Posts Tagged Retail

Cash Will Not Save Sears, but Customer Service Just Might

Sears - Columbia, MOMany folks know that I’m probably one of the biggest supporters of Sears – it’s the store I grew up with, and the store I continue to shop at today.  I’m proud to live in a Kenmore and Craftsman household.  However, at the same time, I’m also one of their biggest critics.  It’s because our household is such a loyal Sears customer that I have such harsh criticism of them at times.  After all, I remember the heydays of Sears, and my partner Keith worked for Sears for 15 years.  We both want to see Sears survive and thrive, but it’s obvious that something isn’t right.  It’s not the cash starved stores that irk me the most, it’s the customer service – or rather, the lack thereof.

Sears has always stood for customer service.  I remember as a kid growing up in the 80s and early 90s that Sears was “the” place for my parents to shop.  Everything from my school clothes to the washing machine came from Sears – and when something went wrong, Sears was always there to take care of things.  Didn’t have the right size?  They’d get it.  Needed advice on what to buy?  They knew their stuff.  Something broke?  They’d knock themselves over to fix it.  They were the hallmark of customer service and if you ask many folks, especially older folks, they will tell you that Sears stood 110% behind the motto, “Satisfaction Guaranteed or Your Money Back.”

Today, a quick search around the ‘net and you’ll see that the  biggest gripe with many folks about Sears is their lack of customer service.  Phone calls that never get returned; orders that disappear into the ether; items that break that take month to get fixed; folks in the stores who just don’t understand what they are selling.  It’s frustrating for them, and as anyone in marketing can tell you, once you get a customer unhappy with you it’s almost impossible to turn them back into a loyal, satisfied customer.

I myself have recently went through this with two orders I placed on the Sears.com website.  Both orders ran into problems – and while I understand that issues come up, what really got me was that nobody really knew (or seemed to care) how to resolve the problem.  Endless phone calls that never produced a successful resolution.  Even when the person at the other end of the phone wanted to help, tried in desperation to help, they often hit a roadblock.  One lady I was talking to tried in vain for over 15 minutes to get the store to answer the phone.

No amount of money can fix bad customer service.  Sure, some of the stores could use some TLC, but you can have the fanciest, most modern store in the world and it doesn’t matter if your customer experience is lacking.  Customers will leave in droves never to return again no matter how shiny the tile is or how fresh the paint smells.

Of course there are stores that try, and some that succeed, in still delivering the customer service that Sears was once known for.  One store that does this amazingly well is the Sears mall store located in Columbia, Missouri.  In my travels throughout the US I have visited Sears stores in over 12 different states.  I can say that hands down, this store far surpasses any other store I’ve been to in the customer relationship department.  It’s not the fanciest or biggest store Sears has (it’s classified as a “B” store), but the people there are truly amazing.

Take for instance a gentleman named Miles.  Miles has been with this store since – well, as long as I can remember.  He’s an appliance salesman, but he’s more than just someone who wants to sell you something.  He listens to the customers, he asks them about what their needs are – and then he recommends a product to fit their needs.  I would drive halfway across the state to buy something from Miles.  I remember a time when I was having a tough time tracking down a light bulb for the water dispenser in our refrigerator.  It used a non-standard design and I went in the store looking to see if they could possibly order one.  Miles listened, then he went into the backroom and came out with one – no charge.  I wasn’t looking for a freebie that day, but he wanted me to leave a happy customer and so he performed a small gesture that meant a lot to me.  That’s what customer service is all about.

Sears - Lawn & GardenSears corporate would do well to send some of their top brass to this store to find out how to do things right.  They could learn a lot from spending just a few days on the floor with not only Miles, but many of the other employees there.  Even the manager of this store is amazing – I happened to be in the hardware department one day when she overheard me talking with an employee giving my name so he could send me some information to my email.  She came up to me and engaged me in conversation and thanked me for the positive comments I had put in for the store.  Again, here was a gesture that cost the company absolutely nothing but meant a lot to me, the customer.  To this day when I’m in the store if she sees me she will say hello and ask how I am doing – you can’t buy customer satisfaction like that.

My partner Keith worked for Sears for most of his early adult life.  He was a former employee of the Sears in Columbia, leaving 6 years ago to finally get his college degree.  To this day he looks for any opportunity to return to Sears because he, like me, believes in Sears.  He really misses the customers and the interaction he had; and though sometimes I think that perhaps he is seeing Sears with rose colored glasses, I think in the end he really understands what it will take to make Sears great again. 

