Let me start out by saying that I’m one of the biggest fans of both Sears and Kmart. These two stores represent about 70% of my childhood memories of shopping with mom, with the remaining 30% coming from National Supermarkets of St. Louis. Which is why it both saddens and angers me when I have to ask, “What the hell is wrong with Sears?!”
It’s been a brutal few days for Sears Holdings (SHLD) the parent company of both Sears and Kmart. After dismal 2nd quarter numbers that shocked analysts (and shocked me) a lot of people are starting to prepare for the end of Sears. In short, the company not only fell on its face last quarter, but it did so in such a way that the rest of the retail world is left to wonder just what has happened to this once iconic company and brands.
Ever since the merger of Sears and Kmart in 2005 it has been a disaster, to put it nicely. Under the new leadership the stores are falling apart, customer service is non-existent and a corporate strategy is nowhere to be found. There was a time when Sears stood for “Satisfaction Guaranteed or Your Money Back”. Well nowadays it should read “Nothing is Guaranteed in Life — Especially Any Hopes of Getting Customer Service Here.”.
Of course I still think that both Sears and Kmart have tons of potential. However, it seems there is no clear direction by either brand nowadays. They both just launched a wonderful Christmas Club program (a little late in the year, but better than never) but you wouldn’t know about it unless you went to a Sears or Kmart store – and judging by sales figures, nobody is. The problem is they advertise to the few people (like me) who still go there instead of advertising to the masses to draw people into the store. I have no doubt if they would spend a few dollars on advertising this Christmas Club program they would have people flocking into the stores – especially in this crappy economy.
The same goes for the bluelight specials that have returned to Kmart. What’s that? Haven’t heard of it? Well don’t worry, neither have most people who haven’t set foot in Kmart in a few years. Again, a lack of advertising outside of the stores has meant this program, which could draw a lot of shoppers back in to see what it is all about, has left Mr. Bluelight fallen flat on his face.
So advertising is one area where they fall flat, but store maintenance is another area they are failing at as well. Kmart stores are old – many of them haven’t seen a remodel since the 90s – and they show it badly. Tile that is falling part, carts that are rusting to pieces and a decor that screams 1976. Sears Holdings management has not invested the money to revamp these stores and in many cases just lets them fail. Another retailer will move in right after them, revamp the building and do stellar sales. It just makes absolutely no sense. A little bit of money now could see dramatic sales increases at the stores – but it seems nobody wants to invest a few dollars to take that risk. They would just rather sit around while Rome burns.
When it comes to the Sears experience I’d stop blaming the housing market and start bringing back the customer service people came to expect from Sears. Staff the stores, and stop this outsourcing of call centers and people who can help. Make people proud to have a kitchen full of Kenmore appliances and a garage full of Craftsman tools.
In fact, customer service has fallen so badly at Sears and Kmart it has become a joke. This past weekend I ordered a blender from Sears.com and the hassle I had to go through to get it was unbelievable. First, the advertised e-Buster prices they had on the website would not show up correctly in the cart. I placed the order and thought “no problem, I’ll call them up and they will adjust it” like every other merchant does. Nope – the lady, although sympathetic, said all she could do was put in a request for a price adjustment. Talk about a dismal fail. Why in the world can’t the CSR’s do price adjustments? When I went to pick the item up at the store the price in the store was $20 lower than what it was online. At least the lady in the store was able to do a return of the item and repurchase at the lower price. Still, this was just ridiculous. CSR’s who aren’t empowered to do anything but say “I’m sorry” and a website that does not reflect the right pricing (I’ve had incorrect pricing show up in my cart many times on Sears and Kmart.com). Epic fail.
The time for fooling around is over. Way too many analysts are writing the obituary for Sears and Kmart. It’s time they did something, and did it now, instead of sitting around and wait. Find a clear corporate strategy and stick with it. Their biggest strength right now in this economy is layaway and the Christmas Club. If I was Sears Holdings management I’d push this strategy non-stop this holiday season starting right now. Then for 2010 I’d start the Christmas Club program on January 1st. I’d make Sears and Kmart synonymous with shopping smart.
This loyal shopper predicts unless they do something, and do it soon, Sears Holdings has probably two more years before it collapses. So Sears, it’s up to you – are you going to sit around and go into retail history, or are you going to at least try and save yourself? The customers (the few of us that are left) can’t do it for you.
