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CASE FOR ANALYSIS

Sears Changes Again and Again

This case details some major structural and market changes that

Sears underwent in the early 1990s. This case shows how dynamic

the retail market is.

1. What were the major changes that Sears made over time?

The major changes involved altering dramatically the strategy

and structure. Martinez sold off unprofitable ventures,

including the famous Sears Tower. He also dramatically changed

the target market, attempting to sell women’s clothes and market

to the “middle-American mom.”

When the CEO changed in 2000, the new CEO made more dramatic

changes, including emphasizing “hard side” appliances and tools

as opposed to clothing.

2. Search for recent articles on Sears that describe the impact

of these changes. How effective have its recent change efforts

been?

Answers will vary. This allows students to see how dynamic the

retail environment is. You could also have them examine how the

competitors respond to the changes that Sears makes.