If anyone from Sears is reading this, believe me when I say there are those of us out here who still believe in the company.  We want to see you survive, to thrive, and to be the American icon you once were.  Money alone won’t make that happen – because in my opinion what can really help turn Sears around is something that costs very little, yet has enormous returns on investment – customer service.

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Cutting off Walmart

For years now I’ve been anti-Walmart, but still maintained a sort of quasi relationship with them.  I distrusted them, complained about them and decried their employment practices.  Yet, I still did about 10-15% of my shopping with them because – well, because it was convenient at times.

That all changed last Thursday while surfing Netflix on demand for a movie to watch and came across “Wal-Mart:  The High Cost of Low Prices”.  This 2005 documentary interviewed many former and current employees of Wal-Mart from all ranks—from cashiers to high-level executives.  The story throughout was the same – Wal-Mart considers employees and small, family owned businesses enemy #1.

Tale after tale of tactics by the company to push employees to work longer, harder and many times off the clock.  Stories from executives of how many employees were told to use welfare and other public assistance programs just for necessities.  Can you imagine being a full time employee and still having to use WIC or Medicaid?   Apparently that is common practice with Wal-Mart.  Their own employees making below the poverty levels, and Wal-Mart really not giving a damn. 

Then there were the stories of the China factories that produce for Wal-Mart.  The horrific working conditions these people have to face on a daily basis.  Stories of young males and females who should be enjoying their youth working and living in the factories because that was policy.  It was nothing more than modern day slave labor.

I could go on, but I really encourage you to watch the documentary yourself and listen to employees tell the Wal-Mart story.  You be the judge.  If you can watch this film without shaking your head in disgust then perhaps Wal-Mart is the store for you.

As for me, I’m officially 100% Wal-Mart free.  The one holdout in our family, my dad, has even switched with me.  We now support our local merchants, which we are lucky enough to have quite a few of (the Wal-Mart in Boonville, MO hasn’t managed to put them all under yet – though I am sure they are trying ). 

The amazing thing is – even after a weekend of shopping at local businesses, many of which are family owned – I noticed something:  I wasn’t paying more.  In fact, in a few cases we noted we were paying less – much less than Wal-Mart.  What’s more we noticed that many of the goods we were now buying were stamped “Made in the USA”.  Something that Wal-Mart has just about managed to destroy completely – American manufacturing.

As for me, and the rest of my family – we took the pledge to be Wal-Mart free.  I encourage you to do the same.  Don’t be fooled by the high cost of low prices –  many of which aren’t really low after all.

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Saving Kmart from Itself

Some of you know that I’ve been a big Kmart fan ever since I was a child.  It brings back a lot of good memories of shopping with mom and childhood in general.  Mom passed away in 2007, but every time I go into a Kmart all those memories come flooding back.  It’s a great store that still has a lot “personality” to it.

Kmart, unfortunately, has been through some very rough times.  At one time they were the largest retailer in America, far surpassing Wal-Mart, and boasted over 2,300 stores.  Today, that number has fallen to 1,300 stores and as many folks know the company itself went bankrupt in 2002 and was eventually merged together with Sears, another iconic retailer that has fallen on hard times.

Yet, Kmart has continued to survive to despite it all.  In fact, they have not only survived – but they have also started to turn things around.  Same store sales have increased and their famous layaway program has proven to be a big hit during these troubled economic times.  Just when it looked like Kmart was done for, they managed to pull themselves up by their bootstraps and regain some of their lost ground.

But, despite all this, they face a problem that only has one solution.  You see, most Kmart stores haven’t been remodeled in almost 20 years.  Common complaints from people who shop there, or visit a Kmart for the first time, is the same thing:  dirty stores, dilapidated buildings, old shopping carts, confusing store layouts, etc.  Kmart has some of the oldest locations of any other retailer, and due to the 2002 bankruptcy and merger with Sears many of the stores haven’t seen much needed maintenance and remodels.

Don’t get me wrong – some Kmart locations manage to get by with what they have.  Plus, to be fair, a few locations have been remodeled.  However, out of 1,300+ locations, only a handful have been remodeled in the past few years.  Others have seen only marginal improvements such as new shopping carts, some fresh paint here and there, and other low-cost band-aids to help the stores continue to operate and look at least a little better.

Kmart could really compete if only given the chance.  The problem is, they can’t compete because of the 800lb gorilla in the room – Sears.

