Sears, Roebuck and Co., commonly known as Sears ( ), is an American chain of
department store
A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store mad ...
s and online retailer founded in 1892 by
Richard Warren Sears
Richard Warren Sears (December 7, 1863 – September 28, 1914) was an American businessman who co-founded the department store Sears, Roebuck and Company with his partner Alvah Curtis Roebuck.
Early life
Sears was born in Stewartville, Minnes ...
and
Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and
Julius Rosenwald
Julius Rosenwald (August 12, 1862 – January 6, 1932) was an American businessman and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for establishing the Rosenwald Fund, which donated millions i ...
, with what began as a
mail-order
Mail order is the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote methods such as:
* Sending an order form in the mail
* Placing an order by telephone call
...
catalog company migrating to opening retail locations in 1925, the first in
Chicago
Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
. Through the 1980s, Sears was the largest retailer in the United States. In 2005, the company was bought by the management of the American
big box discount chain
Kmart
Kmart ( ), formerly legally registered as Kmart Corporation, now operated by Transformco, is a department-store chain and online retailer in the United States and Territories of the United States, its territories. It operates four remaining Kma ...
, which upon completion of the merger, formed
Sears Holdings. In 2018, it was the 31st-largest.
After several years of declining sales, Sears' parent company filed for
Chapter 11
Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, w ...
bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...
on October 15, 2018.
It announced on January 16, 2019, that it had won its bankruptcy auction, and that a reduced number of 425 stores would remain open, including 223 Sears stores.
Sears was based in the
Sears Tower in Chicago from 1973 until moving out to
Hoffman Estates, Illinois
Hoffman Estates is a village in Cook County, Illinois, United States. It is a suburb of Chicago. Per the 2020 United States census, 2020 census, the population was 52,530.
The village previously served as the headquarters for Transform Holdco L ...
in 1992, although the company vacated its former headquarters entirely only in 1995. On December 12, 2022, Sears Authorized Hometown Stores, LLC, and affiliated debtor Sears Hometown, Inc., filed for Chapter 11 bankruptcy protection, and on December 26 announced the liquidation of the 115 largely owner-operated Hometown stores.
[
]
History
Beginnings
Richard Warren Sears
Richard Warren Sears (December 7, 1863 – September 28, 1914) was an American businessman who co-founded the department store Sears, Roebuck and Company with his partner Alvah Curtis Roebuck.
Early life
Sears was born in Stewartville, Minnes ...
was born in 1863 in Stewartville, Minnesota
Stewartville is a city in Olmsted County, Minnesota, United States. Stewartville sits just south of the Rochester International Airport, which is about 10 miles south of the city of Rochester. The population was 6,687 at the 2020 census, and ...
, to a wealthy family which moved to nearby Spring Valley.[, Spring Valley Methodist Church Museum, Accessed January 17, 2011.] In 1879, his father died shortly after losing the family fortune in a speculative stock deal. Sears moved across the state to work as a railroad station agent in North Redwood, then Minneapolis
Minneapolis is a city in Hennepin County, Minnesota, United States, and its county seat. With a population of 429,954 as of the 2020 United States census, 2020 census, it is the state's List of cities in Minnesota, most populous city. Locat ...
.
While he was in North Redwood, a jeweler refused delivery on a shipment of watches. Sears purchased them and sold them at a low price to the station agents, making a profit. He started a mail-order watch business in Minneapolis in 1886, calling it the R.W. Sears Watch Company. That year, he met Alvah Curtis Roebuck, a watch repairman. In 1887, Sears and Roebuck relocated the business to Chicago, and the company published Richard Sears's first mail-order catalog, offering watches, diamonds, and jewelry.
In 1889, Sears sold his business for $100,000 ($ in dollars) and relocated to Iowa, planning to be a rural banker. He returned to Chicago in 1892 and established a new mail-order firm, again selling watches and jewelry, with Roebuck as his partner, operating as the A. C. Roebuck watch company. On September 16, 1893, they renamed the company Sears, Roebuck, and Co. and began to diversify the product lines offered in their catalogs.
Before the Sears catalog, farmers near small rural towns usually purchased supplies, often at high prices and on credit, from local general store
A general merchant store (also known as general merchandise store, general dealer, village shop, or country store) is a rural or small-town store that carries a general line of merchandise. It carries a broad selection of merchandise, someti ...
s with narrow selections of goods. Prices were negotiated and relied on the storekeeper's estimate of a customer's creditworthiness. This also had the effect of helping black farmers during the Jim Crow Law era, when storekeepers may not make them the same offers. Sears built an opposite business model by offering in their catalogs a larger selection of products at published prices.
By 1894, the Sears catalog had grown to 322 pages, including many new items, such as sewing machines, bicycles, sporting goods and automobile
A car, or an automobile, is a motor vehicle with wheels. Most definitions of cars state that they run primarily on roads, Car seat, seat one to eight people, have four wheels, and mainly transport private transport#Personal transport, peopl ...
s (later produced, from 1905 to 1915, by Lincoln Motor Car Works of Chicago Ford line">Lincoln_(automobile).html" ;"title="o relation to the current Lincoln (automobile)">Ford line. By 1895, the company was producing a 532-page catalog. Sales were over $400,000 ($ in dollars) in 1893 and over $750,000 ($ in dollars) two years later. By 1896, dolls, stoves, and groceries were added to the catalog.
