Richard W. Sears: Retail Innovator and Co-Founder of Sears, Roebuck and Company
Richard Warren Sears was an American businessman, entrepreneur and retail innovator who, along with Alvah C. Roebuck, co-founded the hugely successful Sears, Roebuck and Company in 1886. Widely known for pioneering mail-order catalogues and retail department stores, Sears made a huge impact on the American retail industry and his innovation left a lasting legacy.
Early Life
Richard Warren Sears was born 16 December 1863, in Stewartsville, New Jersey, to James Warren Sears and Eliza A. (Gallups) Sears. His father was a prominent doctor in the community who operated a drugstore on the side. Sears had two siblings and attended school up until the eleventh grade before leaving to start work in North Redwood, Minnesota.
Business Career Before Sears, Roebuck and Company
Sears’s first job took him to Minnesota, where he secured a position as a station agent for the Minneapolis and St. Louis railroad station. It was here that he first began to demonstrate entrepreneurial spirit, with one of his first money-making plans being to buy up slightly damaged watches from the mail-order houses that the railway companies released and then amending them before selling them on for a large profit.
Sears soon moved on to the Chicago, Burlington and Quincy Railroads in the town of North Redwood, continuing to buy and sell merchandise, focusing on watches and jewelry. After a productive period of trading, Sears’s success attracted the attention of jeweler Alvah C. Roebuck who, in 1886, joined forces with Sears to co-found Sears, Roebuck and Company.
Formation of Sears, Roebuck and Company
Taking the phrase “satisfaction guaranteed or your money back” as its marketing slogan, Sears, Roebuck and Company fast became one of the largest mail-order businesses of its time. Initially, the retail enterprise focused on watches and jewelry, turning an initial investment of $1000 into a combined success with Sears and Roebuck estimated to have earned $750,000 by 1895.
By 1893, Sears had bought the company outright from Roebuck and began to aggressively expand the firm’s coverage of mail-order items. The business bloomed and soon seen the release of the company’s first mail order catalogue, which was used to promote a range of items from audio players to mousetraps and air rifles. It was an immediate success and the catalogues soon became a symbol of the successful business, dominating the world of American mail-order sales throughout the late 1800s.
Retail Innovations
The concept of the mail-order catalogue soon led to the gradual move towards retail outlet stores, with the first Sears, Roebuck store opening in 1925 in Chicago. Incorporating spectacle-lined counters and convenient displays, Sears, Roebuck and Company quickly gained a reputation as an innovative powerhouse of retail.
In addition to this, Sears was also one of the first to introduce the concept of payment plans, giving customers the ability to purchase items on credit. This facilitated a wave of ‘catalog shopping’ and allowed the company to heavily expand their reach and customer base.
By the end of the 1920s, Decorated Catalog Houses – a variation of the mail order idea in which customers could purchase a pre-built prefabricated home with all furniture and even decorations included – was launched, allowing for distance customers to enjoy the benefits of mail-order.
Sears also embarked on a separate venture in the finance industry, creating Allstate Corporation, a car insurance company, in 1931. Aiming to provide customers with car insurance, Allstate quickly became the second largest car insurance provider in the United States behind State Farm, a testament to the expertise of Sears and his pioneering efforts in the field of retail.
Resignation and Later Life
Despite all the successes of Sears, Roebuck and Company, Richard W Sears resigned as president of the joint venture in 1908, selling his assets and rights to a group of bankers and investors. With his departure, the retail giant began to struggle and Sears went on to pursue his interest in finance, along with a number of short-lived business ventures.
He died in 1914 in Brentwood, Tennessee as a result of a regional sized stroke.
Legacy
The legacy of Richard W. Sears lives on to this day, with the department store chain still going strong, now having expanded into a range of different fields. Taking into account the unique nature of the company and the impact Sears had on the world of Retail, it is no surprise that he is widely considered one of the foremost pioneers of the American Retail Industry.
Today, the catalog home service introduced by Sears has been updated and modernized for today’s audience and the Allstate Corporation he founded continues to thrive as a strong third in the US car insurance market. These achievements continue to stand as a testament to the skill and business acumen of the great Richard W Sears.
Richard Warren Sears was one of the most influential American businessmen of his day, establishing some of the most successful businesses of the 19th Century. His innovative approach to retail, in combination with the marketing tactics he devised, allowed him to revolutionize the world of mail-order sales and retail department stores, setting a trend of modern retail that continues even today. As a result of his peak achievements, Sears is widely seen as one of the most renowned and respected retail innovators the world has ever seen.
