It is always a thing of disappointment to see a big company like sears fall from being a onetime dominant retailer to bankruptcy. The reason for their downfall looks too apparent, and in this modern age, such situations will serve as a cautionary tale for every other business owner. If we are to talk deeply about sears, we will realize that the company may still partially exist primarily because of one single reason but has gotten off the hook for thousands of purposes, which is no other thing but bad decisions.
For a reasonable number of years, the department store of sears headed by one of its leaders suffered complacency. The right decision to help the company stay competitive in the market was not in place; in the process, other retailers were able to gain an advantage. Here are reasons that led to the complete downfall of sears, so we can avoid making such mistakes as a retailer.
Always evolve: despite that, the company dropped its once-ubiquitous catalog and set up a website, it still refused to grow. As every other retail market embraced the omnichannel model, the company was so reluctant to follow. When it eventually did, it ultimately resulted in a “Shop your way program,” and this is too late.
There is no shortcut to success but hard work: for a business to grow and survive in the market, the business owner must learn to cut expenses to make more profit. That is the secret of all successful companies you can find out there today. They always try to use the cut expenses strategy to revamp their entire store and expand in the process. In the case of sears, as they try to cut their costs, which are supposed to be an advantage to become stronger, they were losing money.
No company is unassailable: sometimes ago, things were going so smoothly for sears, and we could compare them with the likes of Amazon and eBay going bankrupt in this modern age. The reality is just that no company in the world can be significant and still not run down any day. In the case of sears, people’s shopping patterns and tastes changed; instead of them to follow people’s feelings and model, they made policies to make things worst. Economic conditions can make things change, but as a company, you need to follow the trend and prepare for the unexpected. Every business owner should always develop for complacency. A small crack that is not well managed or solved can eventually become big, and if repairs are not done at that embryonic stage, solving it will be very hard and almost uncontrollable.
Sears’s problem was not something they cannot avoid. The company had the chance to make changes that will benefit customers and put smiles on their faces so they will not see competitors as an alternative. Unfortunately, they did not make all these changes, and things went all wrong in the process. As a shopper in their store, you will begin to wonder why they allowed such things to happen to them. If they are tired of making money, why not sell the company instead of letting their gainfully employed workers go back to the street.