As the Sears Holdings Corporation continues to post losses and sales declines despite more and more discounting, apparently the only thing standing between DIYs, artisans, and handymen and a new Craftsman 19.2 volt C3 Compact Lithium-Ion Cordless Compact Drill Driver is an actual visit to Sears.
This year Sears ranked 7th, or last place, in our Customer Loyalty Engagement Index. A ranking like that never bodes well for a brand. To end up last they had to rank lowest on most of the category loyalty drivers, a ranking that always correlates with positive – or in this case, negative – behavior. Sears managed to rank lowest on all of them: Reputation, Value, Merchandise Range. They did particularly poorly when it came to Shopping Experience. So it came as no surprise that they don’t have more store traffic and customers.
Well if the customers won’t come to you, one supposes that the only viable tactic left is to go where there are customers. Unfortunately for Sears, that turns out to be other retailers, and the company has begun a campaign to sell the only robust in-house brands they have through other retailers – like Costco and Ace Hardware.
While this tactic many sell more tools, selling the only successful and attractive brands Sears has at competitors falls into a marketing strategy know as “cannibalization.”
The Maori, an indigenous Eastern Polynesian tribe, have a proverb that goes, “only the foolish visit the land of the cannibals.” These days same notion applies to retailers.