Despite the strong and growing sales, the national Panic of 1893 led to a full-scale economic depression, causing a cash squeeze and large quantities of unsold merchandise by 1895. Roebuck decided to quit, returning later in a publicity role. Sears offered Roebuck's half of the company to Chicago businessman Aaron Nusbaum
Aaron E. Nusbaum (January 8, 1859July 1, 1936), later Aaron Norman, was an American entrepreneur and philanthropist who is best known as one of the two men who acquired 50% of the stock in the fledgling Sears, Sears, Roebuck and Co. from Richard W ...
, who in turn brought in his brother-in-law Julius Rosenwald
Julius Rosenwald (August 12, 1862 – January 6, 1932) was an American businessman and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for establishing the Rosenwald Fund, which donated millions i ...
, to whom Sears owed money. In August 1895, they bought Roebuck's half of the company for $75,000 ($ in dollars), and that month the company was reincorporated in Illinois with a capital stock of $150,000 ($ in dollars). The transaction was handled by Albert Henry Loeb of Chicago law firm Loeb & Adler (now Arnstein & Lehr); copies of the transaction are still displayed on the firm's walls.
Early 20th century
Sears and Rosenwald got along well with each other, but not with Nusbaum; they bought his interest in the firm for $1.3 million in 1903 ($ in dollars). Rosenwald brought to the mail-order firm a rational management philosophy and diversified product lines: dry goods, consumer durables, drugs, hardware, furniture, and nearly anything else a farm household could desire.
Sales continued to proliferate, and the prosperity of the company and their vision for more significant expansion led Sears and Rosenwald to take the company public in 1906, with a stock placement of $40 million ($ in dollars). They had to incorporate a new company to bring the operation public; Sears and Rosenwald established Sears, Roebuck and Company with the legal name Sears, Roebuck and Co., in the state of New York, which effectively replaced the original company. The current company inherits the history of the old company, celebrating the original 1892 incorporation, rather than the 1906 revision, as the start of the company.
Sears's successful 1906 initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
(IPO) marks the first major retail IPO in American financial history and represented a coming of age, financially, of the consumer sector. The company traded under the ticker symbol S and was a component of the Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States.
The DJIA is one of the oldest and most commonly followed equity indice ...
from 1924 to 1999.
In 1906, Sears opened its catalog plant and the Sears Merchandise Building Tower in Chicago's West Side. The building was the anchor of what would become the massive Sears, Roebuck and Company Complex of offices, laboratories, and mail-order operations at Homan Avenue and Arthington Street. The complex served as corporate headquarters until 1973 when the Sears Tower was completed and served as the base of the mail-order catalog business until 1995.
By 1907, under Rosenwald's leadership as vice president and treasurer, annual sales of the company climbed to roughly $50 million ($ in dollars). Sears resigned from the presidency in 1908 due to declining health, with Rosenwald named president and chairman of the board and taking on full control.
In 1910, Sears acquired the David Bradley Plow company. This acquisition would lead to the manufacturing of riding mowers, chainsaws, tillers, etc., in the Bradley Illinois factory.
The company was badly hurt during 1919–21 as a severe depression hit the nation's farms after farmers had over-expanded their holdings. To bail out the company, Rosenwald pledged $21 million ($ in dollars) of his personal wealth in 1921. By 1922, Sears regained financial stability.
Boom years
Brick and mortar
Rosenwald decided to shift emphasis to urban America and brought in Robert E. Wood
Robert Elkington Wood (June 13, 1879 – November 6, 1969) was an American military officer and business executive. After retiring from the U.S. Army as a brigadier general, Wood had a successful career as a corporate executive, most notably ...
to take charge.
Rosenwald oversaw the design and construction of the firm's first department store, built on land within the Sears, Roebuck, and Company Complex. The store opened in 1925. In 1924, Rosenwald resigned the presidency but remained as chair until he died in 1932; his goal was to devote more time to philanthropy.
The first store opened on February 2, 1925, as an experiment in the North Lawndale Sears, Roebuck and Company Complex. Despite its remote location on the outskirts of Chicago, its success led to dozens of further openings across the country, many in conjunction with the company's mail-order offices, typically in lower-middle-class and working-class neighborhoods, far from the main downtown shopping district. This was considered highly unconventional at a time when shopping was concentrated in city centers, but through World War II
World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, there was an extensive streetcar
A tram (also known as a streetcar or trolley in Canada and the United States) is an urban rail transit in which vehicles, whether individual railcars or multiple-unit trains, run on tramway tracks on urban public streets; some include s ...
network in Chicago and other U.S. cities. However, rapidly increasing car ownership and the brand's huge popularity helped attract customers.
