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Sears has announced plans to spread holiday magic in its stores. It remains to be seen whether consumers will open their wallets and open their wallets between Black Friday and Christmas Eve.
Peter Boutros, brand manager for Sears and Kmart, acknowledged in an interview with CBS MoneyWatch that this beleaguered retailer faces several obstacles. At the top of the list is the filing for bankruptcy last month, which could lead some consumers, sellers and even employees to believe, wrongly, that the entire chain is closing, he said.
Sears Thursday has announced plans for Black Friday, which provide for an opening at 18 hours. on Thanksgiving and closing at midnight. The stores will reopen on Friday, November 23rd at 5am. To attract customers to its doors, the company offers sales at Black Friday, such as a $ 890 Kenmore French door refrigerator at Sears, a 55% discount, and an artificial $ 15 Kmart tree, down regular price of about $ 50.
Retail has become more competitive than ever, with physical stores facing growing Internet competitors such as Amazon. Years of underinvestment have left Sears in a difficult position as the holidays approach. Not only are salespeople and employees reassured that the business is still in business, but the retailer must convince buyers to give it another chance, just as healthier stores like Target and Walmart are offering their Black Friday specials.
"We have to jump many years without investing in the brand, so people know that Sears and Kmart are relevant again," Boutros said. "We have to reach out to customers and get them to try us again."
He added, "We do not wear pink glasses."
Since the bankruptcy, Sears has obtained the commitment of suppliers to continue supplying its stores, which means that buyers will find shelves well stocked during the holidays, he said. The company's decision to close 149 stores will allow Sears to "redirect its resources to stores and the call center," he added.
"We are not on our heels, we are on our guard before the holidays," he said.
Challenges in store: Black Friday or Dark Friday?
The shops are refreshing with the display of holidays. A visit to a Sears home in South Burlington, Vermont last Thursday uncovered a store that lacked holiday signage, although some holiday merchandise, such as socks and holiday jewelry, are on display. Sears said the signage would go up in a few days.
The stained carpets and scuffed walls of the store have suggested a more important revision, but Mr. Boutros said the company would not restructure before the holidays, for lack of time.
Black Friday could prove to be an important test to find out if it can compete with bigger competitors like Walmart and Amazon. Sears has yet to unveil plans for Black Friday, but has announced plans to sneak up on Black Friday 's "dumbbells" – or at a very attractive price to attract consumers – members on November 1st. 18 from 16h to 21 hours
Nevertheless, consumers can expect more from their holiday shopping experience, said Neil Saunders, an analyst at GlobalData.
"The condition of some stores makes Sears a totally uninteresting place, which is not what consumers want during the holidays," Saunders said. "Sears will have some work to do if they want to compete."
Some consumers may also not want to shop at Sears in the light of bankruptcy, Saunders said. First, some consumers may think that the store is already bankrupt because of the news of its bankruptcy. Second, they may be concerned about their ability to return items or whether Sears will still be there to honor the guarantees, he said.
"Some buyers will not want to buy products at Sears, especially expensive products, for fear of not being able to return them, or the warranties will not be valid if the company ends up losing business," he said. he declared.
Nostalgia boost?
The bankruptcy sparked a wave of nostalgia and support for Sears, as sites saw "a sharp rise in pedestrian traffic and sales," Boutros said. Sears launched a campaign called "Thank you for the love" to recognize the support of buyers.
"For us, this is what our customers and our members said:" We will stay with you, "he said.
Part of the social media campaign for Sears and Kmart, reflecting customer support following the bankruptcy of the company in October.
Sears
But nostalgia can not go that far, warns Saunders. "To convert that into sales, Sears must offer people what they want at the right price and in the environment in which they want to shop," he said. "There is no evidence that consumers are sympathetically buying from a distressed brand.If the ingredients of the retail offer are not correct, sales will not be sold."
Sears and Kmart's vacation plans include Kmart's Toy Book, which will be mailed or distributed in newspapers to 10 million households, and events such as its "Unsung Heroes Event" from Nov. 8 to 12. Law enforcement and security officials will benefit from an additional 10% discount. Kmart also offers free photos with Santa at each place every Sunday between Thanksgiving and Christmas.
With a strong economy and a strong job market, more consumers will feel happy during this vacation period, increase holiday expenses by 5% according to the consulting company PwC. Whether or not Sears can weather this period of slowing sales remains an important issue, but that will be critical to its success, Saunders said.
"Given the strength of the economy and the fact that Sears comparable store sales have been declining for years, it's not unreasonable to expect some growth," did he declare. "The second thing Sears needs to do is demonstrate its operational profitability – it can be difficult at the group level, but they have to show that at least some stores can make money."
