Sears, a Trend Setter?

Sears has more of a reputation for solid value than chasing the latest trend. But when it comes to online retail, Sears Holdings Corp. is breaking new ground – or at least following fast on the heels of those who do. The company is expanding its online marketplace to include outside merchants on Sears.com, a move also recently undertaken by Walmart.com and of course, long a feature of Amazon.com’s business strategy.
 
According to Internet Retailer, Sears soft launched the marketplace last fall when it redesigned Sears.com, but says it is now moving into full production and is actively looking for more business partners. Sears will charge a monthly fee of $39.99 and take a commission of 15 to 20 percent depending on product category. Of the gift-related categories, baby, toys and games, among others, are in the 15 percent bracket while beauty, health and wellness are in the higher bracket. Sears will process all transactions, but order fulfillment and customer service will be the responsibility of individual retailers. Retailers can apply at seller.marketplace.sears.com. Sears hasn’t yet said whether its third party marketplace will expand to Kmart.com and LandsEnd.com.

But that’s not the company’s only recent innovation. Kmart is launching online layaway Friday, Oct. 9 on kmart.com. Customers can pick up their items at a local Kmart store. Features include a Layaway Availability Grid, Layaway Calculator, Layaway Manager and Contract Management E-mails reminding shoppers of their scheduled payments. Customers who start a layaway in store can also make payments online. Online layaway is also available at Sears. Online users have eight weeks to pay off their product and must pay biweekly. A $5 initiation fee may vary by state and a down payment of $15 or 10 percent (whichever is greater) is required. 

According to Kmart, the word "layaway" had more than double the interest among U.S. searchers in August 2009 than it had in August 2008. Kmart’s layaway program has seen double-digit increases in layaway customers and sales in 2008. 

Is online layaway worth the hassle for smaller stores? If the trend catches on with other major retailers, will it cut into the viablity of Bill Me Later?