Sears retail stores were pioneering and broke the conventions of the time in three ways:
*their location away from central shopping districts,
*innovative store design, and
*unconventional product mix and retailing practices.
Many stores at this time were designed by architect George C. Nimmons and his firms. The architecture was driven by merchandising needs rather than the desired outer appearance. This made the stores excellent examples of the modern architecture
Modern architecture, also called modernist architecture, or the modern movement, is an architectural movement and style that was prominent in the 20th century, between the earlier Art Deco and later postmodern movements. Modern architectur ...
of the time—styles made famous by Bertram Goodhue and Eliel Saarinen
Gottlieb Eliel Saarinen (, ; August 20, 1873 – July 1, 1950) was a Finnish and American Architecture, architect known for his work with Art Nouveau buildings in the early years of the 20th century. He was also the father of famed architect Ee ...
.
Its stores were oriented to motorists. Set apart from existing business districts amid residential areas occupied by their target audience, they had ample, free, off-street parking and communicated a clear corporate identity. In the 1930s, the company designed fully air-conditioned, "windowless" stores, such as Sears-Pico in 1939 in Los Angeles
Los Angeles, often referred to by its initials L.A., is the List of municipalities in California, most populous city in the U.S. state of California, and the commercial, Financial District, Los Angeles, financial, and Culture of Los Angeles, ...
, which was the first to have an open plan selling floor (instead of breaking up the floor into discrete sections).[
Sears was also a pioneer in creating department stores that catered to men and women. The stores included hardware and building materials. It de-emphasized the latest clothing fashions in favor of practical and durable clothing and allowed customers to select goods without the aid of a clerk.
]
Catalog
In 1933, Sears issued the first of its Christmas catalogs known as the " Sears Wishbook", a catalog featuring toys and gifts, separate from the annual Christmas Catalog. From 1908 to 1940, it included ready-to-assemble Sears Catalog Home kit houses.
Americas
Sears opened a small store in Downtown Havana
Havana (; ) is the capital and largest city of Cuba. The heart of La Habana Province, Havana is the country's main port and commercial center.[Mexico City
Mexico City is the capital city, capital and List of cities in Mexico, largest city of Mexico, as well as the List of North American cities by population, most populous city in North America. It is one of the most important cultural and finan ...](_bl ...<br></span></div>, Cuba in 1942. Sears opened its first store in <div class=)
in 1947; the Mexican stores would later spin off into Sears Mexico, now owned by billionaire Carlos Slim's Grupo Sanborns
Grupo Sanborns S.A. de C.V. is a retailing arm of the Carlos Slim-run Grupo Carso that includes the namesake Sanborns restaurant and junior department store chain, Mixup music stores, iShop Apple Inc., Apple/electronics stores, Sears Mexico, ...
, which in 2020 operated more than 75 stores across Mexico.
Sears had sales of US$78 million in other territories in 1953. Over time, Sears expanded into all Brazil, Colombia, Cuba, Ecuador, Peru, Puerto Rico, Venezuela and all Central American countries. Currently Sears operates in Mexico, Guatemala, El Salvador, and Puerto Rico.
Expansion
From the 1920s to the 1950s, Sears built many urban department stores in the U.S., Canada, and Mexico (apart from, but not far from, existing central business district
A central business district (CBD) is the Commerce, commercial and business center of a city. It contains commercial space and offices, and in larger cities will often be described as a financial district. Geographically, it often coincides wit ...
s), and they overshadowed the mail-order business. Following World War II, the company expanded into suburban markets and malls. In 1959, it had formed the Homart Development Company for developing malls. Many of the company's stores have undergone major renovations or replacements since the 1980s. Sears began to diversify in the 1930s, creating Allstate Insurance Company in 1931 and placing Allstate representatives in its stores in 1934 (Allstate was also used as a house brand on a range of motorized vehicles sold by Sears). Over the decades, it established major national brands, such as Kenmore, Craftsman, DieHard, Silvertone, Supertone, and Toughskins — and marketed widely under its private label
A private label, also called a private brand or private-label brand, is a brand owned by a company, offered by that company alongside and competing with brands from other businesses. A private-label brand is almost always offered exclusively by th ...
s, e.g., marketing the ''Sears Archer 600'' typewriter as a rebranded
Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors ...
Silverette model, manufactured by Silver Seiko Ltd. of Japan.
The success of Sears outdoor products raised the attention of the Federal Government and the antitrust laws. Sears purchased David Bradley to manufacture farm and lawn equipment. Its success was broken up in 1962 as they sold more plows than John Deere. Sears sold half of the David Bradley factory in Bradley, Illinois to the Newark Ohio Company that was shortly acquired by Roper Industries.