While Kmart has managed to win back shoppers and increase revenue, Sears has been bleeding money like crazy.  The latest quarterly results show that Sears lost over 260 million dollars.  That’s a lot of money.  Money that could be used to do remodels, refresh stores and help people rediscover the stores.

Sears is in bad shape.  Worse shape than even Kmart was in back in the day.  Their stores are also ancient and in desperate need of remodeling.  Many of their core shoppers, older and elderly folks, are no longer around.  They struggle with clothing and apparel lines that nobody wants to wear.  Their bread and butter, appliances and hardware, is suffering because of the economy and also because of the condition of the stores.  Nobody is going to buy a $1,500 refrigerator from a store that appears it will be going out of business in the next 30 minutes.  Top that with severe cost-cutting measures that have drained a lot of the talented personnel who once worked in the stores.

Honestly, as an outsider looking in, I don’t see that much hope for the Sears department stores.  It’s time they let the Titanic sink without trying to patch the hole with scotch tape anymore.  There simply isn’t enough money to keep two retail chains going that are both in need of desperate makeovers.

The only hope Kmart has of surviving is to realize that Sears is dead, it’s time to let Kmart live again.

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Kmart: Turning Around a Negative Brand Image

kmart-logo I originally posted this on MyKmart.com, a public forum where customers and employees can talk about Kmart and suggest ideas for improvement, and talk about their general experiences.  I’m reposting it on my blog because Kmart still continues to be my favorite place to shop, but they are a classic example of how a negative brand image can really hurt a company – even after the initial reason for the bad image has past.  You can read the original thread here.


It’s good to see so many people getting involved and telling their stories about Kmart and Sears.  I’d like to give my input using my marketing background a bit to respond to the whole Sears vs. Kmart thing.

Brand name and brand image play an important part in consumer choices.  Kenmore and Diehard are two brand names that most consumers have a positive image of and therefore they tend to be the leaders in their categories.  As a company, many people also have a positive image of Sears.  Almost everyone grew up with Sears and they have a reputation of still being customer-focused (granted, they did slip for about 3 years but I think they have gotten back on track).

On the other hand Kmart’s #1 problem is not what they are doing today.  I think that Kmart is doing everything extremely well from what I can see (I’m a customer, not an employee) and I’ve been very impressed at the turnaround I’ve seen in the stores and in the way they advertise.

Kmart’s problem is an image problem that started back in the late 1980s and continues to this day.  So many people have a negative image of Kmart because of the sad shape the stores got into during the late 80s and 90s.  People think of Kmart as dirty, unorganized and below Wal-Mart in terms of quality (I’m not making this up, numerous marketing textbooks and studies have shown this).  The bankruptcy of Kmart seriously hurt them even further, and until the merger with Sears most stores had not seen a remodel since the early 90s (if that).

Today Kmart is turning its image around, but one of the most difficult things to do in marketing is to take a brand that has a negative image and turn it into a positive one.  From the publicly available data out there, we know more people are returning to Kmart stores and we know that the quality of merchandise has been improving.  It’s now up to Kmart to get those people to become loyal shoppers, and to continue the momentum they built.

I’ve posted it before, and I’ll post it again, but I fully expect Kmart to shutter more stores in the next few years.  There are some stores that just will not be profitable no matter what they do.  They are in a bad location or they are in such bad shape the cost of trying to modernize them is just prohibitive.

I think in 3-5 years we might see the opening of new Kmart’s — but it won’t be a massive expansion.  Select locations, maybe 2-5 a year max; and that might be a generous number.

Kmart had a long rise to the top (in 1986 Kmart was the #1 shopping destination in America) and subsequently their fall to the bottom was hard and painful.  However, I still have faith in the Kmart brand, the people behind Kmart and in Sears Holdings.  I grew up with both Sears and Kmart, and to this day every appliance in our house says Kenmore and every tool in the garage says Craftsman.  I haven’t given up on them yet, and don’t intend to give up on them anytime soon.

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Failure to Understand Your Customer

This past week our television in the bedroom went out.  It was a standard tube (CRT) television that we used to watch the news, Letterman and Craig Ferguson.  Nothing fancy, just a basic model for basic television viewing.  So when it went out I thought “no problem, I’ll just get another one to replace it — $150, $175 tops!”

It turned out I was dead wrong.

