Will Sears’ Comeback Strategy Work?

 

 

 

For the majority of Americans, Sears department stores has played some role in our lives: it was where you bought Toughskins jeans, a new refrigerator, or a set of power tools. It was never a sexy brand but then, that wasn’t what it’s role was.

It was an institution. In 1969, two-thirds of Americans shopped at Sears, and its sales represented 1% of the nation’s economy.

 

 

It was – and we emphasize, was – “where America shops.” That was the brand’s slogan from 1974 to 1978, followed by “There’s more for your life at Sears” in the 1980s.

 

Today, the brand needs a lot more than a slogan. After several bankruptcies, scores of store closures, and thousands of employee layoffs, the brand is doing all it can to be meaningful again.

 

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To become relevant will require moving mountains – the ones that separate Sears from a younger generation that has no idea what the brand stands for.

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Sears’ version of Apple’s Genius Bar, at the Sears Home & Life store in Overland Park, Kansas. One-on-One customer service is a priority of the brand’s new store concept.

But is it too late?

 

Sears has been largely irrelevant ever since it was merged with Kmart and forced to compete with upstarts who were doing it better and faster: Amazon, Wal-Mart, Target, Kohl’s, Home Depot, and Lowe’s.

 

By 2016, Sears had lost 96% of its stock market value.

 

Now, investors are betting on a new, smaller-format concept called Sears Home & Life. Let’s be frank: no one is ever going to call it anything but Sears, but the lifestyle intention will probably resonate for some people.

 

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“What we have to do with the boomers group is win back their trust, win back their confidence.”

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It’s a last-ditch strategy, for sure, which began awkwardly when the brand announced its new name – and logo, a blatant riff on airbnb’s.

 

It’s not just a passing resemblance: Sears’ new logo is practically identical to airbnb’s. In the meantime, we’re still trying to understand what “moments” Sears is talking about. Buying a refrigerator?

With Sears Home & Life, the objective is to free the brand from excess merchandise and focus on the tried-and-true products and services that Sears has always been known for: appliances, appliance repairs, mattresses, and home and garden tools.

 

Keep in mind that Sears still owns the house brands that made it famous: Kenmore, Craftsman, and DieHard. These will be the equity that will help underscore the brand’s relevance and authority.

 

The first Home & Life stores opened in Lafayette, Louisiana, Overland Park, Kansas, and Anchorage, Alaska, with none larger than 12,500 square feet.

 

Connected home technology is showcased at the Overland Park store in Kansas. Sears is also banking on the brand equity of its house brands, like Kenmore, which is still trusted by consumers. (Colin E. Braley/AP Images for Sears Home & Life)

To become relevant will require moving mountains – the ones that separate Sears from a younger generation that has no idea what the brand stands for.

 

“We are looking for emerging communities where young families are building homes,” said Peter Boutros, chief brand officer for Sears and Kmart in an interview with CNBC. “Also, where boomers are downsizing. What we have to do with the boomers group is win back their trust, win back their confidence.”

 

It’s true that there are still customers who want to experience products in a physical store, and rely on the guidance of a customer service rep. Sears Home & Life will also feature its own version of a Genius Bar. The stores will also allow customers to order products for delivery, order-online-pick-up-in-store, and a curbside pickup option.

 

While Sears is hardly ahead of the curve with any of these ideas, it’s a major step up from where the brand was just 12 months ago.

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