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Ch.10-Sears Changes Again and Again

Ch.10-Sears Changes Again and Again

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Published by Vina Christian

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Published by: Vina Christian on Oct 14, 2010
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10/14/2010

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Sears Changes Again and Again

Frenky Vina Maya Rahmat Fuad

. ‡ 1998 . ‡ 2005 . ‡ 1945 Sears sales exceed $1 billion.The merger of Kmart and Sears as Sears Holdings Corporation. . Banker & Company. ‡ 2000 Sears appoints Alan Lacy as Chairman of the Board and Chief Executive Officer. ‡ 1927 Sears launches the Craftsman® and Kenmore® brands. opening its first store in Denver.The Great Indoors debuts. ‡ 1981 Sears acquires Dean Witter Reynolds Organization and Coldwell. Minn. . Martinez as Chairman of the Board and Chief Executive Officer.Sears launches Wishbook. ‡ 1893 Corporate name becomes Sears. followed affirmative shareholder votes of both companies ‡ 2006 Craftsman tools now sold at K-Mart.Sears announced the launch of the company's newest off-mall format Sears Essentials. ‡ 1973 Sears moves its national headquarters to Sears Tower.com. ‡ 1995 Sears appoints Arthur C.History ‡ 1886 Richard Sears starts selling watches to supplement his income as station agent at North Redwood. ‡ 1896 First large general catalogue. Roebuck and Co.

to become its new CEO ± Albert Martinez .Beginning of change ‡ Losing billions of dollars in the early 1990s ‡ . Sears selected an outsider.Falling sales at its stores ‡ . for the first time in its history.The acquisitions of financial services bussnies had not proved to be profitable ‡ Searching for a new strategy.

Flattening the company¶s huge bureaucracy .Albert Martinez ‡ ‡ ‡ Change Strategy & Structure Strategy He decided to ± Sell all Sears financial services busniess ± Focusing on its core department store busniess ± Closed the famous Sears catalogue ± Crafted a new look for Sears store ± Sears should be moderate price department store chain. focusing on the ³middle-American mom´ ± Flood the store¶s with women¶s apparel ³The Softer Side of Sears ³ advertising themes.Cutting 5000 employees .Selling its landmark building in Chigago . Structure .

Impact ‡ ‡ ‡ Within three years losses of billions changed into profit of hundreds of millions Female customers returned The situation changed .Alan Lacy Sears Financial officer became CEO .In 2000 Martinez Stepped down as CEO .Customers didn¶t return -Stores like Target and Wal-Mart stole its customers -Throughout the 1990s.Sears ³softer-side´ marketing did not work for long .Sears adult clothing described as ³fashion misses´ . sales grew only at 4% .

The Great Indoors. it has one the largest repair services fleets in the US . car batteries. should be expanded ± Focus and develop an online bussnies ± In 2002 buying Land¶s End ‡ Huge online and catalogue clothes retailer. and power tools ‡ He decided to ± The main emphasis of Sears should be selling hardgood retail products ± Sears new store . to expand its online presence ‡ Sears advantages ± Has 12.Alan Lacy ‡ He championed Sear¶s ³hard side´appliances.000 technicians.

‡ The SHC corporate strategy focuses ‡ intensely on plant and expansion issues ‡ Sears¶ culture is more innovative than Kmart¶s.K-mart & Sears ‡ The merger announced in 2005. ³Sears Holdings Company´ (SHC) ± to reposition themselves in response to competition in the retail environment ‡ The merged firm must take advantages of synergies of combining various products. economies of scale for producing more of the same thing. and economies of scope for producing more of different things ³ crossselling´. .

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