The Columbus Dispatch

Sears was the Amazon of its day

- New York Times

The orders poured in from everywhere — 105,000 a day at one point — so much so that the company became an economic force. It could make or break suppliers by promoting their products. It could dictate terms on manufactur­ing. Its headquarte­rs city boomed as this tech-driven retailer built huge warehouses and factories and attracted other businesses and rivals. State and local government­s complained that the company was harming small-town retailers.

That was Sears, Roebuck & Co. in the early 20th century in Chicago. But at various times in the history of retailing you could apply like descriptio­ns of retail might to Walmart, Kmart, Safeway, A&P, and F.W. Woolworth, whose downtown New York headquarte­rs building was christened the ‘‘Cathedral of Commerce’’ when it opened in 1913. Today the Woolworth Building is a luxury condo whose young residents are probably unaware of the extraordin­ary entreprene­ur who built it.

Which is to say that becoming the nation’s leading retailer does not guarantee immortalit­y, at least not beyond architectu­re. Sears, once America’s dominant retailer, has filed for Chapter 11 bankruptcy protection after 132 years in business.

Sears became the Amazon of its day because its cofounder Richard Warren Sears harnessed two great networks to serve his enterprise: the railroads and the U.S. Postal Service. When the Postal Service commenced rural free delivery in 1896 (the ‘‘last mile,’’ in today’s jargon) every homestead in America became within reach.

And Richard Sears reached them. He used his genius for advertisin­g and promotion to put a catalog in the hands of 20 million Americans in 1900, when the population was 76 million. The Wish Book or Big Book or Dream Book, as the catalog was variously called, could run a staggering 1,500 pages and offer more than 100,000 items. And when one of his pants suppliers, manufactur­ing wizard Julius Rosenwald, became his partner, in 1886, Sears was on the way to becoming a vertically integrated juggernaut.

In its earlier days, Sears was able to negotiate huge shifts in the economic and demographi­c landscape. By 1925, more Americans were living in the cities than in rural areas. Sears followed them by opening retail stores. The postwar boom would give rise to the suburban shopping mall, and Sears could easily finance and grab what were then the best locations across the country.

By a mid-1980s restructur­ing, the company briefly blossomed anew, in part by becoming a more full-blown conglomera­te that owned Allstate Insurance and the Dean Witter brokerage.

But high up in the Sears Tower, management couldn’t see that the retail landscape was changing. Sears couldn’t compete effectivel­y with Walmart and the growth of big-box merchandis­ers such as Toys R Us. But more important, the company could not summon the vision to anticipate the internet. By 1993, Sears had closed its national network of warehouses and exited the catalog business — which is basically e-retailing without the ‘‘e.’’ Amazon shipped its first book in 1995.

Certainly, Amazon looks unassailab­le in its current form. So did every retailer that became the biggest dog on retail’s porch. They were all innovative. They all pushed the boundaries on pricing, sourcing, marketing, regulation, employment, expansion and tax breaks. They all ultimately lost their way. Sears is the latest chapter in that story. And probably not the last.

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