• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Clear Spider Logo

Clear Spider

Powerful Inventory Management Made Simple

  • Product
    • Solutions
      • Vendor Managed Inventory
      • Warehouse Management System (WMS)
      • Inventory Management and Control
      • Order and Shipping Management
      • Field Service Inventory Management
      • Mobile Solutions
      • Vaccine Management System
      • SNAP2: Touchless Tech
      • COVID Solution
      • Clear Spider Kiosk
    • Features
      • Barcode Scanning
      • Fulfillment and Replenishment
      • Lot Control and Shelf Life
      • Kitting and Light Manufacturing
      • Serialized Inventory
      • Return Material Authorization
      • Invoice and Billing
      • Reports and Analytics
      • Consignment Inventory
      • Automated Industrial Vending
    • Benefits
      • Cloud-Based Inventory Management
      • Customizable Software
      • Intuitive Design
      • Safe and Secure
      • Quick Implementation
      • High ROI
    • Our Technology
  • Integrations
    • Accounting
    • Customer Relationship Management (CRM)
    • Enterprise Resource Planning (ERP)
    • Point of Sale (POS)
    • E-Commerce
    • Shipping
    • Seamless Integration
  • Industries
    • Industrial and Manufacturing
    • Aerospace and Automotive
    • Government, Education, and Healthcare
    • Research, Energy, and Environment
    • Transportation, Warehousing, and Logistics
    • Technology and Telecommunications
    • Print and Publishing
    • Retail, Entertainment, and Food Services
    • Construction, Maintenance, and HVAC
    • Finance and Banking
    • All Industries
  • Pricing
  • Resources
    • COVID-19 Resources
    • ROI Calculator
    • Case Studies
    • Whitepapers
    • Blog
    • Infographics
    • Glossary
    • FAQ

What Not To Do

Why Sears Is A Supply Chain Management Disaster

March 14, 2019


Sears, once a cultural treasure, was in business for 125 years and was one of America’s more recognizable home brands. Think Amazon, but in catalog – print form.  Sears was well-known for brands such as, Kenmore for appliances, Craftsman for tools, and car batteries that were sold under the name DieHard. Until recently, a Sears’ service truck was as common as a FedEx truck is today. In its prime, there were Sears catalog stores, Sears’ automotive centers, and many services, from roofing, siding, air conditioners, to bath remodeling. In a way, Sears invented Omni-channel shopping. The downward trend and decline is due to a series of missteps in Sears’ supply chain management.

Background

Sears, the American chain department store, was founded in 1893 by Richard Warren Sears and Alvah Curtis Roebuck. It began as a mail order catalog company, opening their first retail locations in 1925. The company grew by selling products at low prices to farms and villages, which had no other access to retail outlets. The Kenmore name first appeared on a sewing machine sold in the Sears catalogue in 1913. In 1927 they paid $500 for the rights to the Craftsman brand and sold its first tools. They later branched out into lawnmowers, and electronic and portable power tools, which led to Sears having the largest revenue of any retailer. Throughout the 1970s, Sears continued to expand its Kenmore brand to household appliances including refrigerators, freezers, and air conditioners. In 1985, the company introduced the Discover Card. It was the first company to offer cash rewards to customers using their credit card. In the late 1970s and early 1980s, Sears’ annual revenue reached about 1% of U.S. GDP, more than Amazon’s revenue last year.

Where Did Sears Go Wrong?

There are a few areas where Sears went wrong, which led to their decline.

Number 1: Branching Out

Firstly, they branched out too much. Since Sears opened, they were known for selling Craftsman and Kenmore brands, catering mostly to males and home-building products. While attempting to increase sales in the 80’s, they went after female shoppers.

“The Softer Side of Sears” ad campaign was launched in 1993 to get the attention of women and back-to-school shoppers. However, it didn’t mix well with the home-building products and washing machines. This was an early sign of them heading in the wrong direction. Since Sears added to their store, they also added on insurance, banking, investments, and real estate.

Number 2: Cutting Corners

In addition, the Sears brand that was once respected for quality, value, and innovation, began to cut too many corners. To reduce costs, they adjusted the ratio of full to part-time staff in their store, then cut commissions and benefits. They began transferring experienced sales people into departments they didn’t know, asking them to sell appliances one day, and women’s fashion the next. They sold off their credit card to create a short-term payout, but in the process lost a major competitive advantage.  

