Sears.ca Looks To Be Promising

Of course, not many of us consider Sears Canada to be much of a contender in the retail world these days. Last month, the company said it will cut down 200 workers from its Canadian headquarters in Toronto amid the recession crunch. However, Sears is one of the few leading retailers that caters to the 35+ Canadian consumer online, there aren’t many Canadian department stores that do that.

Last week, Sears Canada released their 2008 annual report, in which, despite overall revenues falling to $5.733 billion from $5.845 billion in 2007, the company saw an 18% jump in online sales from sears.ca. This is actually quite surprising as I wasn’t aware that they actually had an online shopping site. It turns out they were one of the first department stores to fully launch online in 1998. Since then, they’ve had repeated reports of positive growth over the years. They also clearly have a very good grasp of the e-retailing, so much so that their email subscribers count over 600,000. Also, this interview with the Canadian Marketing Association drives the point home that Sears Canada’s National Manager of e-Commerce, Mike Duggan, knows what he’s talking about, as opposed to The Bay’s Jeff Smith (who barely says two sentences).

What are the biggest obstacles facing Canadian retailers once they go online?

It is critical in an Internet environment to continuously ensure that usability matches customer expectations, as well as their online capabilities. The behaviour profile and level of experience of the user base should dictate how sophisticated your website should be from a technology and functionality standpoint. If customers are not interested, or worse, unable to navigate through your site, conversion rates and repeat traffic will suffer. It is important to develop processes to regularly take the pulse of your customer base.

Mike Duggan

Sears Canada’s online site is a one-up on The Bay, who is still in the midst of restructuring  (at least we hope) itself through new management by Bonnie Brooks. That department store could definitely benefit from an online site to drive up sales if done correctly.

Whatever formula Sears is using, it’s working. Hell, it’s got me convinced to peruse through its digital archives for goods. Their outerwear selection is actually quite nice, especially with the double-breasted coats they have. If Sears can just work on getting better name brands, polish up their fashion inventory, and of course have excellent customer service, it could still stand a chance to survive in this tough retail market.

And what of Holt Renfrew? The Bay? Ogilvy? Canadians are waiting for you online. Especially this one.