Why are Sears stores Closing? Here's my take on why the future for Sears looks bad.
The Numbers:
According to the USA Today, Since 2010, Sears has gone from more than 3,500 physical stores to 695 US stores. Sales at Sears stores dropped 10.3 percent in the final quarter of 2016 when compared to the same period in 2015.
The Question:
As the number say 2,805 physical stores have closed in the past years. How can a major company like Sears have closed so many stores within five years?
My Take: Online Shopping
Sears used to be the place to go to purchase appliances. Now you have online websites like Amazon, EBay, Overstock and retailors like Costco, Home Depot, Lowes, selling appliances online, you get the point. The competion for selling one of Sears must sold products has increased. This has led the consumer to compare prices amongst all the websites that sell appliances. For sure this has put a dent into the sales of Sears.
Online shopping may be the way to go now-a-days. First of all who likes wasting time at the stores? You get instant information about the products (probably more detailed information than you get from a sells rep) and instant access to purchase the item. If you want to safe some time order it online, the only con is you'll have to wait a few days for the item to arrive.
Thats my take on why I think online shopping has put a dent in Sears sales. Let me know what you think.