Retailers are battling it out to see who can be perceived as offering the biggest bargains, but Sears has decided that while it needs to talk value, it simply isn't going to win by trying to out-discount the discounters.
Instead, the struggling department store chain has chosen to promote unique initiatives, such as its layaway program and a guarantee that its kids clothing will not wear out before the child grows out of the duds. The latter program, known as Kidvantage, offers to replace clothing free of charge should it become too holey or otherwise unwearable while still fitting the child for whom it was purchased.
According to an AdAge.com article, both the layaway program and Kidvantage give Sears the means to eliminate "barriers to shopping" while "differentiating itself from rivals at the same time."
"We've already put a stake in the ground when it comes to offering a wide assortment of great brand names that are affordable," Craig Israel, senior VP-president of Sears Apparel, told Ad Age. "No matter how reasonably priced an item is, though, it has to stand up to the rigors of active kids or there's no cost savings for parents. It's a program we see resonating more and more with our customers during these difficult economic times."
Discussion Questions: What do you think of Sears' attempts to differentiate with its layaway and Kidvantage programs? Are these initiatives that can be co-opted by others and used perhaps more successfully than by Sears?