Sears Holdings company

Sears Holdings company continued to face the challenge of bankruptcy affecting its capacity to continue offering different products to customers for purchase. Retail stores need to have enough funds to stock their store and running the operations of the store; this is because the products that the company has stocked might take time before they can be purchased by buyers for the company to regain its money back (Rosenblum). The challenge of bankruptcy is among the primary reasons that made the Sears Holdings company close down because it lacked the resources that it required to stock its store. The stores of Sears Holdings company lacked the stock that the customers could purchase; therefore the operational costs were more than the profits that the company made. The company had to pay salaries to employees whose work did not have returns on the company.

The company continued to make losses through operational costs hoping that change could occur and the little products that it had stoked could be purchased by the customers (Rosenblum). The company had earlier enjoyed the dominant force in retail in earlier years like in 1970; therefore, it opened that customers would resume purchasing the products that are offered. The company had not foreseen the possibility of financial challenges in order to come up with strategies that would enable the Sears Holdings company to deal with the problem.

The management of the Sears Holdings company had decided to expand the company by coming up with new stores in order to have a wide range of the market. This is one of the causes that made the company have a financial strain (Kelleher). The resources of the company were used in setting up new stores a move that could not generate new income to the company. This resulted in financial challenges because the funds that could be used in stocking the store. The items on the stores reduced significantly making the customers lack significant items that they used to purchase from the store. The customers began purchasing the items in other stores that had all the items that they required.

The expansion of the company hoping to increase the market was not well thought because the expansion did not necessarily mean that the people from those areas would purchase items from the store (Peterson). The expansion made the company use resources that could have been used in stocking the stores that it had initially. The result was that the products that the company had in its stores reduced. The management of the company failed to take responsibility for the challenges faced by the company, its CEO Eddie Lampert once said: “it’s not me, it’s you” denying responsibility for wrong decisions.

“I feel like we’re ahead of J.C. Penney, we’re ahead of Macy’s, we’re ahead of Target, in some aspects of where the world is going.”

The sears holding company began to experience a new challenge of competition that it had never faced before in the late 1990s. Competition from modern companies that had a different model of offering customers the products that they wanted to purchase (Thomas). Competitor companies such as Amazon and Walmart offered convenience to customers by delivering purchases to the premises of the customers. Internet had started to be used widely by the people who opted to purchase items from online stores for convenience. Online stores provided a better deal to the customers of having a wide range of products to choose from and also offered to deliver the purchases to delivery destination of their choice. This offered a better deal than that offered by sears where the customers were not sure to get the products that they wanted to purchase.

The Sears company continued to lose customers to other retail companies hence affecting its operations; the company continued to make losses until 2018 when it closed down. The management of the company had made major wrong decisions that influenced the capacity of the company to continue offering the services to its customers. The decisions made the company close down due to continued loss-making finally.


Work cited

Kelleher, Kevin. “Http://Fortune.Com.” Fortune, 2018, Accessed 11 Mar 2019.

Peterson, Hayley. “What’s In Store For Sears?”. Cbsnews.Com, 2017, Accessed 11 Mar 2019.

Rosenblum, Paula. “Edward Lampert: Sears’ Troubles Are Everyone’s Fault But Mine.” Forbes.Com, 2017, Accessed 11 Mar 2019.

Thomas, Lauren. “Here Are 5 Things Sears Got Wrong That Sped Its Fall”. CNBC, 2018, Accessed 11 Mar 2019.