Thursday, August 1, 2013

Sears to Sell Luxury Goods


 
Rolex watch $32,995.00
 

Recently Sears announced that it will be selling luxury goods on its Marketplace website. Since 2010, Eddie Lampert the CEO of Sears has wanted to sell more luxury goods such as watches and handbags. Now this is kind of a turnaround for Sears since it’s known for household goods at reasonable prices. It appears that Sears is now considering marketing to someone other than its target market.

 

Admit it, you've bought an appliance from Sears
 
 
While this seems a little odd it might not be that far of a stretch for Sears. While Sears has sold household goods for decades they’ve always been very high quality goods. They have really good appliances; in fact my washer and dryer are from Sears. I also own a vacuum cleaner that is awesome and was quite expensive. I originally purchased these appliances from Sears not only for the price but the outstanding quality.

 

Sears stores are in every mall in America
 
 
Don’t kid yourself, appliances can cost a fortune and good appliances that last can be outrageous. Ask anyone who has recently remodeled a kitchen. What makes this an unusual fit is most of Sears’ clothing and jewelry has been on the affordable end of the pricing spectrum. They aren’t known for fancy, mostly serviceable. Back to school sales and durable jeans have been the mainstay of consumers who shop at Sears. The question really isn’t will the consumer purchase a Rolex watch from Sears but rather will Rolex cheapen their brand by selling at Sears?

 

Rolex has boutiques in every country
 
 
Rolex is known for its high end boutiques and status enhancing watches, by selling at Sears, a known home goods retailer, will Rolex be cheapening their brand? I think this potential partnership speaks louder about Rolex than it does about Sears. Anyone who is a retailer would want to sell high end goods when possible, Sears certainly has the volume potential, but does it make Rolex seem lower status or desperate by selling at Sears. The proof is in the pudding and we will have to see if this pairing is advantageous and to whom. Time will tell.
 
Will the lighting be good at Sears?

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