The Wall Street Journal explains that the main beneficiaries of Sears closing many stores and driving away existing customers has been Home Depot and Lowe’s. Both chains sell large appliances and tools, items that people once visited Sears for. One analyst determined that if Sears loses about half of its anticipated sales in those sectors in the next few years, just that former Sears business could boost each big box’s total sales in a given store by around 1%. That doesn’t sound like a lot, but there is a lot of money at stake.
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2 comments:
Brand recognition is the key element here. Sears was known for superior tools with warranties that could not be beaten. They were not a tool store. So when big box store took over most of their (Sears) other business (i.e. clothing etc) Sears lost consumer shares. Instead of falling back on their "BRAND" they branched out in other directions and let the quality of their mainstay slide. And this is why Sears is going down. Stores must have an "identity" that is easily marketed. WalMart is "buy everything for less" and the quality isn't necessarily expected...whereas Sears needed to hold onto the one item that they became famous for "quality."
I saved huge on a washer and dryer in Lowes.Both were Frigidaires,identical to the ones sold in Sears.Identical warranties as well.
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