Behind the Revival: The Silent Return of Troubled Retailer Sears
Sears surprises skeptics as it reopens two stores, sparking hope for a comeback After years of bankruptcy and closures, the retailer's revival effort raises questions about its seriousness and potential for success
Sears, one of America's oldest retailers, may seem like it's struggling to survive to the average shopper. After a 2018 bankruptcy and numerous store closures, the department store chain has a much smaller physical presence than it once did. However, recent events suggest that reports of Sears' demise may be premature. In the past two months, a Sears location in Burbank, California, and another in Union Gap, Washington, have quietly reopened their doors after previously being closed.
Inside Sears revived Burbank store
I frequented the recently opened Burbank store multiple times last month, including on Black Friday, which is the busiest shopping day for retailers, in order to experience the storied brand. The new Sears bears a striking resemblance to the old one, a relic from a time when department stores dominated America's shopping landscape. Although the store was mostly empty of shoppers during my visits, those who did stop by, as well as some store associates, expressed optimism and enthusiasm for a new era for Sears.
The newly revived Sears in Burbank resembles a classic American department store, with a range of goods like mattresses, appliances, and home items on the ground floor. A trip up the escalator reveals a selection of clothing, bags, and accessories. Unfortunately, the third floor was closed off during my visit, with signs teasing upcoming additions. Despite its cleanliness and organization, the store seemed to be lacking in shoppers.
The appliances section at Sears in Burbank, CA advertising discounts on washers and dryers, on December 1.
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The apparel and accessories section at the Sears store in Burbank, CA, on December 1.
Samantha Delouya/CNN
After closing a year ago, the Burbank location has reopened and bears a resemblance to the typical Sears store in 2005. Back then, billionaire Eddie Lampert acquired the chain for $11 billion and combined it with Kmart, resulting in a total of 3,500 US stores and over 300,000 employees. Currently, there are only 12 remaining Sears stores in the continental US, as per data from Google Maps. An announcement in the Union Gap, WA Facebook group has confirmed the reopening of store locations.
Some speculate that Lampert utilized the Sears acquisition as a strategic move in the real estate market. His future plans for the brand remain vague. All attempts to obtain a clear answer were unsuccessful. The brand now operates under a holding company called Transformco. Numerous calls and emails to Transformco's main line and executives went unanswered over several weeks. The manager of the Burbank stores provided a phone number for Sears media department; however, the number was out of service.
The entrance to the newly reopned Sears store in the Burbank Town Center mall on December 1.
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The home goods and furniture section of Sears in Burbank, CA, on December 1.
An associate at a Burbank store, who preferred not to disclose their name due to company policy, shared that they had worked at several Sears locations for many years and expressed gratitude for the opportunity to return.
The person expressed their fondness for Sears, saying, "They have always treated me well." I have no personal recollection of Sears during its peak, as I was born just one year before the retailer ceased its pioneering catalog in 1993. The Sears catalog, which revolutionized the way Americans lived half a century ago, allowed individuals to shop from anywhere without depending on nearby stores. It was an early form of online shopping.
Sears expanded and established its own brands, such as Kenmore appliances, Craftsman tools, and Allstate insurance, becoming a major force in the industry. The company employed numerous workers to produce and sell its products in the growing number of Sears stores. The Sears Tower in downtown Chicago, where the corporate parent was located, held the title of the world's tallest skyscraper until 1998. Several Burbank store employees believed that their location might be used as a test for Transformco, the parent company owned by Lampert, the former CEO of Sears. They were hopeful that if their store performed well, it could lead to the opening of more locations and a potential revival of the Sears brand.
How serious is Sears relaunch effort?
Neil Saunders, managing director of GlobalDatas retail division, had a different view of Sears relaunch.
"He doesn't seem to be making a genuine effort to revive it," he commented. Saunders suggested that Sears may be struggling to find tenants for some of Transformco's retail properties because of the difficulties the retail industry is currently facing.
Saunders explained, "I believe there are numerous locations where retailers are reluctant to lease out the space. The prevailing view is that if no one is willing to lease it, instead of letting it sit idle, it's better to attempt to monetize it."
The apparel section of the reopened Sears in Burbank, CA offering up to 60% off of clothing on December 1.
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The ground floor entrance of the reopened Sears store in Burbank, CA, on December 1.
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A seasonaly holiday decorations display sat next to the luggage section at the reopened Sears store in Burbank, CA, on December 1.
Samantha Delouya/CNN
Sears, with its large space, has surprisingly few tenants, and not many department stores are opening new outlets. On Black Friday, there were noticeably fewer shoppers in Sears compared to other stores in the Burbank Town Center mall where it is located. An associate at Sears expressed their hope for a busier day at the store.
"Welcome back" banners decorated the storefront, but it seemed like not many people were aware of its reopening. The news was only shared on the local Burbank Facebook page for Sears. Daisy Davis, a shopper, discovered the Burbank store had reopened after chatting with her neighbor about Sears, leading her to search online for open locations.
"Sure enough, it said this one was opening. Theres still conflicting information too, because some of the maps say its closed," she said.
Bankruptcy and closures in recent years
The Sears brand has experienced a tumultuous journey for several years. Following Lampert's takeover, the 137-year-old retailer faced a decline in sales due to insufficient investment in store updates, a slow transition to e-commerce, and heightened competition from other large retail chains and emerging online giants like Amazon.
