that e-commerce killed Sears. In fact, what truly killed Sears is itself: the lack of innovation, creativity and management. Before Amazon, Sears was the first company to approach e-commerce in 1998, but it soon lacked in innovation in doing so. Creative product designs arise every day from small businesses; it has been so many years that we have not been heard of any creative move from Sears. The C.E.O of Sears was changed for three times in the last few years. However, each of them has failed to reconstruct the company.
Reflection:
First, according to the principle of Business Model Canvas, the first step in establishing a successful business is to have a clear, specific value proposition.
Second, a successful business always places the customer experience in the first place; a business should always be aware of the message they delivered through their products and services.
Third, to succeed in the market in the long run, a business should be innovated and creative. The business world is moving forward at a rapid pace; anything that falls behind will be abandoned.
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Citations:
Press, T. C. (2017, October 13). Small cities and their malls brace for pending Sears store closures. Retrieved October 14, 2017, from http://www.cbc.ca/news/business/sears-closures-impact-small-communities-1.4353011
Sears Canada Inc. (n.d.). Retrieved October 14, 2017, from https://www.bbb.org/kitchener/business-reviews/department-stores/sears-canada-in-toronto-on-17067/reviews-and-complaints
Slip on this style Optez pour ce style. (n.d.). Retrieved October 14, 2017, from https://www.sears.ca/
(2017, March 23). Retrieved October 14, 2017, from https://www.youtube.com/watch?v=Ix4egLflHVw
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