November 29, 2004

Sears + Kmart = IT Innovation?

Many readers doubted the profitability and efficacy of the Sears-Kmart merger. Some IT analysts see things differently:

[B]oth companies -- particularly Sears with its powerful data warehouse � need to understand that the right use of technology can be a differentiator and an ally in the battle with Wal-Mart and other specialty retailers. He just hopes they can keep innovating while they're stepping back and reassessing....

Where they may like to go is head to head with Wal-Mart. Laurie Orlov, a vice president and principal at Cambridge, Mass.-based Forrester Research Inc., thinks the acquisition, to borrow a line from Martha Stewart, is "a good thing."

"IT in the retail world is so affected by what Wal-Mart does," she said. "Sears and Kmart want more control of the IT aspect of their supply chain. If there are innovations at either company that will trump Wal-Mart, then this combined muscle is good."

To me, that's a lot more hope and hype than seems warranted...

Posted by Kevin on November, 29 2004 at 11:40 AM