California will have to say goodbye to the well-known chain Sears, following the closure of its store in Burbank, Los Angeles. This U.S. retailer has had to confront the closure of stores, leaving only 6 operational locations out of more than 3,500 that it once had. Other branches are also in the process of closing, such as Whittier, which will stop operating after 30 years. According to the research firm Coresight, the closure could reach up to 15,000 establishments due to a decrease in visits and sales.
It was founded in Chicago in 1892, and was at the forefront of retail market leadership until 2010, when it began to compete with Walmart and the online market. Sears declared bankruptcy in 2018, but CEO Eddie Lampert rescued it for $9.6 billion. The fierce competition from online stores like Amazon, or competitors like Walmart makes it increasingly difficult for Sears. The same happened to JCPenney, which declared bankruptcy in 2020, closing 30% of its stores.
Sears
Founded in Chicago in 1892, Sears is a retail chain of department stores and other products. Created by Richard Warren Sears and Alvar Curtis Roebuck, it is an American department store chain. Its catalog includes clothing, appliances, tools, and household items. It started as a catalog sales company until it began to have physical stores. For many years, it was an icon and leader in the retail sector in the United States and Mexico.
Bye, Sears
On August 31, 2023, the Sears store in Burbank closed its doors after opening earlier that same year. The reason? A shortage of shoppers and the number of visits. This was the definitive farewell to the brand in Los Angeles, which is facing a reduction in its store network across the country. While it had more than 3,500 stores for decades, it now has only six operational locations in the country. On August 31, 2023, the Sears store in Burbank closed its doors after opening earlier that same year.
The reason? A lack of shoppers and number of visits. This was the definitive farewell of the brand in Los Angeles, which is facing a reduction in its network of stores across the country. While it had over 3,500 stores for decades, it now only has six operational locations in the country. Moreover, it is also in the process of closing other Sears branches. This is the case of Whittier, which after 30 years operating in South Los Angeles, is ceasing its activities. Coresight, the research firm, estimates the closure of a total of 15,000 establishments, triggered by the decline in visits and sales.
What happened to the brand?
Although since its creation in 1892, Sears’s growth was exponential and it came to lead the retail market in the United States, it was in 2010 that the emergence of competition such as Walmart and online sales began to cause problems. In 2018, it could not avoid declaring bankruptcy. However, Eddie Lampert, the CEO of the brand, decided to rescue it for $9,600 in two installments; first $4,400 and then $5,200. In this way, he saved 400 stores and provided a lifeline. However, it was temporary aid, as the closure of stores has not stopped since then.
What now?
Predicting the future of Sears doesn’t seem like a difficult task, although you never know what might happen. However, everything points to the fact that unfortunately, the once leader in retail in the United States will eventually disappear. Currently, Sears is facing fierce competition from companies like Walmart and Amazon in the online sales sector. The lack of sales and visits to physical stores is the main cause of its decline. This issue also seems to affect other chains like JC Penney, which also declared bankruptcy in 2020 and has closed 30% of its locations.
E-commerce is also suffering. Shein and Temu are also saying goodbye to the United States.