A crucial story currently in the media is the liquidation of Sears. One of the reasons that this event is so widely discussed is due to the fact that it is a clear representation of a shift in the way that we shop as a whole. Sears was founded 131 years ago, and up until recent years it has been a huge part of the way people shopped. I remember my mom taking me there as a child, because it had just about everything we needed in one spot. Now, you can find everything you need from your living room without getting off the couch, through e-commerce. In an article I read on the Vancouver Sun I learned that the CEO of the Hudson’s Bay Company, another department store, has recently left the company. This is making investors uncomfortable, by foreshadowing a future similar to Sears.
One point of difference that The Bay does have going for them, is that it markets to a slightly different niche than Sears did. They do still fit the department store description yet they tend to sell higher end clothes and accessories. Brands like Polo Ralph Lauren, Levi, Calvin Klein and Guess bring a higher price point and attract a customer base with more income. As a society we do still need brick a mortar companies as there are still people who don’t trust online shopping or are looking for a personal aspect. Customers like to talk to employees and receive help and recommendations when shopping. Along with this people also want to physically touch and try on the clothing that they are buying. Although we are not ready to become completely online, we are leaning much closer in that direction than ever before.
If The Bay wants to avoid becoming the next Sears, they are going to have to play to their points of difference by increasing the high-end brands to cater to an older and financially stable market. Since most online shopping is done by millennials who tend to have a lower income it decreases the e-commerce competition.
