After getting positive results from its Shop Your Way program,
the beleaguered broad-line retailer,
Sears Holdings Corporation
), has reintroduced its shop online and free pick up from store
facility in order to enhance the shopping experience of its Shop
Your Way members and other customers. This is a big step for the
company toward its strategy of transforming business model.
Sears Holdings intends to introduce this new facility at its
2,000 nationwide locations at Sears and Kmart stores which will
facilitate Shop Your Way members to buy products online and pick up
their merchandize from any of these stores. Sears Holdings was the
first retailer to start free online pick up facility about 12 years
Sears Holdings intends to introduce this new facility well ahead
of the back-to-school season to lure more and more customers, so
that when a member buys products at
he/she can pick up their merchandize at their nearest Sears or
Of late, Sears Holdings has been grappling with deteriorating
top and bottom line performances. However, we commend Sears
Holdings' efforts to improve its financial performance and
liquidity position through various strategic measures. One such
major initiative taken by the company is transforming its business
model, which we believe will help in stabilizing its declining
Sears Holding, which currently sells products through
store-based networks, is looking for opportunities to transform its
business to a member-centric model through its Shop Your Way
program. As part of this remodeling initiative, the company is
heavily investing in its Shop Your Way program while strategically
reducing its store count and divesting its underperforming
The recent move of providing free pick up facility to its online
buyers will make shopping easier for the company's Shop Your Way
members thereby improving its top-line performance. The company's
Shop Your Way program has been a great hit as evident from its
first-quarter fiscal 2014 results. During the quarter, the
company's sales through members reached its highest ever level of
74% of eligible sales compared with 68% reported in the year-ago
The company's strategy of capitalizing on opportunities and
returning to profitability through its simplified organizational
structure and new operating model are noteworthy. Moreover, Sears
Holdings is focusing on cost containment, inventory management and
merchandise enhancement initiatives to inflate margins.
We believe that these strategies have the potential to bring the
company back on growth trajectory but there is still a long way to
Sears Holdings currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks worth investing in the retail industry
The Men's Wearhouse, Inc.
Columbia Sportswear Company
), each carrying a Zacks Rank #1 (Strong Buy).
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COLUMBIA SPORTS (COLM): Free Stock Analysis
SEARS HLDG CP (SHLD): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MENS WEARHOUSE (MW): Free Stock Analysis Report
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