Running head: INNOVATION/ENTREPRENEURIAL MISHAPS INNOVATION/ENTREPRENEURIAL MISHAPS Innovation/Entrepreneurial Mishaps Sears and Staples are well-known businesses that are closing stores and announcing significant layoffs for employees. Sears and Staples are on the verge of closing down stores due to bigger, innovative, and competitive retailers. As these stores continue to be taken over by competitive marketing strategies and catchy slogans, is it even possible to save a sinking ship? This paper illustrates missed opportunities for innovation and creativity that could save these retailers. Sears Sears has nearly closed half of their stores due to a lack of sales in the retail industry. In 2005 Kmart merged with Sears, and this merger did not profit either establishment but only proved to be a disaster. Loeb (2016), "In 2005 Edward S. Lampert merged Sears and Kmart into Sears Holding. Ed Lampert is the founder and chairman of ESL Investment, a Connecticut-based private hedge fund" (para. 4). Kmart’s sales had lacked before the merger and Sears missed an opportunity to evolve with technology while stores like Walmart, Costco, Sam’s Club, The Home Depot, and Lowes are booming in sales and profits. There are a few approaches Sears could use to bring their company back on the grid. First; reasonable prices, 2nd; Convenient locations, 3rd; find out what the customers want and need, 4th; clean the stores up and make them more inviting for customers. Consumers want to shop in clean, organized, and friendly stores. Customers are always looking for variety and a good deal. Patrons can always get great deals when buying from retailers that have products made from overseas, and the competition is stiff. Snyder (2016), "Sears Chairman Eddie Lampert released a letter to shareholders filled with all kinds of bad news. In this letter, he blamed the horrible results that Sears has been experiencing lately on “tectonic shifts” in consumer spending” (para. 2). Sears can turn this around just by finding the right person that is willing to take on the challenges entailed with the collapsing merger. Staples Staples’s biggest competitor is Amazon.com, and they are not backing away from the fight. As a matter of fact, the Chief Information Officer (CIO), Tom Conophy, has declared that they are willing to go after Amazon on their platform. As the self-proclaimed original disruptors in retail, who has lost their way, did not see the Amazon machine coming, but has pledged to take the fight to Amazon. Staples is trying to increase its market share by enhancing its on-line functions and incorporating competitive pricing. “In more general terms, Conophy described the kind of innovative, forward-thinking IT approach he feels necessary for survival in today's retail environment,” (Berthiaume, 2016). Staples plans on closing 12 percent of their stores, equivalent to 225 establishments and saving the company $500 million dollars. They are planning to ...

1. Running head: INNOVATION/ENTREPRENEURIAL MISHAPS
INNOVATION/ENTREPRENEURIAL MISHAPS
Innovation/Entrepreneurial Mishaps
Sears and Staples are well-known businesses that are closing
stores and announcing significant layoffs for employees. Sears
and Staples are on the verge of closing down stores due to
bigger, innovative, and competitive retailers. As these stores
continue to be taken over by competitive marketing strategies
and catchy slogans, is it even possible to save a sinking ship?
This paper illustrates missed opportunities for innovation and
creativity that could save these retailers.
Sears
Sears has nearly closed half of their stores due to a lack of sales
in the retail industry.
In 2005 Kmart merged with Sears, and this merger did not profit
either establishment but only proved to be a disaster. Loeb
(2016), "In 2005 Edward S. Lampert merged Sears and Kmart
into Sears Holding. Ed Lampert is the founder and chairman of
ESL Investment, a Connecticut-based private hedge fund" (para.

2. 4). Kmart’s sales had lacked before the merger and Sears missed
an opportunity to evolve with technology while stores like
Walmart, Costco, Sam’s Club, The Home Depot, and Lowes are
booming in sales and profits. There are a few approaches Sears
could use to bring their company back on the grid. First;
reasonable prices, 2nd; Convenient locations, 3rd; find out what
the customers want and need, 4th; clean the stores up and make
them more inviting for customers. Consumers want to shop in
clean, organized, and friendly stores. Customers are always
looking for variety and a good deal.
Patrons can always get great deals when buying from
retailers that have products made from overseas, and the
competition is stiff. Snyder (2016), "Sears Chairman Eddie
Lampert released a letter to shareholders filled with all kinds of
bad news. In this letter, he blamed the horrible results that
Sears has been experiencing lately on “tectonic shifts” in
consumer spending” (para. 2). Sears can turn this around just by
finding the right person that is willing to take on the challenges
entailed with the collapsing merger.
Staples
Staples’s biggest competitor is Amazon.com, and they are
not backing away from the fight. As a matter of fact, the Chief
Information Officer (CIO), Tom Conophy, has declared that
they are willing to go after Amazon on their platform. As the
self-proclaimed original disruptors in retail, who has lost their
way, did not see the Amazon machine coming, but has pledged
to take the fight to Amazon. Staples is trying to increase its
market share by enhancing its on-line functions and
incorporating competitive pricing. “In more general terms,
Conophy described the kind of innovative, forward-thinking IT
approach he feels necessary for survival in today's retail
environment,” (Berthiaume, 2016).
Staples plans on closing 12 percent of their stores,
equivalent to 225 establishments and saving the company $500
million dollars. They are planning to reinvest in the e-commerce
and innovation departments of the company. Staples in-store

3. sales have dropped seven percent, but their on-line sales have
grown by ten percent. Staples plans to reinvent its brand and
prove that they are more than a paper and printer store. With a
new slogan like, "Make More Happen," Staples plans to be more
like Walmart and Amazon selling everything customers want
and need. They will sell more than just paper and pencils, and
have prices that are competitive in-store and on-line.
Conclusion
As the middle-class society continues to decrease and
spending follows with a downturn in this new economic day in
age, smaller communities are finding it harder to support their
local retailers and are turning to the bigger retailer that can
provide their families with lower costs and better products.
Sears and Staples can recover from this meltdown by taking the
time out to see what people want and what they have to say
about their stores. Use technology for advancement and
resourcefulness. There are some loyal consumers still out there
waiting for these stores to make that change and never forget
why the company first went into business. Consumers need to
know that the stores they are shopping at are stores they can
trust.

4. References
Berthiaume, D. (2016). Chain Store Age. Retrieved from
http://www.chainstoreage.com/article/staples-aims-amazon-
innovative-efficient-data-driven-it#
Hisrich, R.D., & Kearney, C. (2014). Managing innovation and
entrepreneurship. Los Angeles,
CA: Sage
Loeb, W. (2016). Sears Holding (SHLD) - An Opportunity
Missed - A Tragedy in the Making. Retrieved from
http://www.forbes.com/sites/oracle/2016/09/08/move-over-
mobile-ai-has-arrived/#1a8a8a2c5be0
Snyder, M. (2016). Economic Recovery? 13 of the Biggest
Retailers in America are Closing Down. Retrieved from
http://theeconomiccollapseblog.com/archives/economic-
recovery- 13-of-the-biggest-retailers-in-america-are-closing-
down-stores