Life is literally just a roller coaster ride, sometimes it is up and sometimes it is down. It is just like that in the business world most of the times. There are moments when the business seems to be booming for a few years, but then the world starts to change, they have to adapt and if they don’t then they will be left behind and would end up closing for good. Strategic moves and creative minds are what a business needs but it is definitely easier said than done.
Things definitely changed over the past few decades, business have to make sure that they adapt into the change or they will surely be left in the past and won’t be able to keep up. Unfortunately, some of the biggest business back in the day failed to do so and now they are slowly closing right before the people’s eyes.
It was 125 years ago when a retail store opened and was called Sears. It was known back then as the “everything store”, and was used to be the largest retailer in the entire country. However, it was in the 1990s when they lost to Walmart, but in 2007, they still managed to hit their highest shares in their company’s history, with $195 over a $4 trade. However, despite that, the decline on their market capital has been reflecting them and it is what Wall Street was worried about, because that is something every business could come back from and turn things around.
In fact, their shares actually fell into the ground after losing 40%. This the caused the Sears Holding Corp. to announce the list of 46 unprofitable stores all over the United States. These stores is said to close this coming November, so the closing sales will begin at the end of August, which will serve as their liquidation. The said department store chain has dropped another 39% from their stocks, so it is now a total of 89% they have dropped this year alone.
125 Years Of Service
This wasn’t a big news, since a few months ago, they have already announced that they would be closing almost 80 stores all over the United States next month. It turns out that CEO Eddie Lambert thought that they could just make it a small business to be able to get their profits back. In an interview with CNBC, he admitted that he just could not let go of Sears yet. On their recent shareholders meetings, he found a little light when he saw a way for them to get a bit of profit during the most recent quarter. Some thought it is good but then some also thought it was already too late.
He explained how he tried so hard to keep it going, how he tried to make sure that each and every store are able to make profit so they could stay open for business. His goal when he was appointed chef executive officer was to make it as a “performance-oriented” company. “We intended to build on the historic strengths of both Sears and Kmart, while overcoming some of the more recent weaknesses”.
In his interview, he admitted that this last few months was the times when things became extremely difficult for the company, making it impossible for them to turn things around. Their consumers are becoming more and more price sensitive and have been shopping online, which then leads to them not wanting to go out and shop to the stores anymore because online shopping is only one click away.
Some of the consumers on social media even got the feels with the news of Sears going out of business soon, some of them said that they grew up knowing how much their parents always love to shop there, until competition got more intense with Home Depot, Lowe’s and Costco came around.
Sears was originally a watch company with over 440 stores all over the country in the 1880s. However, it was Robert E. Wood, who is widely known to be the “Father of Sears”, who actually made the expansion and turn it into the retail store that everyone goes to for more than a hundred years. They opened the first Sears retail store in the 1920s, wherein department stores became such an urban retail venue.