Land’s End, a clothing brand that was once a big draw when Sears purchased it in 2002 but was spun off in 2014, is nearing the end of its remaining leases, due to expire next month. Now, Land’s End clothing is on clearance, and Sears was even selling its mannequins at the Jersey City store for $75, with an additional 60% Black Friday discount. Empty paint cans were marked down to $2 each with the discount.
Peter Doliente bought himself a Seiko watch at the store for $200, down from $500.
“There’s not much customers around,” the teacher from Jersey City said. “I was surprised when I went to the parking lot. Normally it would be packed at this time.”
Sears once towered over the retail landscape but has been on a slow decline for years. Lampert combined Sears and Kmart in 2005, pledging to return Sears to greatness. That didn’t happen. Sears was hit hard during the recession a decade ago and never recovered.
Selling well-known brands, like its Craftsman tools, and spinning off stores were cash infusions that helped Sears survive. Lampert lent some money of his own, but critics say he never invested in the stores, which grew increasingly dingy.
Even after all of Sears’ pain, Lampert argued during its bankruptcy that he was its best chance. Industry experts remain skeptical of his ability to revive Sears, saying he is still neglecting stores.
“I don’t think this was a surprise to anyone,” said Scott Stuart, CEO of Turnaround Management Association, whose members include corporate turnaround experts and store liquidators. “It was more a surprise that (Lampert) publicly determined that this was something salvageable.”
In a statement, Transform Holdco, the owner of Sears managed by Lampert, said that it “faced a difficult retail environment and other challenges” and it’s working to “prune its operations.” The company said in November that it got another $250 million in financing.
That’s no solace to employees like Victor Urquidez, the assistant manager at a Sears Auto Center in Chula Vista, California, who said he will be losing his job when the store closes in late December.
“We were expecting it,” said Urquidez, who has watched deliveries shrink from 100 tires at a time two years ago to nine today. “We knew it was going to happen.”
What comes next for Sears? There’s little optimism. While there are plenty of vendors still sending in goods, the rescue plan has barely begun and shoppers simply have far better options elsewhere.
“It’s dead man walking,” said Craig Johnson, president of Customer Growth Partners, a retail consultancy. “It’s entirely possible that next Christmas, Sears won’t be around as currently structured.”
Associated Press
