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Sears Face(book)s Black Friday

By Mike Duff | Nov 23, 2009

Give Sears Holding (SHLD) credit for making the most out of Black Friday, as it’s not only squeezing the event for all its worth without actually discounting more deeply than other retailers, but it’s also using initiatives revolving around the date to boost its social networking initiatives.

Of course, the company got a lot of attention as October ended by running a Black Friday sale on Halloween weekend. An interesting aspect of the sale was that the discounts offered were pretty reasonably, at least from the Sears perspective. The company offered 10 percent off national brands in its strongest categories, tools and major appliances, and 20 percent off its popular Craftsman and Kenmore labels, which have margin advantages built in and can take a bigger discount before producing a loss. For those shoppers holding out for deeper discounts in this holiday season, Sears offered half off sweaters and outerwear. The company has been trying to reestablish its fashion operation for the past few years, so a deeper discount there not only would satisfy the goal of driving sales but also the deeper strategic purpose of reacquainting customers with the company’s apparel selection.

The retailer’s latest effort isn’t as wide ranging as the Halloween or follow-up Black Friday events the company launched, but it does show a determination to involve customers in new ways.

Essentially a sweepstakes, and nothing new to retail in that regard, the promotion required consumers who wanted to try their luck to visit the retailer’s Facebook page and register by Nov. 19. The sweepstakes offered two prize levels. The first included a Sears gift card worth $500, the second, another $500 gift card but also the opportunity to shop one of 25 Sears stores across the country on Wednesday, Nov. 25. In each store, the winners get to shop discounted Black Friday prices two days early.

Sears certainly isn’t the only retailer using Facebook to promote itself for the holidays or even for Black Friday. Staples (SPLS) previewed its Black Friday sales last week on Facebook and Twitter. Toys“R”Us gave shoppers access to its Black Friday deals today if they signed up for a special application on its Facebook page.

Give that a cautious consumer mood is likely to produce sparse holiday sales, any means to reach potential customers looks attractive to retailers, but, unlike a television commercial, a social network promotion can result in an ongoing link with consumers reached. Sears even has its own online community, MySears, offered as an independent element of the chain’s website and offering polls, a customer review function even a discussion section where participants are free to point out bad experiences with the operation. And MySears links to the company’s Facebook page, which recently led off with an elf-mounted notice that consumers can get special deals by becoming Sears fans on the social network.

Unfortunately, last night, clicking on the link for exclusive Facebook fan deals simply triggered a message to check back soon for constantly updated holiday bargains. So, while Sears has been aggressive in developing its social network marketing, the retailer hasn’t necessarily perfected its technique. Still, by involving Facebook in its Black Friday initiatives, Sears has satisfied the dual purpose of promoting its participation in a big sales day that rivals such as Walmart (WMT) and J.C. Penney (JCP) will probably advertise more aggressively while getting more consumers involved in its social network initiatives. Although that provides a potential link that could outlast Black Friday and the current holiday season, it might not, in fact, unless Sears can satisfy networkers with the bargains that it’s unleashing or at least back up the claims that its elves are making.

Mike Duff has written about retail and related fields over 20 years. His work has appeared in publications as diverse as Retailing Today, Drug Store News, Supermarket Business, Consumer Digest, MarketingWeek, American Food and Ag Exporter magazines.

BNET User Analysis

Web Buzz:
  • Sears Has No Balance Sheet Problem

    Seeking Alpha - 327 days 18 hours 58 minutes ago

    Todd Sullivan submits: An article last week brought up the issue of Sears Holdings SHLD and its balance sheet. It focused on Sears credit revolver and its upcoming renewal in 2010. It also misses the point.For those who do not want to read the whole thing, here are the

  • Eddie Lampert Heads into Memorial Day a Happy Man

    Seeking Alpha - 263 days 12 hours 6 minutes ago

    Hickey and Walters Bespoke submit: Making $561,000,000 in one stock on the Friday before the long Memorial Day weekend is a good way to start the summer, right? Sears Holdings SHLD is currently up $8.50 on the day after reporting better than expected earnings after the close

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    Seeking Alpha - 308 days 12 hours 19 minutes ago

    FP Trading Desk submits: Despite accumulating a large swath of shares recently, Sears Holdings Corp. SHLD is unlikely to make an imminent cash bid for the remaining stake in Sears Canada Inc., according to one analyst. "While Sears Holdings has been buying Sears Canada shares in the market, it

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    Seeking Alpha - 222 days 16 hours 30 minutes ago

    TechCrunch submits: By Robin Wauters It’s one thing when Internet companies like Facebook adopt OpenID, it’s another when a giant retailer like Sears Holdings Corporation SHLD embraces it. Sears has just announced that it will enable over 1 million monthly MySears and MyKmart visitors to use their Google

  • Sears' Earnings Are Wedded to Housing Market Fortunes

    Seeking Alpha - 162 days 17 hours 18 minutes ago

    Todd Sullivan submits: Well, its official, the boo-birds are back out on Eddie Lampert after Sears Holdings' SHLD recent miss. Now, it should be noted this is after Q1 results that "surprised" everyone by being better than expected and the stock rallied from $35 to near $80. So, who

 

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