The first problem was that Sears being into retailing business tries to venture into non – core operations. I.e. in real estate, financial services. These operations were not in the sync with Sears core businesses. Hence failed miserably.
The second problem was that some of the retailing operations were run by people who were inexperienced. This is primarily because Sears entered into the different vertical as explained in point 1. Hence as expected it was bound to fail.
The third problem that Sears had was with the way Sears started treating its employees. Sales people were under tremendous pressure and in fear that they might lose their job. There was nothing to motivate them. Goals were not matched with their expectations. All these results in losing many sales employees as some kind of trust factor was missing.
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