Sears Kmart in 2005, Sears Thesis

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The declining revenues and profits are a symptom of inertia and managerial indifference. The company's latest annual report makes allusions to doing things "the Sears way" but this way is exactly what is failing. Short of overhauling the executive suite, the company needs to reposition itself by making significant upgrades to its stores, modernizing the shopping experience, improving customer service, elevating the product line by eliminating lower-end items.

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In addition to these operational implementation techniques, Sears should also spare no expense at developing a creative marketing campaign to communicate these changes. Consumers that have stopped shopping at Sears need to be compelled to return. The marketing message and means of delivery should be unconventional for Sears, showing that they have truly repositioned themselves into a modern, high-end retail experience.

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