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7 Reasons Sears has Finally Sunk


7 Reasons Sears has Finally Sunk

Today, Sears has finally done what we’ve all known has been on the cards for a long time now. It’s filed for Bankruptcy and the CEO, Eddie Lampert, will step down, though remain as Chairman.
The 125 year old iconic retailer, which started out under Richard Sears selling mail order watches, was one of the nations first departments stores and once held the crown as the largest in the land. 
But with the great recession, a string of bad decisions and a failure to adapt to changing times and online competitors, 2010 was the last year it was able to muster a profit. 
The company now operates 687 Sears and Kmart stores, down from 2,000 in 2013. 142 more are set to close before the end of the year.
According to different retail experts, here are some of the reasons why:
1. The shops were in the wrong locations, trying to fit in with clothes shops in shopping malls, rather than hardware shop locations.
2. Trying to compete in the clothing market, they launched the ‘Softer Side’ clothing range, but it was phased out before it fully developed.
3. Competitors such as Walmart and Target opened with strong discount propositions which outshone a confused Sears. And then Amazon came along…
4. Sears had some excellent homeware brands, but they never made the most of extending the ranges to their fullest potential. 
5. They never developed their DIY / repair service properly. If they had a national strategy, it could have been a big part of the business. 
6. To try and save money, Sears sold off some of it’s most valuable locations and brands to key competitors.
7. Key suppliers became wary of Sears financial problems, demanding tight payment terms or terminating business with them altogether.
After years of staying afloat through financial maneuvering and relying on billions of CEO Eddie Lampert’s own money, it has finally decided to reorganise under Chapter 11 protection rather than liquidate the business under Chapter 7.
Many are doubtful that is can rise from the ashes but if you want to make the most of the liquidation sales in the mean time, here are the list of stores.
Further reading here:

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