Most data showed that store traffic was slow and e-commerce was fast. This new normal in retail pushed Sears (NASDAQ: SHLD) into Cyber-Monday with large discounts, some as high as 25%, as it began clearance sales. There is no explanation for discounts this large except that Sears has to sell off inventory which it assumes will not sell later in the holiday season.
Sears in particular needs to clear inventory. Its lackluster results and forecast drove its stock down. Many investors view it and sister company KMart as little more than a collection of real estate holdings strung together by CEO Eddie Lampert. Sears Holding’s shares are off 34% this year. Wall St. blamed bad management, warm weather, Amazon (NASDAQ: AMZN), other competition from troubled retailers like J.C. Penney (NYSE: JCP), which are also in a position in which they have to have a good season to maintain their claim to retailer relevancy.
Sear’s Cyber Monday plans offers “free shipping” for orders over $35, which is not distinct since every other retailer has aggressive free shipping deals. What Sears may fairly say “North Pole approved appliances” will catch shopper eyes, the phrase may not trigger many sales. The best deals among those Sears offers are 20% off clothing, shoes and jewelry. In some cases the discounts are greater than that. The prices on fake Christmas trees are are high as 50%. Discounted inventory at Sears.com is dominated by appliances, sports, and consumer electronics.
Sears used to own the demographic middle of department stores, wedged between Walmart (NYSE: WMT) on the one side, and Macy’s (NYSE: M) and Nordstrom (NYSE: JWN) on the other. People walked or drove from store to store, based to some extent on their income. Amazon and e-commerce in general has made selecting items democratic. Voyeurs can look at items too upscale for them to buy, and shop “store to store” without leaving their homes. Glued in front of their PC or smartphone screens, the shopping experience becomes endless and easy.
READ MORE: Retailers Hiring The Most For The Holidays
“Clearance” cannot take away from Sears what it has already lost. Retail store brands mean less and less. Cyber Monday is for winners; and this time, the consumer wins.
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