Sears Canada Bankruptcy – What Happened?
Some people will say that Sears problem was having the perfume counter at the entrances of the stores, effectively and automatically excluding anyone sensitive to perfume as they didn’t want to walk past the fragrances to reach the rest of the merchandise.
However that’s not it, part of the problem is simply that Sears’ clientele is generally older and less interested in online shopping. “The reality is, when your top line falls as significantly as it has and your customer base doesn’t buy online — they are middle-aged to older, and they shop the store — as much as you try to shift channels to online, it’s just not happening,” one former executive said.
Centered on the hashtag “#wevechanged,” the brand launched a marketing campaign and had opened a pop-up in Toronto designed to bring attention to its new product lines, which are aimed largely at a younger demographic.
It should have been a simple transition from catalogue to the internet – but what happened? Sears didn’t evolve quick enough and the company got stuck in a prior decade and didn’t cater enough to the new generation of spenders. They fell behind in being modern and welcoming the Gen X and Gen Y customers, who are the main spenders these days. The window of opportunity to transition from paper to online closed quicker than they thought.
“Assess the potential of your company assets and pay attention to your competitors’ growth strategies.” Business owners need to stay on top of their company’s assets and keep an eye on their competition, changes in the marketplace and your consumer’s expectations. They just launched a new rewards program to boost its already prime service. Always stay up to date with retail trends whenever possible as they are always changing.
“Your business must be mindful of how to add value for your customers.” In comparison, a company like Amazon, has been able to provide value for customers by perfecting the challenge of online retailers, which is the supply chain. They shorten wait times and have hassle-free returns addressing the two biggest pain points of the online experience. By doing so they have opened a new channel for external partners. Consider what kind of value can your business add. Perhaps special services for online customers, buy online and pick up in store. Your customers will love these because it’ll make their overall experience shopping with you easier.
With the growth of technology over the last decade, the ability for businesses to quickly adapt and accommodate for changing customer expectations will only become more important as technology becomes more advanced.
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