Please use the attached documents to complete the assignment. Please read everything before starting the assignment. If you have any doubts as to what the assignment is asking for email or call.
Part 1: Recently, Sears Holdings (consisting of Sears and Kmart stores) and Macy’s announced the combined closing of over 200 stores and the layoff of approximately 10,000 workers nationwide.
Do some research either on Sears Holdings or on Macy’s. Be sure that you visit IBISWorld, and that you do some research on the Department Store industry.
Then, answer the following:
- Describe the specific strategies that you believe Sears Holdings or Macy’s have followed in the past 2-3 years.
- Next, discuss why the strategies of these companies appear to be failing (why are both companies now needing to close so many stores?). Are the strategies of the company you selected flawed? If so, why? If not, what else is the cause of the multiple store closures on the part of both companies?
Where did these retailers go wrong? And why? What could they have done differently? Why is it that some organizations like Target thrive while others do not? What are you learning from our readings and your own research?
Part 2: Contrasting Strategy Success with Strategy Failure
In contrast to Sears and Macy’s, Target department stores appear to be thriving. Has Target pursued a more appropriate (or correct) strategy than Sears or Macy’s?
If yes, what do you believe is the difference between their strategies (why has Target been relatively more successful)? If no, what then, is behind Target’s success? Be specific.
Be sure that you respond to the analyses posted by Christopher Bentz
We have all heard the news that Macy’s and Sears have been losing money and closing stores for a couple of years now. Growing up, my family frequented both they were staples in our shopping. I’ll assume it was this way for many Americans the past two decades. So, what went wrong? As we study both companies, it seems this started long ago and spiraled out of control. Retail lives and dies by leadership. Poor leadership management is probably the root cause of both companies shutting stores down. Sears had mismatched leadership that didn’t seize the opportunities to change with the times. Macy’s made numerous bad decisions and never got around to streamlining their operations with the Polaris Plan.
The primary strategy for Sears was cost-cutting, and they did it so aggressively that earnings began to drop. To make money, you have to spend money, and you can’t cost-cut your way to success. Sears was only paying 91 cents, upgrading to every square foot, whereas Best Buy, a competitor, spent $15.36 for every square foot. This resulted in a severe drop in sales and overall store closing between Sears and Kmart.
Macy’s strategy to expand so fast made stores and resources stretched thin, resulting in messy and unappealing merchandise, and customers took note of the declining quality of customer service. The issue with the fast expansion is the overall products it sells and the environments in which it sells them are not aligned with what consumers want. Macy’s growth and failure to build its brand assortments across apparel, home, and beauty strategy resulted in a significant decline, unlike Target that did do that and is very successful today.
Both strategies failed and resulted in multiple stores closing across the US. The plans are flawed because they were unable to take into account what the customers want. Digital integration, apparel and products they want, and an overall new and improved look, not the messy out-of-touch stores we see now. These are only two issues between the two stores, but it highlights how leadership failed the companies and the results of those failures. Both companies have opportunities within all this, though. Both need to focus on e-commerce, target younger generations and focus on emerging markets while closely looking at leadership.
Type of service: Academic paper writing
Type of assignment: Essay
Number of Sources: 2
Academic level: Junior(College 3rd year)
Paper format: APA
Line Spacing: Double
Language Style: US English