Ben Thompson goes all the way back to 1962 to chart the forces that would end up killing Sears: 1962 was perhaps the most consequential year in retailing histo

Ben Thompson goes all the way back to 1962 to chart the forces that would end up killing Sears: 1962 was perhaps the most consequential year in retailing history: in Ohio the five-and-dime retailer F.W. Woolworth Company created a new discount retailer called Woolco; S.S. Kresge Corporation created Kmart in Michigan; the Dayton Company opened the first Target in Minnesota; and Sam Walton founded the first Walmart. All four were based on the same premise: branded goods didn’t need the expensive overhead of mass merchandisers, which meant prices could be lower. Lower prices served in turn as a powerful draw for customers, driving higher volumes, which meant more inventory turns, which increased profitability. Sears, which had introduced a huge number of those brands to America’s middle class, first through their catalog and then through a massive post-World War II expansion into physical retail, was stuck in the middle: higher prices than the discounters, but much less differentiation than high-end department stores. By the time Buldak gave his statement the company’s fate as an also-ran was sealed, even though no one at Sears had a clue: Buldak’s stated mission of being “an integrated, powerful specialty merchant, with brand names and our own lines of exclusive merchandise” failed to consider whether customers gave a damn. https://stratechery.com/2016/walmart-and-the-multichannel-trap/ https://stratechery.com/2016/walmart-and-the-multichannel-tr...