Posted on 12/27/2012 8:46:58 AM PST by MinorityRepublican
While 2013 will be a tough year for retailers due to the tepid economic recovery, a few in particular face a critical 12 months. Their experiences highlight the challenges facing store chains, from increasingly cautious consumers to fierce online competition.
These unlucky retailers are going into the New Year with extra woes: slipping sales, questionable strategies and tight finances—which is why they are the ones to watch, and not in a good way.
Best Buy Co. BBY -1.22% has been plagued by the retail phenomenon called "showrooming," where shoppers examine products in its stores but buy online through rivals. A quarter of shoppers who said they had showroomed had done so at Best Buy, according to a recent Harris Poll, so analysts will be watching to see if it can capture more of those sales on its own website.
J.C. Penney Co. JCP -4.48% has been trying to ditch its image as an old-fashioned department store where Middle America went seeking bargains. But its rapid and radical makeover has left it burning through cash and struggling to attract shoppers, leading to questions about how long the company can afford to stick to its new strategy.
RadioShack Corp.'s RSH -5.29% bet on mobile phones and tablets has backfired. It has sold more of these low-margin devices but is making less money than it did retailing old standards like cameras and computers. Though it staved off a cash crunch earlier this year by suspending its dividend, mounting losses cloud its future.
(Excerpt) Read more at online.wsj.com ...
Sears is the fourth. I can’t figure out how they’ve survived as long as they have.
You’ve got that nailed. A number of already dying malls are going to go under rapidly if they lose anchor stores at both ends suddenly (including the one right down the road from me)
I agree with you about Sears (I’ve taken tools that broke after 40 years and gotten replacements, and I can get parts for tools and things older that my 30 year old daughter - recently refurbished a 20 gallon compressor that was just plain wore out - $100 parts, new one was $250), and you know my feelings on RS. Even if they don’t have it in their store, they online very well.
Subhead and html title both viewable outside they paywall say number 4 is Sears (kind of a shame — Sears is a nice hardware and appliance store that also happens to sell clothes).
I knew we were in trouble when they started to dump their in house brands (Archer, Optimus, Realistic etc.) for name brand items. John Roach started the idea of becoming an electronic boutique after the Video Concepts disaster...
Every large appliance in my home is SEARS. My lawn mowers, too. Why? I can get parts for decades. I’ve become a microwave repairman, refrigerator repairman, a dishwasher repairman, a washer repairman, and a dryer repairman.
My mowers are at least 20 years old and look and run like new.
That’s why.
I was working on an old radio awhile back and need a few caps. I went to RS on an outside chance I might get lucky. The kid at the counter asked if he could help. I said I doubt it. He looked hurt so I told him what I was looking for. I said, “Do you even know what a capacitor is?” To my astonishment he said yes. Of course he lied. And of course they didn’t have the part.
Their lazy, intrusive marketing practice backfired over time to the point where they had to post a smarmy notice at the registers from the company president about why they did it - but they still asked for the data (!?!). The mind boggles. I support free enterprise but some of the decisions made in the boardroom vacuum are insane.
In the end, it cost them more customers than it retained since Radio Shack became synonymous with tedious data entry of personal details.
Radio Shack is now trying to be Best Buy in 10% of the floor space so you can imagine how that’s going. Pricing on many computer accessories, cables, etc. is highway robbery and they are obviously going for the ‘over a barrel’ customer whom they can gouge.
Ah heck - link broken :(
Anyway the Google method works...
I must be old fashioned I love best buy i go in and look and touch the item i want fork over the money and load it it in my truck and take it home Even if it cost more
Circuit City had the right idea how to deal with showrooming. They let you buy from their website and then go pick the item up immediately at the nearest store. Of course, that meant their website had to have real time inventory data for every store in the country - and that is way beyond the capabilities of most retail company IT departments.
Service Merchandise was one of the forerunners in harvesting intrusive information for marketing purposes (phone numbers, home addresses, etc.). Started that in the 70’s I think. They always touted their strict privacy policy. Until the late 90’s when they were careening towards bankruptcy. Then they abruptly issued a policy change and sold everything but the kitchen sink to third parties.
Thank you. You’re welcome :)
Sears.
Me either -- they've managed to do it without me since they pissed me off in 1981...glad to see my personal boycott is finally having an effect, LOL!!
The cashier tried to sell me cables. Didn't need 'em.
The cashier tried to sell me a related component. It was on sale! I had one already.
The cashier tried to sell me another component that I didn't want.
I said, "If you try to sell me one more damn thing, I will turn and walk out and you will lose a $1000 sale. Just take my money and let me go."
He said he understood completely. He apologized profusely. Then he tried to sell me the extended warranty.
It was like the "What" scene in Pulp Fiction. He couldn't help himself. He just had to say the one thing he had been told not to say.
I turned and left and haven't been back since.
I am a huge Lowes fan. I live in the home town of Home Depot but have trouble with finding someone in my local store who 1) knows what I’m looking for or 2) speaks the queens english. Customer service at Lowes is excellent, not so much at HD. Arthur Blank has given Atlanta an awesome football team but his stores have suffered.
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