Most people think Sears is gone. Force into bankruptcy. Inventory liquidated. All stores closed. However, this is not true. Sears lives on with both an e-commerce presence and a few stories. It has made an extremely modest comeback.
Sears was founded in 1892. Slightly less than a century later, it was the largest retailer in America. At the same time, its name was on the tallest skyscraper in Chicago.
The beginning of the end occurred in 2004. Sears merged with another large retailer, which was Kmart. The theory behind the combination was that similar companies could share costs and cut overhead. The reality never matched that. Burdened by debt, the merged company began to lose money in 2010. Revenue started to drop in double digits year over the previous year.
What killed Sears as a large retailer? Most blame Chairman Eddie Lampert who engineered the combination with Kmart and failed to upgrade stores, mainly to save money. He bought in several CEOs who contributed to the problem.
Another easy excuse is one used by many failed retailers. They were overwhelmed by the online prowess of Amazon, which was on its way to becoming the second-largest company in America. On the ground, bricks-and-mortar champion Walmart, America’s largest company, helped to finish off weaker rivals.
Sears continues to operate, but barely. It has a website and 11 open stores. It is reasonable to ask, why bother? The answer is that there is no apparent reason.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.