E-Commerce Effort Leverages Core Strengths - Sears Online - Brief Article

DSN Retailing Today, Dec 11, 2000

Many leading companies lay claim to a dedicated effort in bricks-and-clicks retailing, but at Sears Online it is truly a top priority. Since Sears Online launched-an-information Web page (Sears.com) in 1996, great progress has been made in the company's e-commerce efforts. From the introduction of Craftsman tools as its first on-line product category in 1997, Sears.com has upgraded to more than four million skus, ranging from dishwashers to diaper dispensers.

As with all companies trying to capitalize on the Internet, Sears faces numerous challenges--the most prominent being price integration. The company has accepted that full integration with on- and off-line pricing is not realistic, and therefore has had to make careful decisions as to which off-line channels should be included.

Despite these challenges, the company's on-line strategy has shown promise, thanks in large part to a series of consistent, no-nonsense measures aimed at leveraging the retailer's core merchandising strengths. They include:

* The steady, deliberate rollout of seven principle product channels: Appliances, Baby Me, Computers, Electonics, Lawn & Garden, Tools and Wishbook, an abbreviated version of the company's renowned catalog.

* The launch of Internet-compatible in-store kiosks.

* The development of high-profile marketing alliances with properties such as Bob Vila and America Online.

* The integration of state-of-the-art Web site features, including on-line access to the company's HomeCentral services division.

Last year, Sears was one of the first retailers to place kiosks in stores to emphasize the union of bricks and clicks, and recently it installed a computer center called Screenz@Sears in its Greendale, Wis., store, allowing customers to read e-mail, take computer classes, prepare presentations for school or business, receive and print digital photos, and fax and scan documents.

Last month, Sears and America Online launched a series of in-store and on-line promotions, including new ways for consumers to sign up for AOL service and pay for membership using their Sears Card. Sears Online has also formed an alliance with BobVila.com, intending to capitalize on the expertise of Bob Vila. The partnership has created an on-line resource to assist people during the building and remodeling process.

In the recent months, Sears.com has implemented several new site features. In October, it announced its improved on-line scheduling capability, which allows customers to arrange for service and repairs to appliances and heating and cooling systems. This real-time online scheduling system offers customers a seven-day window to select a date and time for service.

The company also implemented an on-line bill payment service, as well as on-line applications for the Sears credit card.

In August, Sears Online added five new product categories to the site, giving it a step up in terms of competing with other on-line retailers. Home electronics, computers and office equipment, small appliances and cookware, baby products and school uniforms joined existing offerings of major appliances, tools, lawn and garden equipment, parts and, most recently, fitness equipment.

According to chairman, president and ceo Alan Lacy, the company is pleased with the progress of Sears Online and plans to continue the buildout of infrastructure and offerings by adding additional categories, enhancing site functionality and maintaining a high level of readiness for the holiday season.

The on-line channel has become a growing influence for Sears. Lacy noted that according to company research, more than 10% of appliances purchased at a Sears store are first researched at Sears Online, which accounted for approximately $500 million in sales in 1999. According to a Sears spokeswoman, that figure is expected to triple this year.