As Sears Faces Demise, What Can Be Learned From its Legacy?

As 2025 drew to a close, only five Sears locations remained in operation stateside -- in Braintree, Massachusetts; Concord, California; El Paso, Texas; Orlando, Florida; and Coral Gables, Florida. That's a paltry number compared to the countless locations the retailer once boasted across North America, having become a retail institution since having been founded in the late 1800s.

"If this is really the final chapter of one of the country’s most storied retailers, then it will represent the chronicle of a retail death foretold, reflecting not only changing consumer behavior but also mismanagement and poor strategy," wrote Forbes contributor Mark Faithfull in a recent analysis.

A large constituent piece of Sears' downfall is laid at the feet of hedge fund manager Edward Lampert, who managed a controversial takeover of Sears over two decades ago, in 2003. Following that, a merger with Kmart was enacted, in the hopes of reviving the fortunes of two businesses in decline.

"But in truth the bet was less on a phoenix-like retail revival and more on the latent value of the company’s enormous property portfolio. Sears owned much of the real estate for its vast network of stores, an asset Lampert believed could be unlocked even as the retail business withered," Faithfull wrote.

Sears, Once the 'Amazon of the Gilded Age' and Then a Retail Titan For Much of the 21st Century, on its Last Legs

From its position as the "Amazon of the Gilded Age," as Heroes, Heroines, and History dubbed it, to its position as a mainstay of '70s and '80s families through its iconic Wishbook catalogs, Sears now faces complete extinction after a less than stellar recent history.

As Faithfull pointed out, neither of Lampert's stated goals for Sears materialized. The retailer failed to make inroads following the Kmart team-up, continually losing ground to competitors -- particularly as e-commerce began making rapid gains, and Walmart and other physical retail giants gobbled up market share.

"Many reasons have been cited for the company's demise.  Critics claim the company made many mistakes and couldn’t keep up with the likes of Walmart and Amazon. This might be true, but Sears taught America how to shop and for that reason, its legacy will no doubt remain intact," HH&H recounted.

Now, Seritage Growth Properties, a REIT explicitly and solely designed to maximize value from Sears' locations, stares down the very end of the line for its remaining Sears holdings. Shares have tumbled to $3.33 as of Jan. 2, from a high of $50, and Seritage may now be looking to get out of the game entirely.

“The goal is to sell the remaining Seritage assets as quickly and profitably as possible, but we are also very open to an alternative transaction that could enhance shareholder value,” Adam Metz, CEO of Seritage, told the New York Times.