For over 5 hours my dad and I drove around Columbia, MO looking at what the retailers had to offer.  Best Buy, Sears, Office Depot, Staples, Target – you name it.  Every store it was the same thing, “Oh, we don’t sell those anymore – nobody buys them – but we have this great LCD flat panel starting at only $500!”

I did not want to buy a $500 TV, I wanted a $150 no-frills television.  The one you used to be able to buy everywhere.

We eventually just gave up.  Apparently retailers no longer care about what we want to buy (I talked with others who were facing this same problem), but instead they are pushing what they want to sell.  Right there is the disconnect – customers, especially in today’s world, don’t like being told what they are going to do.  They are the ones who tell the retailer what they want.

I was ready to give up when I thought to myself – I’ll see if Amazon had any for sale.  A few clicks later and I found not one, but 7 different models!  In less than 10 minutes I made a choice, purchased it and it was on its way.  What’s more it arrived the next day for only $3.99 (I subscribe to Amazon’s Prime program).  They shipped a 50lb television via Fedex overnight and only charged me $3.99 – wow!Amazon Television in Bedroom

The total cost – with the $3.99 shipping – was $161.98.  Right in the middle of my budgeted amount.  Plus, I was able to avoid paying sales tax by buying online and the television can pick up the new digital signals and convert them to standard definition should I ever want to use this as an over-the-air TV.  Not bad for $160 and change!

Amazon understood what their customers wanted and provided it.  The local retailers, even the national chains, instead wanted to tell me what I was going to buy.  They probably make a nice profit margin selling those LCD TV’s, but some genius forgot that not everyone wants (or can afford) a flat panel television.  Some people just want a basic television.  How many lost sales are they missing out on?  What if just one retailer would buck the trend – how much increased business would they do?

It’s all about the customers – and businesses that fail to realize that aren’t going to survive.  Not in this ever-connected world where if you don’t deliver what I want I can just click over to someone else who will.

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Shopping Smart

It’s no secret that one of my favorite places to shop is Kmart.  So this chilly Sunday found me down at the Jefferson City, MO location doing a bit of shopping.  Now some people wonder why I drive 40 miles to shop at Kmart when there is other choices – such as Wal-Mart – right in my own backyard.  There are two reasons:  nostalgia and shopping smart.

Nostalgia is the easy part – Kmart is the store I remember as a kid shopping with mom.  It brings back a lot of good memories every time I see the red “K”.  You can’t put a price on nostalgia.kmart independence missouri

The second is something so many people fail to understand, and yet during these tough economic times really should be examined.  Shopping smart means taking the time to do some research of your own to find the best prices and where your dollar does more.  Now these two concepts are sometimes mutually exclusive.  Sometimes, I argue, that you should pay an extra 20-cents for something because of the overall affect that extra 20-cents has both up and down the retail chain.

For example, is it worth it to spend an extra 20-cents on a toothbrush if it was made in America?  I think so.  For my money I buy American whenever I can.  Keeping jobs in America and keeping Americans working is vitally important not only now, but when times are good too.  In the past decade we’ve seen Wal-Mart ship so many jobs overseas that we are facing a crisis nowadays in the manufacturing sector.  As Henry Ford once said, he couldn’t sell cars unless he paid his employees a decent wage to buy them.  He understood the concept of business and how the dollar travels up and down the chain.

In the past 6 months I’ve had a chance to explore the falsehoods of Wal-Mart and I’ve amazed myself at what I’ve found.  The biggest surprise:  Wal-Mart rarely has the lowest prices.  Sure, they have a “core” set of goods that have low prices (loss leaders) but when you mix in everything you normally buy on a regular basis at the store, Wal-Mart is nowhere near the lowest.

Case in point, let’s take a look at sanitizing wipes. 

  • Kmart Store Brand (Made in USA), 70 wipes – $2.99
  • Wal-Mart Store Brand (Made in China), 70 wipes – $3.49

Imagine that; not only was Kmart cheaper, but the American made version is cheaper as well.

Wal-Mart says they don’t do “gimmicks” – they define a gimmick as things like double and triple coupons.  You know, the type of gimmicks that save us working folks money.  So many grocery stores and retailers double coupons on a regular basis now that if you aren’t clipping coupons you might want to start.  I can routinely cut 30-40% off my receipt just by shopping smart with coupons.

So the next time you are getting ready to do some shopping why not stop by your local Kmart, Dollar General, Target or locally owned business.  You may discover that there is other choices out there besides Wal-Mart; and you may end up keeping more jobs in America and paying less to do so.

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