This past fall Sears Canada was on the front page of every newspaper as the retail giant closed its doors for good. To most people, Sears was considered a Canadian institution that was a regular part of our lives like hockey or maple syrup. Every kid for decades saw the deliver of the Sear's Christmas Catalog as the un-official start of the holiday season. So why did it fail? As a retailer with loyal customers and an established supply chain, the bankruptcy of Sears Canada is a sobering reminder of how complacency can destroy any business, no matter the size, industry or how much it is entrenched in our culture.
Sears Canada, in its early years, was an innovative retailer who used the power of paper catalogs to sell a wide range of products to customers scattered around Canada. Sears Canada was convenient and accessible to all customers in cities and remote communities alike. So how did a business who lead the pack decline into bankruptcy in a decade? There are many factors, but the key one is that Sears Canada became complacent and stopped evolving. Ten years ago retailers didn’t think people would ever purchase clothing online because people need to try on a dress. Now it is estimated that 51 percent of all purchases are made online, and Amazon is worth more than all major retailers combined. People will purchase everything from mattress to groceries - and yes, clothing - online in 2017. Sears Canada’s sales were $2.6 billion in 2016, down from $6.7 billion in 2001. Sears Canada failed to look to the future and didn’t embrace technology until it was too late. As Sears Canada began to realize they weren't keeping up with its competitors because of the rise of online shopping, they had already lost that loyal customer base that had formed over decades. It's the nature of the world - adapt or die and unfortunately for Sears Canada adaptation came too little too late.
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” Charles Darwin
I just couldn't end this article on such a dire note, because I know most of our readers likely don’t have the 1.8 Billion dollars so easily spend on technology engagement. What are independent lumber and building businesses to do to against such a competitor?
It’s a lot like showing up to a gunfight with a knife in your hand - because all you have is a knife. This isn’t going to end well….
Here at OrderEase, we create solutions to empower independent retail businesses, to have the same advantages from technology as corporate entities with deeper pockets. The internet revolution has changed the face of retail - but it also will level the playing field between large and small. Contact us today to learn more about how we can level the playing field.