Those who are old enough can vaguely remember the excitement when a glossy new Sears catalogue arrived in the mail (it was discontinued back in 1993). Of course, those were much better days for the now failing department store, which got its start in 1893.
Though Sears fought a long and hard battle, the onetime mall staple just couldn’t compete in the 2000s retail climate.
The company filed for Chapter 11 bankruptcy on October 15 2018, listing $6.9 billion in assets and $11.3 billion in liabilities. It announced it would close an additional 142 stores by the end of the year (which have now presumably closed their doors), in addition to 46 stores that were to close by November of last year. Of course, this didn’t come as a huge surprise to anyone.
For the past decade, Sears – once the largest retailer in the U.S.– has experienced declining comparable sales, as well as annual losses since 2010. In response to slumping sales, Sears began to close stores in the past ten years, and had shuttered nearly three-quarters of its stores when it announced its bankruptcy filing.
View this post on Instagram
So, what went wrong?
A handful of things, it appears. While it focused on the home in its early days, some point to a diversification into other products and services as contributors in the company’s gradual demise.
Sears ventured into insurance in 1931 and stock broking and commercial properties in the 1980s. In his book “The Hard Road to the Softer Side: Lessons from the Transformation of Sears,” former Sears CEO Arthur Martinez blamed the diversification for a loss of focus for the brand.
Sears lost its title as the largest retailer in the U.S. to Walmart in the early 1990s, thanks to Walmart’s wider variety of goods at lower prices and a culture of educated consumers with options. At the same time, people began to turn to places like Home Depot, Target, and Costco for their home needs.
Instagram/ @mitcheleno
Though the emergence of online shopping has undoubtedly impacted the store closings, Sears was actually an early adopter of the online world, introducing the sale of everything from electronics and home appliances to toys on sears.com in 2000.
This was just eight months after online retail giant Amazon started to expand its offerings from books, to include computer goods, home improvement items, and video games. By this time, job cuttings and store closings had already become commonplace for Sears in order to maintain profitability.
In recent decades, attempts to keep with the competition included things like the rollout of Internet cafes in 2006 and 2007 in some 100 locations.
Sears also attempted to adopt a “store within a store” model of business, an initiative that began with the purchase of retailer Lands’ End, which Sears owned from 2002 to 2014. Clearly, the model didn’t stick.
Sears merged with a failing Kmart in 2005 to become Sears Holdings in an $11-billion dollar deal that was engineered by Wall Street hedge fund billionaire Eddie Lampert, who took control of Sears in 2013, becoming its CEO. Today, many people blame the billionaire for the company’s bankruptcy, citing the lack of sense it made for Sears to buy another retailer who was not doing well. In the decade following the merger, Sears really began to slide.
Instagram/ @sears
Lampert’s clearly failed strategy was to cut costs and sell the real estate occupied by underperforming stores.
The problem was, according to experts, that he didn’t invest this to rebuild the business. While the company was valued at $11 billion on the stock market at the time of its merger, by October 2018, it was just $37 million. He stepped down from his role as CEO at this time, but remains chairman and Sears’ largest shareholder and has stated publicly that he wanted to save the company.
Some point to the rise in online shopping and the shift away from the mall for the demise of Sears. But it hasn’t seemed to hurt Canada’s forever-iconic Hudson’s Bay Centre. While stores like The Bay have made efforts to upgrade the in-store experience to retain foot traffic, Sears stores became almost dingy and in need of repair.
The arrival of big name department stores Saks Fifth Avenue and Nordstrom to Canada in recent years likely added more competition in the country.
There are no more Sears stores left in Canada as of January 2018.
Instagram/ @noticiastelemundoAs if the abandoned stores across North America weren’t enough, Sears saw the departure of some of its largest longtime vendors in October 2017, including Maytag, KitchenAid, and – most notably – Whirlpool, which Sears started selling in 1916.
While Sears is still in business – with some 425 locations still up and running in the U.S. – the company is clearly holding on for dear life.
