Sears is trying to change its inventory by offering expensive Rolex watches and Chanel hangbags. Sears is pushing to have high-end items added to its Marketplace through third-party vendors.
Chairman and Chief Executive Edward Lampert says Marketplace is a portion of the company’s website that is comparable to Amazon and Ebay. Lampert is focusing on the e-commerce part of Sears, and likely hopes it will make up for a lack of sales from the company’s physical stores.
“Regardless of how successful they are in growing this business, the bulk of their business is from stores,” Matt McGinley, managing director of investor research firm International Strategy & Investment Group, told The Wall Street Journal. “And if they can’t plug those holes, it’s hard to see how they remain viable as a retailer.”
Sears saw a 9% decrease in sales last quarter and lost $279 million, reports WSJ.
“We’ve grown Sears Marketplace to include more than 85 million items in just more than three years, so while it does include designer items, it also includes literally millions of other items across nearly every imaginable product category at a wide variety of price ranges. We’re focused on serving, delighting and engaging our members while they shop their way,” said Imran Jooma, executive vice president and president, marketing, online and financial services, Sears Holdings in a statement to FOX Business.
However, luxury marketing expert Pam Danziger, says the move is misguided and will confuse shoppers looking for a bargain.
“It just seems totally nuts to me,” Danziger, who is president of Unity Marketing says. “Sears, K-Mart and luxury don’t go together.”
Shares of Sears were up 12 cents to $44.50 on Monday.