Sears and Kmart were some of the biggest retailers when I was a kid. My mom got just about everything from Sears. For a period of time, she even worked there.
Now we all know, that Sears and Kmart are currently in "hospice care". Why discuss them? Because businesses that fail are important in understanding what to avoid as an investor or as a business manager.
Both stores failed to evolve during their heyday. Walmart came to life and "ate their lunch." This is especially important in the current environment where life cycles of businesses are getting shorter and shorter. Much of it is related to technology.
Each new invention or development has a shorter and shorter life span. Take records. They were around for a long time. Cassette tapes were around a shorter period. CD's were a flash in the pan. In today's environment, if you are not keeping up with the pace of change, you most certainly will fall behind. And, with the current pace, it is very hard to keep up once you fall too far behind. This is exactly why I say that management is the "special sauce" that determines success or failure. The numbers a business produces are just the reflection of management's capabilities.
Lots of retailers are pushing quickly to ramp up in e-commerce as they see Amazon leading the race and striding along. Walmart and Target have really stepped up their game. If they are not with it, they are without!
I'll sure miss those Craftsman tools when they go away. Now, about those "Tough Skin" jeans my mom bought for me at Sears. I was glad to see them go! I still like my Levis.
Sears and Kmart RIP.
