Actualizado: 28 jun 2020
Sears with 125 years experience in retail, was an american dream icon in the 80's, but today October 16, 2018 , the bankrupcy is coming.
The first battles against Walmart, Target and other supermarket in the 90's, then was subprime crisis in 2008 and finally, the digital age with Amazon, are the main couses in the financials Sears nigthmare.
Sears, will become the new case of failure for management schools. It will continue with the legacy of Kodak, Blockbusters, Blackberry, Palm and other similar cases, but none with the importance for the North American market.
This company in its history has had great numbers: a history of 125 years, more than 3000 stores, hundreds of thousands employees and at its best, the stock price reached USD 146 per share, but today it was USD 0. How it's possible?
Well, the answer is close to the fall of the dinosaurs, they had no ability to adapt, with the difference that the Jurassic park had no choice, it was a meteor, but in the case of the North American retail store, if they had time, notice and alternatives, that is why I point out that it was an inability to adapt and that directly hits the directive line.
If you had poorly located premises, with mega department store format, several lines of products, many own brands, with format (size, decoration, facilities, colors etc) of the 70's, there was not much to do. Investing in restoring premises that are poorly located is throwing away the money indicated by the main management.
Not to mention not having been properly and timely upload to e-commerce, the permanent claims of customers was that they bought online and had to go to withdraw physical stores, a great corporate effort to "disenchant customers."
Looking at the chart with a sample of the history of the Sears stock, the loss of value is brutal. The impact of the subprime crisis, the emergence of e-commerce, the emergence of pure digital competitors such as Amazon are illustrated.