Sears Rethinks Marketing Amidst Revenue Decline

Like many U.S. retailers, Sears faces a challenging present and an uncertain future. In 2005, the venerable chain merged with Kmart, but the union has not been an easy one. Parent company Sears Holding, Hoffmann Estates, Ill., which oversees approximately 3,800 stores across the U.S. and Canada, is struggling with stagnant sales, falling profit and consumer apathy. For the fourth quarter ended Feb. 2, Sears Holdings' net income was $426 million, down from $811 million during the same period in 2007. Comparable store sales fell 4.5%. Comps at Sears-only domestic stores declined 4.0%. Revenue dropped to $15.1 billion from $16.2 billion in the prior year.

In a recent letter to shareholders, majority shareholder and chairman Edward Lampert wrote, "The key is to improve the productivity of [our] investments." To this end, the company has been restructuring its marketing team. This month, Robert Raible, a former vp-marketing at California-based department store chain Mervyns, joined Sears as vp-integrated marketing communication. He takes over many of the duties of Rebecca Case, vp-marketing, advertising and creative, who left Sears after seven years.

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