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Sears

In: Business and Management

Submitted By velimak
Words 2118
Pages 9
Sears Canada is a retailer based in Toronto, ON, with its parent company Sears Roebuck situated in Chicago, IL. The two companies operate independent of each other; however more or less carry the same product lines.
Sears Canada primarily has two major merchandising categories, with Home & Hardlines accounting for 60% of the sales while apparel & accessories represent 40% of the sales. Sears has been in the retail industry in Canada for over 60 years, and has built a significant brand name for itself, although many consider it an outdated brand name now in terms of apparel. As such, in light of drastic changes recently in the apparel industry given the influx of American and international apparel companies and the constant improvement of existing rivals, the competitive landscape of the retail apparel industry has become a fight in which Sears Canada cannot win.
Sears must make a move out of the apparel industry and focus its resources on its successful home and hardware line. Sears has 3 great brands in this industry it can build around, Kenmore, Craftsman and Diehard. The opportunity for Sears to become a niche player in this segment is there for the taking, and represents a far brighter future for the company as opposed to keeping the status quo and allocating half its resources to a floundering apparel offering.

Sears Canada is at a pinnacle point in its existence, as profits and sales have slide since 2006, and its market share in the apparel sector is decreasing significantly. While Sears has tried in vain recently to win back customers and show investors there is some strategic drive left, the future does not look bright if it remains status quo and makes no change in organizational direction. The retail industry is a highly competitive industry, and as Sears new CEO Calvin Macdonald put it, “Retail is tough, but we are focused on what we can...

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