Market Analysis of Sears

Company Profile

From the humble beginnings of selling watches by Richard Sears in 1886, Sears has grown to be one of the most recognized brands in America (Sears Archives). Hiring Alvah Roebuck in 1887, together they published their first catalog featuring only watches and jewelry (Sears Archives). After selling the watch business in 1889, the two partners reestablished their partnership in 1891 and the company has been operating ever since (Sears Archives). Changing the corporate name to Sears, Roebuck and Co., the corporation continuously expanded its product and services portfolio to meet the needs of their customers. Over the decades, they introduced numerous brands that became intertwined with the American household- Kenmore, Craftsman, Allstate Insurance, Discover Card, DieHard batteries and The Great Indoors (Sears Archives). Additionally, Sears expanded and diversified itself through acquisitions such as Coldwell Banker, Dean Witter, Orchard Hardware Supply, Lands’ End and in 2005, merged with Kmart; becoming Sears Holding Corporation (Sears Archives). With their breadth of products and services, Sears appears in nearly every market segment from sporting goods, automotive repair, home furnishing, outdoor living, specialty clothing, jewelry, consumer electronics, baby furniture, children’s toys, personal optical specialist and home renovation services (Sears).

As of Sears’ last annual report dated February 2, 2013, they operate 788 full-line stores, 10 Sears Essentials/Grand stores, 758 Sears Auto Centers in the United States and 118 full-line stores and 357 specialty stores in Sears Canada (EDGAR). Combining all subsidiaries of Sears Holdings, they employ approximately 274,000 employees across the United States and Canada (EDGAR). Though its size is impressive, Sears growth rate has been negative for several years. According to Santoli, Sears has only a third the number of the stores it had just a few years ago (Santoli). During the last several...