When you think of Sears, what comes to mind? Craftsman tools, Kenmore washers, DieHard batteries … search engines? Buried in the news today was a small announcement that
is being largely ignored my the mainstream press. Sears Holdings Corporation (SHLD), the parent company of Sears, Roebuck and Co., Kmart and Land’s End has purchased Israeli based search engine Delver for an undisclosed amount.
Never heard of Delver? Don’t feel bad – I haven’t either. So wondering what the heck Sears is doing getting into the search engine business I took it for a spin. What I discovered was interesting to say the least. I think I see where Sears might be going with this purchase.
Delver is a search engine with a twist – it puts emphasis on your social networks recommendations and connections to deliver search results. According to their about page, they are harnessing the indexing power of your social network and what they are referencing to deliver search content that is, in theory, more trusted because it comes from your inner circle.
Ok, so they are a search engine that is hopping on to the social networking bandwagon. That’s great, but the question comes back to why is Sears buying them?
It’s my opinion they are being bought by Sears for three reasons:
- Sears “gets it” when it comes to social media.
- Sears understand the marketing landscape is changing because of social media.
- Sears has to be relevant. Times have not been good for them, and they can’t afford to be a follower anymore – they need to be a leader.
It all boils down to basically one statement … it’s all about the social media.
Sears Holdings has been one of the best retailers out there (aside from Amazon) to embrace social media. They are on Facebook, Twitter and MySpace. They interact with their customers (both the good and the bad, positive and negative reactions) through an online community they setup last year called SK-You (which stands for Sears, Kmart and You). Click-to-Brick shopping? They do it better than any company out there.
Sears and Kmart both have suffered badly in the past few years because of negative perceptions and their inability to execute in a changing marketplace. They have run afoul of the blogosphere a number of times, and the complaint jar is running over for both companies. They are on the brink of becoming irrelevant – jus like Circuit City. That is why I believe this purchase is an attempt to be a leader again, to be innovative and stay relevant in a challenging retail atmosphere. Why take Sears word for it that the Kenmore refrigerator is the best value when your social network can tell you?
Some people may not see the newsworthiness of this announcement, and some may question the move altogether. However I think this is another clear indication that Sears “get it”.