1970s pinnacle
Sears reached its pinnacle in the 1970s. In 1974, Sears completed the 110-story Sears Tower in Chicago, which became the world's tallest building, a title it took from the former Twin Towers
Twins are two offspring produced by the same pregnancy.MedicineNet > Definition of Twin Last Editorial Review: 19 June 2000 Twins can be either ''monozygotic'' ('identical'), meaning that they develop from one zygote, which splits and forms two e ...
in New York. Upon moving out of Chicago, Sears sold the Sears Tower in 1988. In the sale contract of the tower, Sears retained its naming rights to the building until 2003, but the Sears Tower retained the name until early 2009, when London-based insurer Willis Group Holdings, Ltd. was given the building's naming rights to encourage them to occupy the building. Sears moved to the new Prairie Stone Business Park in Hoffman Estates, Illinois, between 1993 and 1995. The Sears Centre Arena (renamed to NOW Arena in 2020) is a 10,001-seat multi-purpose arena located in Hoffman Estates adjacent to the former Prairie Stone campus.
Mail order
The Sears catalog became known in the industry as "the Consumers' Bible". The company began selling to foreign customers after the American occupation of Greenland in World War II and the Philippines, among others, when locals ordered from catalogs left by soldiers. Novelists and story writers often portrayed the importance of the catalog in the emotional lives of rural folk. The catalog also entered the language, particularly of rural dwellers, as a euphemism
A euphemism ( ) is when an expression that could offend or imply something unpleasant is replaced with one that is agreeable or inoffensive. Some euphemisms are intended to amuse, while others use bland, inoffensive terms for concepts that the u ...
for toilet paper, as its pages could be torn out and used as such. In addition, for many rural African-Americans, especially in areas dominated by Jim Crow
The Jim Crow laws were state and local laws introduced in the Southern United States in the late 19th and early 20th centuries that enforced racial segregation, " Jim Crow" being a pejorative term for an African American. The last of the ...
racial segregation
Racial segregation is the separation of people into race (human classification), racial or other Ethnicity, ethnic groups in daily life. Segregation can involve the spatial separation of the races, and mandatory use of different institutions, ...
, the Sears catalog was a vital retail alternative to local white-population-dominated stores, bypassing the stores' frequent intention to deny them fair access to their merchandise.
However, as the nation urbanized, Sears's catalog business faced competition from city department stores. Rural America's population was slow-growing and possessed far less spending power than urban America.
Decline
In the 1980s, the company began to diversify into non-retail entities such as buying Dean Witter and Coldwell Banker
Coldwell Banker Real Estate LLC is an American real estate franchise owned by Anywhere Real Estate, with headquarters in Madison, New Jersey. It was founded in 1906 in San Francisco, and has approximately 3000 offices in 49 countries and terri ...
in 1981. In 1984, it launched Prodigy as a joint venture with IBM
International Business Machines Corporation (using the trademark IBM), nicknamed Big Blue, is an American Multinational corporation, multinational technology company headquartered in Armonk, New York, and present in over 175 countries. It is ...
, and introduced the Discover credit card in 1985. However, these actions have been said to have distracted management's attention from the core retail business and allowed competing retailers to gain significant ground, culminating with Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...
surpassing Sears as the largest retailer in the United States in 1990.[
In the 1990s, the company began divesting itself of many non-retail entities, which were detrimental to its bottom line. Sears spun off its financial services arm, which included brokerage business Dean Witter Reynolds and Discover Card. It sold its mall building subsidiary Homart to ]General Growth Properties
GGP Inc. (an initialism of General Growth Properties) was an American Commercial property, commercial real estate company and the second-largest shopping mall operator in the United States. It was founded by brothers Martin Bucksbaum, Martin, Ma ...
in 1995. Sears later acquired hardware chain Orchard Supply Hardware in 1996 and started home improvement store The Great Indoors in 1997.
The cost of distributing the once highly influential general merchandise catalog became prohibitive; sales and profits had declined. The company discontinued the catalog in 1993. It dismissed 50,000 workers who had filled the orders. In 1992, the company posted a $3.9 billion loss, the largest ever from an American retailer.
In 1992, California successfully sued the company for falsely finding things wrong with automobiles in for repair for other reasons. In 1997, criminal charges were made. In 1998, Sears announced it had sold the remnants of Western Auto (which it had acquired in 1998) to Roanoke-based Advance Auto Parts
Advance Auto Parts, Inc. is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves professional installer and do it yourself (DIY) customers.
Company History
In April 1932, Arthur Taubman purch ...
. The business deal was not what experts in the after-market automotive industry expected: Sears, Roebuck became "one of the largest shareholders" after obtaining a 40% stake in Advance Auto Parts and merging their two store networks, which included Western Auto's wholesale and retail operations. The existing store network of Advance Auto Parts, comprising 915 stores in 17 U.S. states, merged with 590 U.S.-based Parts America Stores in addition to 40 Western Auto stores in the Commonwealth of Puerto Rico
; abbreviated PR), officially the Commonwealth of Puerto Rico, is a Government of Puerto Rico, self-governing Caribbean Geography of Puerto Rico, archipelago and island organized as an Territories of the United States, unincorporated territo ...
. In 1997, Sears sold 85% of its Mexico affiliate to Grupo Carso. Sears Holdings continued to produce specialty catalogs and reintroduced a smaller version of the Holiday Wish Book in 2007.
