Allow me to play the prognosticator this morning. With the current economic “re-adjustment” sorting out the viable businesses from the ones that are pretty shakey at best, I’m going to give you a head start on the next “really big” corporation to go under. Actually (there’s that word again!), they’ve been failing for 20 years now and the only reason you still see their signs up and sales going on inside their stores is because, like General Motors, they are were just so huge that they kept lumbering along on the strength of their size despite their lousy performance.
But like all elephants, GM wandered off to a clearing and fell over – dead forever – the victim of seriously poor management and business decisions that accumulated over the past 40 years. And this next elephant that is going to land with a jungle-shuddering crash is – - – Sears, formerly known as Sears, Roebuck and Co.
The mighty retail giant that once had stores in every city, town and hamlet in the country and literally owned the catalogue retail-sales market is just as dead as GM. How could that be? As I said, they are so large and have always been around and still fill the Sunday papers with those thick, slick sales booklets. But like GM they thought their success was due to who they were and stopped paying attention to what they were doing to change with the times. And leadership lost track of what their customer base was doing.
In the 1960′s Sears decided that the future for them was large stores in shopping malls. And while it was wise to join the new style of shopping that was taking place in the more heavily populated areas, they made the big mistake of shutting down their small stores and catalogue outlets in the tiny towns and market centers across the country, leaving millions of their customers having to look somewhere else for their dry goods. Compounding their mistake, they directed their sales efforts to concentrate on clothing, forsaking their big-ticket base of appliances, tools and home products. They still had them, but put a lot less floor space and effort devoted to them. The mall stores were big, but 80% of the floor space was clothing racks.
And as they were vacating the town square, Sam Walton’s Walmart stores were moving right in as Sears’ dust was still showing down the highway. Who’s running up the big profits nowadays, eh? In an unsuccessful attempt to get back into the “neighborhood,” Sears bought out the bankrupt K-Mart chain a few years ago, but all they got was a shopworn brand and a bunch of stores in places where people weren’t shopping anymore. And now even the malls are ghost towns.
And don’t forget the catalogue. The mighty Sears Catalogue where you could find anything and everything you needed. Pots and pans, linoleum flooring, live puppies, furniture and, in the early part of the 20th century, houses. Order a new home and a few days later four trucks would show up stacked with pre-cut, marked lumber. By the end of the week you had a two-story, 3-bedroom house ready to move into. I could fill two pages with how they screwed up their catalogue department, starting with their silly policy of only giving you a catalogue after you made at least two purchases from it in a 6-month time span. Meanwhile, places like L. L. Bean were filling everybody’s mailboxes with free, unsolicited catalogues. So guess who got the mail-order business?
Yep, those are just two of the several costly decisions that Sears made leading to their downfall. And now that consumer spending on non-essential items has plummeted, Sears’ bones are showing and soon, very soon, they will wander off to their little clearing and fall over.
But we’ve got to make sure our stuff keeps working, so let’s get this equipment checked out now. I’ll go make some more coffee. We’re going to need it.
Listen to a Real Hero ….
Comments OffOn May 7, 2007, Lt. Col. Greg Gadson was with the Second Battalion and 32nd Field Artillery on his way back from a memorial service for two soldiers from his brigade when they hit a roadside bomb in Baghdad. He lost both his legs.
Gadson’s courage and perseverance have become a source of inspiration for many, even the New York Giants, for whom he is an honorary co-captain. Gadson hopes to extend this inspiration to the fire service when he delivers the keynote address at Fire-Rescue International in Dallas on Thursday, Aug. 27.
FireRescue Editor-In-Chief Tim Sendelbach recently had the privilege to speak with Gadson about his experiences. CLICK HERE to listen to the interview (or read the transcript).