The world as we know it is changing. Former retail giant and shopping mogul Sears, is on its way out. After filing for chapter 11 bankruptcy, all hope is lost for the former titan of the industry. Why? The answer is simple: Amazon and Jeff Bezos. With Amazon’s easy to use interface and seamless shipping tools could taking trips to the store be a thing of the past?
Sears has been on the decline since 2007 Eddie Lampert, hedge fund manager who oversaw a merger between Kmart and Sears in 2005 and then became chairman:
“Its collapse in recent years has been startlingly rapid, even as many big retailers struggle to survive Amazon’s innovations. The firm’s stock market value has crashed, from $30bn in 2007 to $69m on October 17th; it is carrying almost $5bn in debt. Revenues were $16.7bn last year, down from $50.7bn in 2007, and the company has not been profitable since 2010. Of the 3,418 American stores it had in 2007, only 866 remained by August this year.” Many people shake their heads, wondering how Sears didn’t continue to thrive, and the answer is simple: they did not innovate. Their lack of innovation left just enough room for companies such as Amazon to come into the space, and topple the titan.
Jeff Bezos has created a seemingly flawless online shopping interface in Amazon. The website is easy to use, shipping isn’t a problem, and they have everything. Not only do they carry anything anybody could ever wish for, they make it so easy, even my grandparents are using it. Their “one click shopping” tool makes going to the market seem like such a chore. Literally, all the consumer has to do is select their items, click one button, and poof… your items are being delivered to your doorstep within a few hours. While convenience is key in Amazon’s success, they have stripped the personability from shopping. Amazon is taking away the opportunity for people to enjoy the little things in life such as talking with the butcher, feeling which avocados you want, and catching up on the latest drama with the People Magazine next to the cash register. The next generation will never know what it is like to take a trip to the grocery store, or pick out your bed sheets at Sears.
‘Sears used to be the gold standard of selling,' says Bob Phibbs, CEO of consultancy the Retail Doctor. Now, with Amazon now partnering with Sears in their tire department, it is obvious - Sears is on its last legs. ‘This partnership with Amazon is a new low, allowing customers to buy products online from an entirely different retailer and pick it up in-store without having to interact with employees. Making it easier to buy tires is a weak attempt to win over Amazon’s customers, because Sears has so few of their own. This isn’t a turnaround strategy. It’s a distraction.’
Sears is on a rapid pace to destruction. Despite recent efforts to rally, it seems impossible. The most recent partnership with Amazon seems more like an attempt at a distraction rather than a solution. Sears had an incredible run, from running the world of retail to being at the bottom of the barrel - their time has come. They simply cannot compete with the shopping titan that is Amazon, nor can any other source of retail distribution. Amazon runs our world. But the question remains: is personability in shopping a figment of the past? Will shoppers of the future have a ‘local’ supermarket? The future of the aforementioned appears grim with Amazon in the way.
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