On Monday, January 14, a bankruptcy court held an auction that pitted Lampert and his over $5-billion offer (made by ESL Investments, the hedge fun run by Lampert) against companies wanting to sell Sears for scrap value. While Sears’ creditors and independent board members want to shut down operations of both Sears and Kmart, Lampert wants to keep the existing stores up and running, saving roughly 50,000 jobs in the process.
At time of writing, the winning bidder was yet to be announced. Either way, it generally doesn’t look good for Sears, as the company remains on life support. So, if you have Sears gift certificates collecting dust, you may want to cross the border and spend them ASAP.
Featured image: Instagram/ @pthibz
Posts you might be interested in:
Sears is Closing 48 More Stores Despite Recent Rebranding
Sears is Trying to Be Cool But is It Too Late?
It Seems Like Trouble Is Brewing For Once-Popular Home Retail Chain
5 Stores Closing In Toronto This Month
5 Retailers That Could Be At Risk In The Future
If you’ve been following news on the once popular store Sears, then you’ve likely come to the realization that the retailer is in a dire state. Despite an effort to rebrand which included a new pop-up shop concept to entice younger shoppers, Sears still seems to be falling short and will be closing 48 more stores.
Following a slew of liquidation sales, including locations in the GTA, Sears Holdings seems to be facing the same lack of interest in its American locations, also including the company’s Kmart stores. CNBC reported that liquidation sales across 33 Sears and 13 Kmart locations across the US were expected to begin late August, undoubtedly solidifying the fact that the department store is following the same trend across the border, as it is here in Canada.
The company said in a statement, “We continue to evaluate our network of stores, which is a critical component to our integrated retail transformation, and will make further adjustments as needed.” Whether or not they were referring to trimming the company’s real estate as part of the plan is unclear, but it doesn’t take an expert to come to the conclusion that Sears is still in trouble.
Apparently, the dwindling sales aren’t only due to a lack of interest from shoppers, but also a decline in in-store shopping since customers are increasingly opting to shop online. While the retailer is still testing out new concepts, like stand-alone mattress stores and combined Kmart and Sears locations, the retailer had already issued a statement as early as last January that roughly 100 locations would be closed.
Along with shares that have plunged by 85% over the past 12 months, it also seems to be selling off some of its house brands. They have already sold their Craftsman brand and now it seems like the Kenmore appliance brand will be next to go, as CNBC also reported Sears was evaluating a bid of $400 million from Lampert’s hedge fund, ESL Investments.
Whether or not Sears can miraculously bounce back from all these closures is uncertain, but one thing is for sure: its not looking good and the end seems inevitable. The last provided total of 894 operating stores was given this past January, but no updated figure has been available since. While you may be thinking 894 stores is a lot, Investopedia states that the retailer used to have 3,500 stores when Sears and Kmart first merged in 2005. That’s 2,606 store closures!
Sources: CNBC, Investopedia
After Sears Canada announced this fall that they were liquidating all their operations across the country for good, we were heartbroken to hear that thousands of employees lost their jobs.
Today, on the ruins of what once was one of the most successful retail giants in American history, a group of 25 Canadian companies have come together to open a 150,000-square-foot, two-story mega liquidation centre in Markham to sell Sears inventory direct to the public.
The new outlet will not only help sell thousands of items of orphaned Sears inventory but also will hire many ex-Sears employees to help run the outlet, making it a win-win solution that serves both parts.
“Aside from the tremendous pain to employees, pensioners and vendors who have lost millions of dollars as a result of Sears’ bankruptcy, customers have lost a reliable source of high-quality merchandise and many vendors lost their largest customer,” said Ari Starr, the founder of Bobby’s Liquidation Outlet and one of Sears’ former suppliers.
Bobby’s Liquidation Outlet offers clothing, accessories, leather goods and jewelry to toys, bath, bedding, kitchenware and home decor items, with the exception of appliances at deeply discounted prices. Visitors can also find such brands as Armani, Columbia Sportswear, Dolce & Gabbana (D&G), Gucci, Cavalli, Moschino and Dsquared – at bargain prices.
