Do you think Lands End goods would sell in Kmart stores? What would it take? How could
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How could Lands’ End do better in Sears stores?
Lands’ End was a longtime catalog seller that had built a strong following with its high-quality items such as cashmere sweaters, its wide range of sizes and assortments, and its high level of customer service. It was based in a small Wisconsin town, and its most direct competitor was L.L. Bean, also from a small town, but in Maine.
Sears bought the company in 2002 for $1.9 billion, hoping it would be a cornerstone brand and beef up apparel sales and draw customers who were buying appliances and other non-clothing items. Lands’ End thought the exposure to potential customers in Sears’ 870 locations would be healthy. The reverse was more the case. The wider exposure weakened Lands’ End exclusivity, and it was often poorly positioned “in between men’s suits, snow blowers, tools, denim and work clothes.” Charlie O’Shea, an analyst for Moody’s, said, “It hasn’t done what I think Sears wanted it to do. The general idea was to take the higher-income demographic, the hard-line appliance shopper, and have them walk across the store and buy apparel.” But this was not happening enough.
Kmart’s takeover of Sears caused more consternation for Lands’ End. The blue-collar image of Kmart seemed incompatible with the quality image Lands’ End had built up over the years. Kmart had to wonder, too, whether Lands’ End merchandise would sell in its stores, or simply take up precious space better used for other goods. Instead of the synergy 2 + 2 = 5 effect, with the total result better than the two separate operations before, it seemed more a 2 + 2 = 3, with the combined result worse than the two separate operations were before.
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