2107 Words9 Pages
Sears Canada is a retailer based in Toronto, ON, with its parent company Sears Roebuck situated in Chicago, IL. The two companies operate independent of each other; however more or less carry the same product lines. Sears Canada primarily has two major merchandising categories, with Home & Hardlines accounting for 60% of the sales while apparel & accessories represent 40% of the sales. Sears has been in the retail industry in Canada for over 60 years, and has built a significant brand name for itself, although many consider it an outdated brand name now in terms of apparel. As such, in light of drastic changes recently in the apparel industry given the influx of American and international apparel companies and the constant improvement…show more content…
However, Sears’ weaknesses in apparel might have a much more detrimental effect on its future, far outweighing its strengths. Sears market share in apparel is on the decline in every major category, as can be seen in exhibit 1. If we say the needs of Sears customers in the apparel market, which is a new emerging demographic of more youth oriented consumers, is focused on trendy styles, then Sears has a significant weakness in that it is not among the top choices amongst the competition by any means. In the high end market, competitors such as Holt Renfrew, Harry Rosen, The Bay (which has taken back lost market share under the guidance of CEO Bonnie Brooks) and the impending arrival of Nordstrom’s really have the clientele loyalty and market share, leaving no room in this market for Sears. In the discount market, Wal-Mart has the obvious market share lead by far, and we cannot underestimate the impact Target will have when it arrives. Reports suggest Sears and Wal-Mart have the most to lose when target arrives , as can be seen in exhibit 2. 20% of survey respondents feel Sears will lose “a lot” of sales when Target opens, 50% feel that Sears will lose some sales, and over 70% feel Sears’s sales will be negatively impacted by Target. As we know, Sears has seen sliding sales since 2006 and Target Canada will definitely add to that. Again, Sears really has no room in this market either. When one factors in other competitors that the younger population are

More about Sears

Open Document