In 2003, Sears sold its U.S. retail credit card operation to Citibank
Citibank, N.A. ("N. A." stands for "National bank (United States), National Association"; stylized as citibank) is the primary U.S. banking subsidiary of Citigroup, a financial services multinational corporation, multinational corporation. Ci ...
. The remaining card operations for Sears Canada were sold to JPMorgan Chase
JPMorgan Chase & Co. (stylized as JPMorganChase) is an American multinational financial services, finance corporation headquartered in New York City and incorporated in Delaware. It is List of largest banks in the United States, the largest ba ...
in August 2005. In 2003, Sears opened a new concept store called Sears Grand. Sears Grand stores carried everything that a regular Sears carried, and more. Sears Grand stores were about .
On November 17, 2004, Kmart Holdings Corporation announced it would acquire Sears, Roebuck, and Co. for $11 billion after Kmart completed its recovery from bankruptcy. As a part of the acquisition, Kmart Holding Corporation, along with Sears, Roebuck, and Co., was transformed into the new Sears Holdings Corporation
Sears Holdings Corporation was an American holding company headquartered in Hoffman Estates, Illinois. It was the parent company of the chain stores Kmart and Sears and was founded after the former purchased the latter in 2005. It was the 20th- ...
. The new company started trading on the NASDAQ stock exchange as SHLD; Sears sold its single-letter ticker symbol 'S' in the New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
that it had held since 1910 to Sprint Corporation
Sprint Corporation was an American telecommunications company. Before being acquired by T-Mobile US on April 1, 2020, it was the fourth-largest mobile network operator in the United States, serving 54.3 million customers as of June 30, 2019. Th ...
. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands. In 2005, the company began renovating some Kmart stores and converting them to the Sears Essentials format, only to change them later to Sears Grands. The combined company's profits peaked at $1.5 billion in 2006.
By 2010, the company was no longer profitable; from 2011 to 2016, the company lost $10.4 billion. In 2014, its total debt ($4.2 billion at the end of January 2017) exceeded its market capitalization ($974.1 million as of March 21, 2017). Sears declined from more than 3,500 physical stores to 695 U.S. stores from 2010 to 2017. Sales at Sears stores dropped 10.3 percent in the final quarter of 2016 when compared to the same period in 2015.
Sears spent much of 2014 and 2015 selling off portions of its balance sheet; namely, Lands' End and its stake in Sears Canada, one of the biggest e-commerce players in Canada, with Can$
The Canadian dollar (currency symbol, symbol: $; ISO 4217, code: CAD; ) is the currency of Canada. It is abbreviated with the dollar sign $. There is no standard disambiguating form, but the abbreviations Can$, CA$ and C$ are frequently used f ...
505 million in sales in 2015—more than Walmart and others who had begun pushing aggressively into online sales, such as Canadian Tire. Sears stated that the company was looking to focus on becoming a more tech-driven retailer. Sears's CEO and top shareholder said the sell-off of key assets in the last year had given the retailer the money it needs to speed up its transformation. Sears Holdings had lost a total of US$7 billion in the four years to 2015. In part, the retailer was trying to curb losses by using a loyalty program called Shop Your Way. Sears believed the membership scheme would enhance repeat business and customer loyalty in the long term.
CEO Eddie Lampert also concluded an arrangement that sold the Craftsman brand to Stanley Black & Decker Inc. for approximately US$900 million. In October 2017, Sears and appliance manufacturer Whirlpool Corporation
Whirlpool Corporation is an American multinational corporation, multinational manufacturer and marketer of home appliances headquartered in Benton Charter Township, Michigan, United States. In 2023, the Fortune 500 company had an annual revenue ...
ended their 101-year-old association, reportedly due to pricing issues, although Whirlpool continued supplying Sears with Kenmore-branded appliances. In May 2018, Sears announced it had formed a "special committee" to explore the sale of Kenmore.
Bankruptcy and current operations
On September 24, 2018, the retailer's CEO warned that the company was "running out of time" to salvage its business. Sears Holdings filed for Chapter 11 bankruptcy on October 15, 2018, ahead of a $134 million debt payment due that day. On November 23, 2018, Sears Holdings released a list of 505 stores, including 266 Sears stores, that were for sale in the bankruptcy process, while all others would hold liquidation sales.
On January 16, 2019, Sears Holdings announced it would remain open after Lampert won a bankruptcy auction for the company with an offer to keep about 400 stores open. On February 7, 2019, a bankruptcy judge approved a $5.2 billion plan by Sears's chairman and biggest shareholder to keep the business going. The approval meant roughly 425 stores, including 223 Sears stores, and 45,000 jobs would be preserved.
In April 2019, Sears announced the opening of three new stores with a limited set of merchandise under the name Sears Home & Life. Also that month, Sears closed its store at Windward Mall in Kaneohe, Hawaii
Kāneohe () is a census-designated place (CDP) included in the City and County of Honolulu and in Hawaii state District of Koolaupoko on the island of Oahu. In the Hawaiian language, ''kāne ohe'' means "bamboo man". According to an ancient ...
