Retail Observer

RETAILOBSERVER.COM JANUARY 2017 48 F or the last several years, Sears has been in a challenging position, with revenues down significantly and profits non- existent. Recently, the newest batch of store closings was announced and the horizon doesn't look much better according to analysts. Stocks in 2007 for the retail giant were $191 a share, down to $82.55 in March 2012, and as I pen this article, Sears is trading at $9.12. The last five years have been increasingly challenging for the retailer that many of us grew up with, and despite Eddie Lampert's valiant attempts, the future doesn't look bright. As we look at Sears, there are many lessons we as retailers can learn. • Be bold. The mega-retailer has been willing to take big gambles and try complex new ideas as a way to regain market share lost to Target, Walmart, Home Depot and Lowes. From trying out new store concepts like Sears Essentials, which tried to jointly appeal to Sears and Kmart diverse customer bases, to the Shop Your Way membership concept, Sears has had no shortage of big ideas, and a willingness to try new things. Sadly, none have yet produced the revenue results they were after. • Convenience is king. Convenience is a commodity and something we need to pay more attention to. Today, we've gotten an Amazon mentality. Consumers want the speed and convenience offered through digital retailers; ordering something online and having it delivered the next day. We've gotten accustomed to this speed, and subconsciously this has become our standard for delivery. For traditional brick-and-mortar based retailers, we must look for ways we can offer convenience to stay relevant. Many of the big boxes have implemented a 'buy online, pick up in store' strategy. I've even tried this a time or two, but to be honest, I believe customers still want to see big ticket items first hand before they hand over a credit card. Determining your own ways to bring the value of convenience to your market should be based on who your primary target customer base is. For most of us, we know who our primary decision maker is, but we must ask ourselves if we are appealing to her. Have we made every effort to win with how we can help save her time, or meet a need like comfort, peace of mind or safety? • Service after the sale. How do we get repeat business? It's largely based on we handle everything after the payment slip is signed. How fast can the item be delivered? Is it a 'white-glove' experience that they want to tell their friends about? Why not? Retailers today must be innovative and helpful to keep customers coming back. It's not always about the lowest price. Do your customers feel like they know you and vice versa? Consider how a monthly email with product tips and service reminders would be received by your appliance customers. What if you auto-enrolled customers for water filter replacements? Yes, you'd see incremental revenues, but your customer feels taken care of, well-beyond the sale. • Digital drives in-store. We know consumers today are research- ing multiple websites before they even step into a brick-and- mortar to purchase a large ticket item, therefore, retailers can't just watch competitors' pricing, hoping to undercut them and be the victor. Does your independent website look just as sharp as your nearest chain? Are you providing consumers with the information needed in order to make their purchasing decisions? With more and more shoppers using smartphones, your website must work just as well on mobile as it does desktop. And, it should have easy to access product and customer reviews, product details and videos, current pricing, and available rebates. We all recognize that retail today is more challenging than it's ever been, and we can only surmise that it'll continue along this trajectory. But, in my opinion, there has never been a better time for independents to compete with big box than now. Digital, although complicated and ever-changing, has truly leveled the playing field for us in terms of reaching consumers. While Sears will continue to face challenges as they look to regain their profitability, the time is now for independent retailers to gain some of this market share. Be bold, value the convenience factor, think service after the sale, and do more digitally. Amanda Evans Appliance Trends Amanda Evans, Director of Marketing, MEGA Group USA RO EYE TOWARDS SEARS AND WHAT IT MEANS FOR THE INDEPENDENT CHANNEL

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