Sears Roebuck Invented Mail Order, but Amazon Ate Its Lunch, and Now Brick & Mortar Retail Suffers

Sears Roebuck was a hot stock when it held its IPO in 1906, and ninety years later its shares had grown 434,552 percent. But by 1973, when it opened the Sears Tower (at that time the tallest building in the world), it apparently had lost all or most of its entrepreneurial instrincts, and it let Amazon get started in 1994 and overtake it, apparently without any counter-offensive.

But Sears isn’t the only retailer who missed the resolutionary changes in retailing. Most department store chains are suffering from changes in people’s tastes and how and where they shop. And many shopping malls are shadows of their former selves. It will be very interesting to see if Amazon can innovate in the grocery category.

Can Women Write Code As Well as Men?

Anyone working in Silicon Valley (or reading local newspapers) cannot fail to be personally affected by issues of workplace diversity (at least vicariously). (Actually, anyone reading the Wall Street Journal these days could not avoid seeing the variety of prose on this topic from its chorus of reporters and columnists.) And during the last couple of weeks s/he could scarcely avoid hearing about the 10-page memo written by Google’s James Damore, his subsequent firing, and the furor both locally and nationally. There is a saying in Japanese that “the nail that sticks up is the one that gets pounded down”, and we are sure that he feels very pounded down these days. And his subsequent article published in the Wall Street Journal (in a nice touch the accompanying picture shows him wearing a T-shirt that says “Goolag”) has doubtlessly made Google management feel pounded down, too. (This appears to add insult to the injury already facing Google because the U.S. Department of Labor is already claiming that Google systematically pays women less than men.)

It is no secret that the tech industry in general employs a majority of white or Asian (mainly Indian) men, particularly in technical and leadership roles, which means that Google is no better or worse than other giant tech companies. But when one digs a bit deeper, it turns out that Damore’s belief that women are less capable at writing code than men is incorrect because Indian women CAN code too.

The Wall Street Journal’s Andy Kessler points out that there is limited proof that Google’s mandatory “Unconscious Bias” training has any merit, because of the fallibility of the numerous studies that have supported its inclusion.

Actually, it is meaningless to give OVERALL statistics about percents of male/female or race without also putting them in the context of compensation or managerial level or similar measure, as we have tried to do with the illustration above.

Big Brother Is Watching, and Helping, You Shop

The incessant march of technology brings not only improved convenience but also often-scary invasion of privacy. “Big Brother” can now track your in-store habits, urge you on with stuff he already knew about you, and bill you without a checkout line. According to research conducted by the University of Pennsylvania’s Joseph Turow, the same sort of surveillance of consumers that occurs when they shop (or do anything) online is now occurring when they shop in bricks-and-mortar stores.

And Amazon, not content to sell only books and other inorganic items, is trying to expand into the giant groceries business. While some categories of products can be sold online in the same manner of non-grocery items, fresh produce and other items for which consumers want to get up close and personal with them cry out for nearby stores. One of Amazon’s innovations is to embed products with tracking devices that charge customers via their smart phones, thus eliminating the annoying wait in checkout lines and the cost of cashiers. Not all the bugs have been worked out yet, but when they are, stores like Trader Joe’s better watch out.