, and its store at Oakbrook Center in Oak Brook, Illinois
Oak Brook is a village (Illinois), village in DuPage County, Illinois, with a very small portion in Cook County, Illinois, Cook County. The population was 8,163 at the 2020 United States census, 2020 census.
A suburb of Chicago, it contains th ...
(which was razed and already rebuilt as a 1-story store), making it the first post-bankruptcy closure for the brand since being bought by ESL.
On June 3, 2019, the company announced that Transform Holdco would acquire Sears Hometown & Outlet Stores. As per deal, it might need to divest its Sears Outlet division to gain approval. On August 7, 2019, it was announced that 26 stores would close that October, including 21 Sears stores, among them the last Sears stores in Alabama
Alabama ( ) is a U.S. state, state in the Southeastern United States, Southeastern and Deep South, Deep Southern regions of the United States. It borders Tennessee to the north, Georgia (U.S. state), Georgia to the east, Florida and the Gu ...
and West Virginia
West Virginia is a mountainous U.S. state, state in the Southern United States, Southern and Mid-Atlantic (United States), Mid-Atlantic regions of the United States.The United States Census Bureau, Census Bureau and the Association of American ...
, at Riverchase Galleria in Hoover and at Huntington Mall in Barboursville, respectively. The announcement also included plans to "accelerate the expansion of our smaller store formats which includes opening additional Home & Life stores and adding several hundred Sears Hometown stores after the Sears Hometown and Outlet transaction closes." On August 31, 2019, management announced that Transform would close an additional 92 stores, including 15 Sears stores, by the end of 2019. Near the end of 2019, Sears sold the brand name DieHard to Advance Auto Parts for $200 million.
A total of 100 more stores closed by December 2019. 51 Sears stores were closed in February 2020. More stores continued to close throughout 2020 and 2021 including the final Sears in Maine at The Maine Mall.
In September 2021, the company's website listed 35 Sears stores. That month, Sears announced that it would close more stores, including the last Sears store in New York City. The New York City Sears closed by November 24, 2021, with the potential to be redeveloped. Transformco announced in December 2021 its plans to sell the Sears headquarters in Hoffman Estates, which includes of undeveloped land.
On January 19, 2022, Sears shut the remaining 15 Sears Auto Centers in the United States.
In May 2022, it was announced that roughly 100 more Sears Hometown stores, including the last four in Michigan, would close permanently. On December 13, 2022, Sears Hometown filed for Chapter 11 bankruptcy. It was later revealed that all remaining Sears Hometown stores would be liquidated and permanently closed.
there were eight Sears stores remaining, with seven in the mainland U.S. and one location in the U.S. territory of Puerto Rico. The company's U.S. website, Sears.com, remains active for online purchases. The most recent Sears store closing, in Tukwila, Washington, occurred on December 15, 2024.
Demolition of the company's former headquarters in Hoffman Estates began in August 2024.
Corporate affairs
Logo
File:Sears, Robuck & Co. letterhead 1907.jpg, Logo used in 1907
File:Sears logo 1966-1984.svg, Logo used from 1966 to 1984
File:Sears1984.png, Logo used from 1984 to 1994
File:Sears logo 1994-2004.svg, Logo used from 1994 to 2004; a red version of this logo is still used by Sears Mexico.
File:SearsLogo.svg, Logo used from 2004 to 2010 in the United States
File:Sears logo 2010-present.svg, Logo used from 2010 to 2019
File:Sears logo (2020).svg, Logo used from 2020 to present
Sponsorships
Before the company filed for bankruptcy, Sears sponsored many entertainment and sporting events.
From 2006 until 2020, it had the naming rights to an 11,000-seat multi-purpose family entertainment, cultural and sports center in Hoffman Estates, the Now Arena.
The company sponsored the television series '' Extreme Makeover: Home Edition''. The company also underwrote the PBS
The Public Broadcasting Service (PBS) is an American public broadcaster and non-commercial, free-to-air television network based in Arlington, Virginia. PBS is a publicly funded nonprofit organization and the most prominent provider of educat ...
television series ''Mister Rogers' Neighborhood
''Mister Rogers' Neighborhood'' (sometimes shortened to ''Mister Rogers'') is an American half-hour educational children's television series that ran from 1968 to 2001. It was created and hosted by Fred Rogers. Its original incarnation, the se ...
'', under the name The Sears-Roebuck Foundation, from the show's premiere in 1968 until 1992.
Through the Sears Auto Centers, the company sponsored the Formula Drift Darren McNamara Sears/Falken Saturn Sky drift car. It sponsored the NASCAR Truck Series
The NASCAR Craftsman Truck Series is a pickup truck racing series owned and operated by the NASCAR, National Association for Stock Car Auto Racing (NASCAR), and is the only series in NASCAR to race production pickup truck-based stock car racing, s ...