According to the official news-release, sample bargain prices at Bobby’s Liquidation Outlet include $9.99 for Sears’ Jessica Brand dresses, $59 for Columbia Sportswear winter jackets, $49 for designer jeans from D&G, Gucci, Dsquared, 40-50 percent off socks and undergarments, $14.99 for a four-piece set of twin or queen sheet sets ($15.99 for king sets), and much more.
The outlet located at Steeles Avenue and Highway 404 at 2900 Steeles Avenue will also surprise vintage lovers with a 3,500-square-foot Antique & Vintage Market, featuring vintage furniture, lamps, appliances and jewelry at below market prices.
Good news is that by purchasing any item at the outlet sale you will also support people with special needs, as a portion of the profit will go to organizations supporting people with disabilities, including Thornhill-based DANI, Yachad and Reena.
What do you think about Bobby’s Liquidation outlet? Let us know in the comments.
Featured image: Bobby’s Outlet
Posts you might be interested in:
You Won’t Believe How Sears Told 300 Toronto Employees They Were Being Let Go
Why People Don’t Care About Black Friday/ Cyber Monday Anymore
8 Retailers that Shut Their Doors for Good in 2017
8 Retailers that Could See Trouble in 2018
How to Shop A Warehouse Sale
Sears Canada has been all over the news recently as liquidation sales are underway at remaining stores. But unfortunately, they’ve been unable to go out of business in style despite a ‘great’ clearance sale and major chaos in-stores.
As shared by Elizabeth MacMillan on Facebook, the liquidation sales at Sears Canada can be pretty misleading. Prices have been changing and it hasn’t been in favour of the consumer. “Be very careful and check your prices before buying. I looked at four different items I nearly bought a few weeks ago before the liquidation and all of them had their prices changed and were now higher,” she stated in her post.
Other shoppers have reported similar experiences while shopping at Sears Canada.
Lots of Sears Carlingwood shoppers leaving w/out buying, tell me they’re v. disappointed w/ liquidation sale. Most items 20% off #ottnews pic.twitter.com/5P76YgN1FF
— Giacomo Panico (@GiacomoPanico) October 19, 2017
Stay away from Sears liquidation sale, their pricing is all (enormously) jackup.#fakesale
— Joselito Chu (@LitoChu) October 26, 2017
@rebecca__joseph saw the same gouging @Sears – this was ‘liquidation’ price, right next door #BadBoy had the same model for $899! pic.twitter.com/jG12qgOJGN
— Ken Hall (@KenHallArt) October 26, 2017
When Sears was asked to comment on these consumer reports, their spokesperson Vincent Power told Global News that “if there are some cases of regular pricing that may have gone up, then would be odd exceptions, a system error, and not reflecting the spirit of what we are trying to do. We’ll try to make any situation right by our customers if such an issue comes up.”
This isn’t the first time consumers have complained of liquidation prices rising. In 2015, Target struggled with the same issues of price jumping. Although Sears doesn’t come up with the liquidation prices, it still doesn’t look good for the brand as a whole.
Posts you might be Interested in:
Check Your Receipts — Sears Canada Will No Longer Accept Extended Warranties
Artemano is Moving & Everything is on Sale!
3 Reasons Why We’re Obsessed with the New Nike Clearance Store in Mississauga
Get a Sneak Peek at The District Designer Pop-Up Sale
Absolute Mayhem Ensues at Sears Liquidation
We can’t say we didn’t see this coming.
According to a recent report from CBC, Sears Canada wants to liquidate its remaining stores and assets. The retailer plans to seek court approval and hopefully begin the liquidation process as soon as mid-October. The news comes just a week after announcing they would be closing additional stores, including two in the GTA, on top of the 59 stores they closed earlier this year.
“Sears Canada, with the recommendation of its advisers and approval of the monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval,” Sears Canada said in a release. “The company deeply regrets this pending outcome and the resulting loss of jobs and store closures.”
