Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

Sears Where America Shops, Well Sort Of

Here is a perspective for you.  Sears bought Lands End in 2002 for $1.86 B, about the same price Google just paid for You Tube.  Is You Tube worth as much as a known brand that has been around since the early 1960s?  I don’t know but….why hasn’t Sears done something with it?

Ed Lampert has cut costs at Sears Holdings SHLD but hey you gotta get sales up.  The answer is a Store with in a Store concept that will highlight Lands End.  Well, like the WMT example below, will folks go into a K Mart Sears in search of higher end expectations? I doubt Sears has even come close to recovering its $1.86B purchase price, will this work?  Are you headed to Sears, er Lands End?

DLE

Posted in

3 responses to “Sears Where America Shops, Well Sort Of”

  1. Chevy Norwood Avatar
    Chevy Norwood

    I personally do not like shopping at Sears. I would buy a washer/dryer or a refrigerator from Sears, but I would never buy clothing or household items. I personally do not think that Lands End was worth over a billion dollars, but who am I to say! Lands End apparel isn’t appealing at all, it is geared towards older people and people who frequent outdoor activites. Sears needs a major makeover to compete with the large department stores. Maybe Sears can hire a hip, new designer to create trendy clothing to attract teenagers and young adults! Just a thought. I can not recall the last time I have visited Sears…I will leave that to my grandmother!! (Smile)

    Like

    Reply
  2. Dennis Elam Avatar
    Dennis Elam

    One thing about shopping, perception is everything. I mused that Sears had waited too long to do something, this points up what Deming says about customers, they switch, and once they do it is hard to get them back. I look forward to a more clear definition of ‘older people’…

    Like

    Reply
  3. Pam Joyce Avatar
    Pam Joyce

    When I think of Sears, I think of tools, washers, dryers, etc. I would rather purchase clothing online from Lands’ End than go into a Sears store to purchase clothing. The store in a store concept does not really work for me. I am more affected by the cleanliness and appearence of the store. I don’t really think that Sears has really put 100% into marketing the Lands’ End clothing line. It is the whole package that a store presents that brings in customers.
    Walmart is known for bargain prices. With the high ceilings and the simple dressing rooms, Walmart does not entice me to look for clothing.
    I think that building an image is everything. It all goes back to design and what the customer prefers. Both Walmart and Sears shared their time in carrying lower quality clothing. It was part of the image that they built. Now, they will have to spend quite a bit of money to rebuild their image.

    Like

    Reply

Leave a reply to Chevy Norwood Cancel reply