Sears Holdings Corp. has announced the closure of over 60 Sears and Kmart following a 31% drop in year-end revenue announced on May 5th. While once a major player in large retailers, Sears has been steadily losing customers to primary competitors Amazon and Walmart for almost 6 years. In 2011 the company revenue was estimated at $9.4 billion. Revenue has since dropped to $2.89 billion as reported in the last quarter which marks the 26th straight quarter of decline.
Sears Holdings Corp. estimates around 100 unsuccessful stores, and plans to close 48 Sears and 15 Kmart stores by the end of the year. Advisors have urged Sears to continue to sell certain products to larger businesses to remain profitable. This includes the sale of Craftsman brand tools to Stanley Black & Decker Inc., and a partnership to sell Kenmore appliances and Diehard battery products on Amazon. Currently, Sears’ Chief Executive is pushing it to sell the Kenmore brand all together. While these deals have helped Sears in the meantime; they may not be successful enough to keep Sears afloat in the long-run.
After 26 straight Quarters of decline, it will be hard for Sears to re-establish themselves as a major retailer. As they continue to lose sales to larger, more adaptable businesses, they will likely need to continue to sell brands such as Craftsman and Kenmore to larger companies. Sears decline from a once powerful market share can make you question how to avoid drastic economic decline, and rather, keep your company’s strong foothold in the marketplace. It is imperative to recognize when a company needs to change and improve its structure to stay competitive in an ever-changing market. When a company fails to recognize and act upon its downfalls, it is easy to fall behind. As I always state; it’s imperative that all businesses master two key areas of business, which is to always MARKET & INNOVATE!