In 2018, the company filed for bankruptcy and the following year, Lampert's hedge fund acquired the remaining business assets and rebranded the parent company as Transformco. Upon emerging from bankruptcy, the retailer had 223 Sears and 202 Kmart stores across the country. However, most of these stores have since closed down over the span of four years.
A dismantled sign leans outside a Sears store in Nanuet, New York, one day after it closed in 2019.
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Businessman Richard W. Sears initially sold watches as a side business while working as a railroad station agent in North Redwood, Minnesota in 1886. In 1887, he relocated to Chicago and partnered with watchmaker Alvah Roebuck to establish a catalog business selling watches and jewelry. The company was officially incorporated as Sears Roebuck in 1893.
The cover of a Sears Roebuck and Co. catalog in the fall of 1900. The Sears catalog was the way many Americans first started to buy mass-produced goods.
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A Sears, Roebuck and Co. store in El Paso, Texas, circa 1940. Sears' stores helped reshape America, drawing shoppers away from the traditional Main Street merchants.
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Sales clerks go on strike in Chicago circa 1946.
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A Sears store in Jackson, Mississippi, in 1949.
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People vote inside a Sears store in Tucson, Arizona, in 1953.
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A woman receives a cosmetics consultation at a Sears store in Caracas, Venezuela, circa 1953.
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A worker goes over files in Sears' catalog office.
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Cars fill a parking lot outside a Sears store, circa 1958.
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Sales clerk Lucille Jagusch shows drapery samples to shopper Arlene Hardt at a Sears store in Niles, Illinois, in 1961.
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People shop inside a Sears store in Morton Grove, Illinois, in 1961.
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Soldiers guard a Sears store in Baltimore after riots broke out following the assassination of Martin Luther King Jr. in 1968.
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People watch the Apollo 11 rocket launch at a Sears store in White Plains, New York, in 1969.
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A steelworker played a crucial role in the construction of the Sears Tower in Chicago. When Sears' new headquarters was completed in 1973, it held the title of the world's tallest building until 1998. Eventually, Sears sold the building in 1994.
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A customer shops in Woodfield, Illinois, in 1991.
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A woman works at a Sears in Hicksville, New York, in 1994.
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Seth Meyers, left, and Hugh Jackman play Sears photographers during a "Saturday Night Live" skit in 2001.
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In 2005, Kaylin Wilson arranges children's clothing at a Kmart in Nashua, New Hampshire. This particular store made history as the first Kmart in the nation to start receiving Sears merchandise following a merger that created the third largest retailer in the country after a vote by stockholders.
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Black Friday shoppers duck under the opening door of a Sears store in Mentor, Ohio, in 2011.
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A woman in Mississauga, Ontario, looks at used store furniture for sale in 2018. The Sears location was closing forever.
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Shoppers wait in line by an empty rack of jeans during a 2019 Black Friday sale at a Sears store in Hialeah, Florida.
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Residents cast their vote in the 2020 presidential election at a shuttered Sears store in Janesville, Wisconsin.
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In 2020, Cesar Villasenor was seen cleaning the area in front of an empty Sears store in Santa Monica, California. The building has since been renovated at a cost of $50 million, transforming it into a multifunctional space that includes offices, restaurants, and retail facilities with an Art Deco style.
A police sergeant receives a Covid-19 vaccination in a former Sears store at the Townsquare Mall in Rockaway, New Jersey, in 2021.
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People arrive to receive Covid-19 shots in 2021 at a vaccination site in a former Sears store at the Lake Square Mall in Leesburg, Florida.
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In Schaumburg, Illinois, in 2021, Patti Naleck was spotted pushing a cart containing a mannequin through a Sears store that was on the brink of permanent closure. Naleck revealed that she intended to utilize the mannequin for Halloween displays.
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In pictures: The rise and fall of Sears
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Upon speaking with Sears shoppers, it was evident that they shared the same excitement as the store employees about the reopening. "I'm thrilled that they have reopened. It feels like the Sears I remember, and that's a positive thing," stated Katherine Sage, a shopper who visited Sears to purchase a polo shirt for her son. She added, "I believe they offer quality products, especially their mattresses."
80-year-old retiree Armita Cohen frequented the Burbank location after her local Glendale, CA store closed. She expressed confusion over the closure, calling it a "wonderful store." Cohen praised Sears for being her one-stop shop for Christmas shopping.
Cohen said she was "crossing her fingers" that the Glendale store would reopen.
Could Sears make a comeback?
According to Simeon Siegel, a retail analyst at BMO Capital Markets, there is potential for a comeback for established brands like Sears, even in the digital age. He believes that large stores that offer a curated selection of products are thriving.
"He mentioned that the value of a brand name, even after the business has closed, is a well-established concept. For example, another company quickly acquired Bed Bath and Beyond's intellectual property after its closure, showing that a brand is resilient. At least one shopper expressed optimism about Sears' potential for a successful future if it can appeal to a more modern customer base."
Sage suggested that they should seek input from the younger generation to better understand their preferences. Standing outside the Burbank Sears, she emphasized the importance of retaining popular products while also introducing innovation. This report includes contributions from CNN's Chris Isidore.