, using the Craftsman brand as the title sponsor, from the series' inception in the 1995 NASCAR SuperTruck Series presented by Craftsman to the 2008 season, when the agreement ended. It sponsored the #10 Gillett Evernham Motorsports car of Scott Riggs for the September 2, 2007, running of the Sharp AQUOS 500 at California Speedway
Auto Club Speedway (known as California Speedway before and after the 2008–2023 corporate sponsorship by the Automobile Club of Southern California) was a , D-shaped oval superspeedway in unincorporated San Bernardino County, California, ne ...
through its Sears Auto Center branch. However, Riggs failed to qualify for the event. In 2016, Craftsman became the title sponsor of the World Racing Group, World of Outlaws Sprint car racing series.
Employee relations
Sears has struggled with employee relations. One notable example was the shift in 1992 from an hourly wage based on longevity to a base wage (usually between US$3.50 and US$6 per hour) and commissions ranging from 0.5% to 11%. Sears said the new base wage, often constituting a substantial (up to 40%) cut in pay, was done "to be successful in this highly competitive environment".
In early October 2007, Sears cut commission rates for employees in some departments to between 0.5% and 4% but equalized the base wage across all Home Improvement and Electronics departments. In 2011, commission rates on non-base items were cut by 2% in the electronics department. In late 2009, the electronic department's commission on "base items" was cut to 1%. As of 2017, appliances is the only remaining department where compensation is based entirely on commission. Other departments give a base pay plus commission. In many stores, jewelry department associates receive a low base salary with a 1% commission on their sales.
In March 2019, Sears said that it was ending life insurance
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typical ...
benefits for an undisclosed number of its 90,000 retirees. A few months earlier, the company had handed out over $25 million in bonuses to executives. This key Sears Retiree Benefit was worth between $5,000 and $15,000 for most of the pool (29,000) of eligible retired employees.
In May 2019, former Sears Holdings chairman and CEO Eddie Lampert, months after purchasing the remains of Sears from the holding company, threatened not to pay out the $43 million in pension payments owed to 90,000 former Sears and Kmart employees and retirees. A ''Forbes
''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...
'' editorial pointed out that Steven Mnuchin, Secretary of the Treasury
The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
at the time, was a board member of Sears Holding until 2016 and was, at the time, one of three directors of the Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation (PBGC) is a United States federally chartered corporation created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private defined ...
, which manages administration of pensions for defunct or bankrupt businesses.
Data breaches
2017
Between September 26 and October 12, 2017, malware were installed in the computers operated by a service provider for sears.com and kmart.com e-commerce sites in which the credit card information of 100,000 customers were exposed via a malicious script. The breach was not publicly announced until April 2024.
2021
In 2021, an unauthorized party accessed Transformco computer servers between June 3 and June 15 that held employee payroll and healthcare information that affected current and past Sears and other Transformco employees.
Leadership
President
# Richard W. Sears, 1886–1908
# Julius Rosenwald
Julius Rosenwald (August 12, 1862 – January 6, 1932) was an American businessman and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for establishing the Rosenwald Fund, which donated millions i ...
, 1908–1924
# Charles M. Kittle, 1924–1928
# Robert E. Wood
Robert Elkington Wood (June 13, 1879 – November 6, 1969) was an American military officer and business executive. After retiring from the U.S. Army as a brigadier general, Wood had a successful career as a corporate executive, most notably ...
, 1928–1939
# Thomas J. Carney, 1939–1942
# Arthur S. Barrows, 1942–1946
# Fowler B. McConnell, 1946–1958
# Charles H. Kellstadt, 1958–1960
# Crowdus Baker, 1960–1968
# Arthur M. Wood, 1968–1973
# A. Dean Swift, 1973–1981
# Edward R. Telling, 1981–1982
# Archie Boe, 1982–1986
# Richard M. Jones, 1986–
Chairman of the Board
# Julius Rosenwald
Julius Rosenwald (August 12, 1862 – January 6, 1932) was an American businessman and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for establishing the Rosenwald Fund, which donated millions i ...
, 1924–1932
# Lessing Rosenwald, 1932–1939
# Robert E. Wood
Robert Elkington Wood (June 13, 1879 – November 6, 1969) was an American military officer and business executive. After retiring from the U.S. Army as a brigadier general, Wood had a successful career as a corporate executive, most notably ...
, 1939–1954
# Theodore V. Houser, 1954–1958
# Fowler B. McConnell, 1958–1960
# Charles H. Kellstadt, 1960–1962
# Austin T. Cushman, 1962–1967
# Gordon M. Metcalf, 1967–1973
# Arthur M. Wood, 1973–1978
# Edward R. Telling, 1978–1981
# Edward A. Brennan, 1981–1982
# Edward R. Telling, 1982–1986
# Edward A. Brennan, 1986–1995
Gallery
File:Sears PDN.jpg, Mall entrance to the Sears store at Plaza del Norte in Hatillo, Puerto Rico
Hatillo () is a town and municipality located in Puerto Rico's north coast, bordered by the Atlantic Ocean to the north, Lares and Utuado to the south, Camuy to the west, and Arecibo to the east. According to the 2000 US Census Hatillo is spre ...
