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Between 1995 and 1997, Sears’ retail store revenue per selling square foot was not only lower than that of Wal-Mart but in decline.
Sears allows customers to pay for merchandise over time if they use the company’s proprietary credit card. Sears opened 24 million new credit card accounts over a 3 year period and had 27 million active customer credit accounts with an average balance of $1058 in 1997. The balance on credit cards accounted for 90% of the total receivables. In contrast, Wal-Mart does not have their own proprietary credit cards and its customers may use a MasterCard with a Wal-Mart logo that is issued by the Chase Manhattan Bank...
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