If Sears Canada receives court approval, the liquidation would begin no sooner than October 19, and continue for 10 to 14 weeks.
We’ll keep you updated as the story develops.
Are you surprised that Sears Canada will be closing?
Posts you might be Interested in:
Sears is Trying to be Cool, but is it too Late?
You Won’t Believe How Sears Told 300 Toronto Employees They Were Being Let Go
What the Heck is Going on with Le Chateau
Struggling Retailers Need to Rebrand if they Want to Survive
5 Fashion Brands that have Made a Major Comeback
Things keep getting worse for Sears Canada. In Spring 2017, Sears announced that it was closing 59 stores and that over 2,000 jobs would be affected. Fast forward to October 2017, the Toronto Star is reporting that Sears Canada will close 10 more stores, including the GTA’s CF Fairview Mall and Scarborough Town Centre locations. In total, 1,200 people will be affected by the store closures.
While Sears Canada is in turmoil, many are expecting that Sears will eventually be sold, but at this point, there doesn’t seem to be too many interested parties.
We will keep you posted when liquidations begin.
Good news for all the diligent home shoppers out there: this is an opportune time to score some big deals at the Sears.
As you already know, Sears Canada declared bankruptcy earlier this year, and stores across Canada have been undergoing renovation or shutting down. They hope to restructure and emerge from this troublesome time in the months to come. But until business takes a better turn, it’s time to take advantage of liquidation sales. We recently checked out the Sears Home store in Scarborough to see what’s on sale.
You can find all you need to give your home a makeover in store. Whether you’re looking for a new leather couch, appliances or home decor, you’ll be able to snag some sweet deals — everything in store is 30-60% off. They’re holding nothing back, and even the fixtures and equipment are on sale.
According to an employee in-store, prices will not be getting any lower. The store’s final day open is Wednesday, August 23, so don’t miss out! Get a full list of all the other Sears’ locations closing here.
Will you be visiting Sears Home Scarborough for discount deals?
All images by Lisa Xu.
Posts you might be Interested in:
Sears has had to Disable Comments on their Facebook Page due to Customer Backlash
Managers at Sears get Paid Thousands in Bonuses while Laid Off Workers Get Nothing
These are all the Stores Sears is Liquidating
Chinese Dollarama Competitor MINISO Vows to Open 500 Canadian Stores
Is Walmart Buying Birchbox?
What the Sears? Actually, that was an older rebranding campaign they ran. The latest is a Target Canada-esque activation, but instead of saying sorry, they want Canadians to know that they’ve changed.
So just how are they doing this? This weekend, Sears Canada is opening a pop-up shop at 322 1/2 Queen St. West, located in one of Toronto’s busiest shopping areas. Titled “Experience Change“, the pop-up shop is hip and modern, with a neon sign spelling out, “It’s never too late to get your ____ together” and a partnership with local coffee shop Dark Horse Espresso Bar for free coffee sips while customers shop.
And not only is the coffee free, but Sears Canada has taken over a number of Queen West streetcars to offer free rides to the shop. On board, passengers have the opportunity to win prizes and giveaways. The first 50 customers in line will also receive a $100 credit to shop the pop-up shop.
Starting Saturday, April 8th through summer, shoppers will be able to experience Sears Canada’s new off price concept, The Cut. Product offerings include pre-loved designer vintage from labels like Fendi, Gucci, Chloe and more, Sears’ new fast fashion lines (think floral jumpsuits and embroidered denim jackets), furniture, and more.
Get full details about the Sears Canada pop-up shop here.
Posts you may be Interested in:
Inside Toronto’s Newest Sneaker Store, Footaction
5 Major Sales to Shop this Weekend: AllSaints, casalife + more
This Toronto Island Bike Rental Company is Closing and Selling Off Everything
Sears Canada is Launching a New Off-Price Strategy
10 Free Things to do this Month in Toronto: April 2017