The one and only question facing Sears

The one and only question facing Sears
Tags: Customer Experience, Department Stores, Store Design & Layout
January 17, 2012

Amid the sounds of tearing gift wrap and popping champagne corks, ailing giant Sears Holdings Corp. announced over the holidays its intent to close as many as 120 stores. This of course, came as little surprise to the industry that has witnessed the slow motion train wreck that Sears has become over the last several years. The company has desperately been throwing a variety of ideas against the wall in the hope that something sticks. So, far nothing has.

Bloomberg news quoted Sears Chief Executive Officer Lou D'Ambrosio as saying that a combination of more technology and physical store improvements would help to put the retailer back on track and that Sears has to get better at delivering what its customers want across multiple platforms. Mr. D'Ambrosio by the way, came to Sear's by way of companies like Avaya and IBM, so he's clearly no lightweight in discussions around technology.

Few would argue with the idea that Sears lags technologically or that its stores are dingy and dilapidated. Even fewer would dispute the truth that Sears has to execute across multiple channels to be successful – that's just table-stakes in today's industry.

When tactics are mistaken for strategy

The problem I have with Lou D'Ambrosio's thinking is that I believe Sears real problems are far more fundamental and critical. In fact, I would argue that both the lagging technology and shoddy store conditions at Sears stores are symptoms of a far more deadly syndrome and one that goes to the very root of the company. In my opinion what's killing Sears is a complete and utter lack of clear and forward-looking vision. No one has created a cogently articulated picture of what the Sears of the future looks like. No one has made a promise to consumers about delivering something remarkable or uniquely valuable.

It's a classic example of a business mistaking tactics for strategy. Last year the "strategy" was licensing store space to Sears vendors. This year it's renovations and technology. Who knows what will it be next week, month or year. Certainly not the store staffer responsible for representing the brand to the consumer. And therein lies the problem. Sears has lost all sense of brand essence and purpose.

The one and only question

Frankly, there's only one question that the leadership at Sears needs to answer. "What can Sears offer the world that the world can't get somewhere else?" The answer to that one question becomes the cornerstone for the entire strategy going forward. It becomes the prime occupation of every Sears employee – from Mr. D'Ambrosio down. The answer to that question is all that matters.

If the answer is "nothing," then there's no technology or store renovation plan on earth that will save Sears.