, in 2011. This store closed in April 2021.
File:Sears Auto Center.jpg, Sears Auto Center at Steeplegate Mall in Concord, New Hampshire
Concord () is the capital city of the U.S. state of New Hampshire and the county seat, seat of Merrimack County, New Hampshire, Merrimack County. As of the 2020 United States census the population was 43,976, making it the List of municipalities ...
, in 2017. The Auto Center and the main store at this location closed in February 2020.
File:2006 Sears Hawthorn Center.jpg, Exterior of the Sears at the Westfield Hawthorn in Vernon Hills, Illinois
Vernon Hills is a suburb north of Chicago, Illinois in Lake County, Illinois, Lake County, Illinois, United States. The population was 26,850 at the 2020 census. Vernon Hills serves as a retail hub for its surrounding area (Libertyville, Illinois ...
, in 2006. This location closed in September 2018 and was demolished in 2021.
File:1.8.09ParamusParkMallByLuigiNovi3.jpg, Mall entrance to the former Sears at Paramus Park in Paramus, New Jersey
Paramus ( Waggoner, Walter H, ''The New York Times'', February 16, 1966. Accessed October 16, 2018. "Paramus – pronounced puh-RAHM-us, with the accent on the second syllable – may have taken its name from 'perremus' or 'perymus,' Indian for ...
, in 2009. This location closed in 2018.
File:Sears, Roebuck and Company Warehouse and Service Center -- Houston, Texas.jpg, Sears, Roebuck and Company Warehouse and Service Center in Houston
Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...
, Texas
Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...
, in August 2020. On the National Register of Historic Places.
File:Searsessentials.jpg, Exterior of the Sears Essentials in Palm Springs, Florida, in 2010; later reopened as Sears Outlet and closed once again
File:Sears grand tarentum.JPG, 2013 photo of the mall entrance to the Sears Grand at Pittsburgh Mills in Tarentum, Pennsylvania. This Sears closed in January 2015.
File:Sears Parts Repair Brooklyn.JPG, Exterior of the Sears Parts & Repair Store in Brooklyn, Ohio
Brooklyn is a city in Cuyahoga County, Ohio, United States. The population was 11,359 at the 2020 census. A suburb of Cleveland, it is a part of the Cleveland metropolitan area.
History
Brooklyn was home to the first seat belt law in 1966 an ...
, in 2012
File:Sears Coral Gables (Miami, Florida) still open 19 March 2022 - 23.jpg, Inside a Sears Store at Coral Gables in Miami
Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
, Florida
Florida ( ; ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...
, in 2022, one of the few remaining Sears stores
See also
* Gala-Sears – disbanded Chilean unit
* Retail apocalypse
The retail apocalypse refers to the closing of numerous brick-and-mortar retail stores in the United States, especially those of large chains, beginning in the 2010s and accelerating due to the mandatory closures during the COVID-19 pandemic.
In ...
* Sears Canada – disbanded Canadian unit
* Sears Mexico – Mexican unit held by Grupo Carso
* Sears plc
Sears plc was a large British-based conglomerate. The company was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. It was acquired by Charles Clore in the 1950s who expanded the company to be one of the lar ...
– former UK company unrelated to U.S. retailer
* Sears Puerto Rico – Puerto Rican unit
References
Further reading
* Chang, Myong-Hun, and Joseph E. Harrington Jr. (December 1998)
"Organizational structure and firm innovation in a retail chain"
''Computational & Mathematical Organization Theory'' 3.4: 267–288. . Compares Sears's Robert E. Wood with Montgomery Ward's Sewell Avery.
*
* Emmet, Boris, and John E. Jeuck. ''Catalogues and counters: A history of Sears Roebuck and Company'' (1950).
*
*
*
External links
*
Sears, Roebuck and Company records
are archived at the American Heritage Center
The American Heritage Center is the University of Wyoming's repository of manuscripts, rare books, and the university archives. Its collections focus on Wyoming and the Rocky Mountain West (including politics, settlement, Native Americans, and W ...
, University of Wyoming
The University of Wyoming (UW) is a Public university, public land-grant university, land-grant research university in Laramie, Wyoming, United States. It was founded in March 1886, four years before the territory was admitted as the 44th state, ...
.
Sears Roebuck catalog from 1898 (1,056 pages)
{{Authority control
Sears
Sears, Roebuck and Co., commonly known as Sears ( ), is an American chain of department stores and online retailer founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosen ...
1892 establishments in Illinois
American companies established in 1892
Companies based in Cook County, Illinois
Companies that filed for Chapter 11 bankruptcy in 2018
Department stores of the United States
Former components of the Dow Jones Industrial Average
Companies formerly listed on the New York Stock Exchange
Hoffman Estates, Illinois
Lists of brands by company
Mail-order retailers
Manufactured home manufacturers
Online marketplaces of the United States
Retail companies established in 1892
Sears Holdings brands
Transformco