Sears Holdings Corporation SWOT and PESTLE Analysis

Strength

1. Strong multi-channel integration: As early as Dec 2010 Sears was ranked third in overall web traffic for a multi-channel store retailer and has a strong multi-channel integration which offers convenience added to shopping for customers. It has the buy online pick-up in store helps the customer to place order online from a mobile device and get it the same day. It eliminates the wait to receive the products.

2. Innovative leader in retail space: Sears have integrated technology well with its processes which have allowed its consumers to connect well with the store associates for the know-hows of the product details, transactions etc. This is another level of retail integration with digital and physical shopping experience. Sears has multiple stores where in-store associates have been provided with the handheld devices where they can get a ping on their device when a Get advice question comes, allowing them to add response which signifies customer service is the priority.

3. Offers a wide range of products: Sears offers a wide range of products ranging from home merchandise, appliances, books, jewelry, apparel, automotive and services. It is one of the United States largest home services provider with more than 14 million service and installation calls made annually.

Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

1. Strong compliance standards for suppliers: A socially and legally responsible corporation needs to implement strong compliance standards for suppliers, so that there are no legal, ethical or social violations. Supplier compliance standards is a critical pillar of Sears’ supplier accountability programs and it covers policies such as protection against child labor, forced labor, discrimination, fair wages and healthy workplace. The suppliers are mandated to follow the same and Sears conducts random audits to ensure proper implementation.

2. Lawsuits from suppliers over contract terms: The US retail sector is facing a collapse with several retailers going bust in 2017. In case of bankruptcy vendors generally fall under non-secured creditors and may face bad debts. Vendors in fear of the same are delaying product deliveries and are renegotiating contracts. Sears has piled up losses of more than $10 billion over the past six years and has more than $4.2bn in debt as of January 2017. Suppliers are apprehensive about the viability of the company and Sears is facing lawsuit from its major supplier One World over their Supply Agreement. It is demanding payment terms as short as one week. Reduction in supply of products from One World will further impact Sears’ business as it will not be able to effectively cater to its customers.

Environmental

1. Initiatives for sustainability and climate change: Environmental sustainability and climate is critical for consumer-centric organizations like Sears. From activities such as product sourcing to its internal operations to the recycling services, Sears helps its customers in environmental sustainability. The retailer has sold more than 4.6 million ENERGY STAR certified products through Sears and Kmart in 2015 which has helped to save more than 270 million kilowatt-hours of electricity for its consumers. The retailer also recycles a variety of materials used throughout its operations to reduce the environmental impact. Sears is also striving towards a goal to reduce electricity consumption and associated greenhouse gas emissions by 30 percent by 2020 when compared to 2008 benchmarks.