Introduction

For anyone who grew up in the United States, the name Sears was once synonymous with American retail power. Founded in 1892, Sears Roebuck & Company grew to become the largest retailer in the world by the middle of the 20th century, a title it would hold for several decades. However, in recent years, Sears has struggled to stay afloat, with store closures and bankruptcy filings making headlines. This article aims to explore the current state of Sears and what its future prospects look like.

A Straightforward News Piece

As of August 2021, Sears Holdings Corporation, the parent company of Sears and Kmart, continues to operate, albeit on a much smaller scale. Over the past several years, the company has closed more than 3,500 stores and cut tens of thousands of jobs. The most recent round of store closures was announced in March 2021, with 46 Sears and Kmart locations slated to shut their doors for good by mid-May. These store closures are part of a larger trend in the retail industry, with many traditional brick-and-mortar stores struggling to compete with the rise of e-commerce giants like Amazon.

For customers who still frequent Sears, these store closures can be a disappointing blow. Limited inventory, long wait times at the customer service desk, and inconsistent hours are just a few of the complaints that have emerged as a result of the company’s downsizing efforts. For employees, however, the impact has been much more significant. Many have lost their jobs, and those who remain must contend with reduced hours, fewer benefits, and more demanding workloads.

A Historical Analysis

The Sears that we see today is a far cry from the pioneering mail-order business that started it all in 1892. Over the decades, Sears diversified its offerings, expanding into home appliances, automotive products, and real estate. The company played a significant role in post-war consumer culture, marketing to the burgeoning middle class and building massive stores in suburban shopping centers.

However, in recent years, the company has been unable to keep up with the changing retail landscape. The rise of e-commerce, changing consumer habits, and mismanagement have all contributed to Sears’s decline. In 2018, the company filed for Chapter 11 bankruptcy protection and closed hundreds of stores. The company emerged from bankruptcy in early 2019, but its future remains uncertain.

The strategies that Sears has used to try to stay relevant in the 21st century have been hit or miss. For example, the company launched an online marketplace where third-party sellers could offer products, similar to Amazon’s model. However, the marketplace never gained much traction, and it was shut down in 2019. Sears has also experimented with leasing out space in its stores to other retailers, but this too has not proved to be a reliable source of income.

Interviews with Experts

To gain a better understanding of Sears’s current state and future prospects, we spoke with several retail experts. One such expert, Sarah Halzack, a columnist for Bloomberg Opinion, believes that Sears is unlikely to make a full recovery:

“While it’s admirable that Sears is still around in some form in 2021, it’s clear that it’s a shell of its former self. I think that at this point, the future is probably more about winding down than about growth.”

Another expert, Jan Kniffen, CEO of consultancy firm J Rogers Kniffen WWE, believes that while Sears will continue to operate in the short term, it will eventually go out of business:

“I don’t think that they are long for this world. They serve nobody in the retail landscape. It’s a company that started in the 1890s, and it’ll be a casualty…I’m sure that something from their business will survive, but it won’t be the current retail store format.”

A Profile of Sears’s Customers

Despite its challenges, Sears still has a loyal customer base. These customers tend to be older and more committed to the brand, often shopping at the stores out of habit or nostalgia. While some customers have complained about the store’s decline, others appreciate the fact that Sears still offers products that are difficult to find elsewhere, such as appliances and tools. Additionally, with the current state of the industry where many stores have closed, customers are finding that they don’t have a lot of options. This has meant that returning to Sears can hit on a sense of nostalgia in these customers, as many might frequent 2 or more stores but sticking to their favorite store still proves to be a good choice.

For those who continue to shop at Sears, a mix of affordable prices, in-store promotions, and personalized customer service keeps them coming back. However, with stores closing at an alarming rate, it remains to be seen how long customer loyalty will hold up as options grow increasingly limited.

Future Possibilities

Given the challenges that Sears has faced in recent years, its future prospects are not particularly bright. While it may continue to operate in some capacity in the short term, it seems unlikely that the company will emerge as a major player in the retail landscape once again. Future possibilities could include a possible liquidation of assets or a significant change in business models, such as shifting focus to e-commerce or sustaining the brand through licensing.

Regardless, the fate of Sears has broader implications for the retail industry. As Jan Kniffen notes:

“Sears is not relevant. It’s not going to be relevant. And if Sears goes away, nobody is going to fill that space because the department store business is melting down.”

However, it’s important to recognize that even in the face of such dire predictions, Sears as a brand still has value. Whether through licensing deals or other arrangements, the company’s name recognition and history could live on in some form. Additionally, the struggles of Sears are not unique in the retail industry, and its decline may provide important lessons for other traditional retailers looking to adapt to changing times.

Conclusion

In summation, Sears is still in business, but its future prospects are uncertain. Looking at the historical factors, the recent store closures, and expert opinions shows that there are significant challenges ahead for the retailer. However, it’s clear that the impact of Sears goes far beyond brick-and-mortar stores and holds value in the retail industry’s future dealings.

For those who are curious about the retail industry’s future and the hardships Sears has encountered, we encourage you to do further research on your own. It is through our study and learning that we can become informed consumers and prepared industry professionals ready to tackle the challenges of the future as they come.