Number 3: Their Competitors

Throughout the 1990’s, Sears faced mounting competition from numerous big-box stores that offered even lower prices. In 1991, Walmart beat Sears as the nation’s largest retailer. Sears then shut down their catalog, because they thought that home delivery was not something that shoppers really wanted. Sears’ last catalog ran in 1993, just short of its 100th anniversary.

Number 4: Sears’ Supply Chain Management and Assets

In 2005, investor Eddie Lampert bought Sears, and merged with Kmart, which Lampert had bought out of bankruptcy two years earlier. They had a combined 355,000 employees and more than 3,500 stores. In 2009, Sears began cutting more jobs and then began to sell off leases to its prime locations. In 2011, after several years of profitability, Sears began posting losses.

Sears then began to sell off their biggest assets that were synonymous with their name, and in 2018 filed for bankruptcy. Their workforce totaled less than 90,000 across fewer than 900 shops at the beginning of 2018. Sears stripped their company of the unique brands that brought customers to their stores. 

The Takeaways

You must ensure that your business, and goals, stay in line. Companies shouldn’t lose sight of what you’re about or what your main focus is. Customers don’t like change.

Once the focus shifts to being all about the profit, instead of filling the gap that customers need, your business heads downhill and results in the loss of consumers. Sears didn’t do enough to reinvent as times changed. They failed to stay close to their shopper’s needs and adapt to the changes. Instead, refocusing the brand could have resulted in a smaller company, one that could again, become an industry leader.

 

Want to learn more about your supply chain? Find out how Clear Spider can help you. 


Footer

Schedule a Demo

Ready to learn more about what Clear Spider can do for you?

Dashed curved arrow

Company

  • About Us
  • Awards and Achievements
  • Careers

Contact Us

  • 1 855-902-5327
  • 905-366-0222
  • info@clearspider.net
  • Contact Form
  • 5749 Coopers Ave
    Mississauga, ON L4Z 1R9

Clear Spider Logo

© 2023 · Clear Spider

Sitemap  |  Privacy Policy  |  Terms and Conditions

Bring us your most
complex inventory
problems.

We’ll solve them for you.

Learn more about how Clear Spider can work for you. Fill in the form to receive a quote.

Warehouse Management System - Quote

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Bring us your most
complex inventory
problems.

We’ll solve them for you.

Learn more about how Clear Spider can work for you. Fill in the form to activate our demo at no obligation.

Warehouse Management System

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Bring us your most
complex inventory
problems.

We’ll solve them for you.

Learn more about how Clear Spider can work for you. Fill in the form to activate our demo at no obligation.

Vendor Manged Inventory

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

How effective is your inventory management?

VMI Assessment

"*" indicates required fields

Step 1 of 7

14%
What are the factors contributing to increasing costs in your supply chain and inventory operations?*
What are the most common issues your customers experience?*
How accurate are you in tracking on-hand quantities of inventory you have in all your stocking locations?*
What are the challenges you face in getting inventory to where it needs to be at exactly the right time?*
Given your current inventory management system, which of the following features will have the greatest impact on meeting your inventory management goals?*
Is VMI right for you? Can you adopt VMI to increase sales for your business?
The results are in - what email address should we send your results to?
Got it! Just need a couple more details and your results are on their way!
Name*
This field is for validation purposes and should be left unchanged.

Bring us your most
complex inventory
problems.

We’ll solve them for you.

Learn more about how Clear Spider can work for you. Fill in the form to activate our demo at no obligation.

Start Demo - Hero

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Bring us your most
complex inventory
problems.

We’ll solve them for you.

Learn more about how Clear Spider can work for you. Fill in the form to activate our demo at no obligation.

Start Demo

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Please fill out the form below to get your custom quote!

Fill out the form below to see Clear Spider’s Vaccine Management System live!

Vaccine Management System

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Fill out the form below to see SNAP2 in action!

Enter your email to watch our webinar on How to Inoculate Your Supply Chain Against COVID-19.

  • This field is for validation purposes and should be left unchanged.

Enter your email to watch our webinar on Technology vs COVID-19.

  • This field is for validation purposes and should be left unchanged.

Fill out the form below to see SNAP2 in action!

See SNAP2 Live!

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.

Access your full ROI report!

The full report includes Estimated Monthly Savings ($) and Time to Break Even (Months).

  • This field is for validation purposes and should be left unchanged.

Please fill out the form below to get your custom quote!

Pricing

  • This field is for validation purposes and should be left unchanged.

By completing this form, you agree to our Terms and Conditions and have read and acknowledged our Privacy Policy. Clear Spider may use this information to provide you with relevant content about our products and services, from which you can opt-out at any time.