Sears Should Stay At Home Essay

Sears is a retailer in Canada that opened in the country in 1952 and has been operating for 64 years. In the article “Sears Canada Not Likely to Die While It Still Has Real Estate to Sell” explains that, despite Sears decline in revenue, the company can remain operational by cutting costs and being able to sell practicable real estate (Hollie Shaw). Sears Canada is able and needs to sustain their retails because it allows landlords to purchase for their real estate under market value. However, Sears leases are only attractive to landlords until the company ceases operation. If the company does stop operations the leases would become liabilities and be taken back by landlords because of legal obligations (Shaw). The company will continue their
In the past decade, Sears has been downsizing the company, an act of laying off employees, due to the fact that it had to compensate for declining revenue. The problem is that Sears Canada has projected too large of a target market, therefore their wide variety of product lines do not interest a particular consumer (Ebert, Griffin, Starke, and Dracopoulos 286). For instance, the company’s product line is known to be aimed at females who own a home, however, Sears caters to demographics that are not interested in the store because of their emphasis on female shoppers. A solution that can increase revenue and avoid the company using the break-even point is to decrease their target market. Sears Canada with their reputation as a retail store that satisfies the wants and needs of female homeowners should project their products towards that demographic. Thus, the company will be able to generate more revenue by attracting more customers of their target market, eliminate the cost of housing products that do not interest the customers, and to return to a profitable business. The future of Sears Canada is dependent on if the company is able to hit or miss their target