sears on the rocks

Influx Insights — 2007-12-02T04:08:36Z

Back in March, Influx suggested the charismatic Mr.Lampert might lack the skills to turn around the ailing Sears brand.

Now Fortune magazine has written a detailed story on the topic and seems to agree.

"The litany of problems at Sears looks to be getting worse, not better. Sears is neglecting many of the basic strategies that attract shoppers, including renovating stores, stocking the right merchandise and taking timely markdowns. Though a pullback in consumer spending has compounded the company's problems, people who know Sears well say many of the company's troubles are self-inflicted. (Neither Sears nor Lampert's office responded to questions for this story.)

Conversations with several of Sears' suppliers, who spoke on condition they not be named, paint a picture of a company adrift, hobbled by high turnover in the merchandising ranks, and veering from one idea to another. "Sears does everything it can to chase away the customer," said one of its apparel suppliers. Company executives, he said, have become disproportionately focused on the numerical side of retailing, obsessing over profit margins and inventory turns, at the expense of larger merchandising issues - such as stocking products that consumers want to buy."

Posted by Ed Cotton

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sears on the rocks