Sears Opening New Stores Again Discreetly

Despite common belief among most consumers that the American retailer Sears has disappeared, the truth unveils Sears opening new stores. This once revolutionary department store chain that transformed the shopping experiences of Americans struggles to maintain a physical presence, following a bankruptcy in 2018 and a succession of store shutdowns. However, Sears might be down, but it’s not out yet.

In late October, a once-closed Sears store in Burbank, California, subtly resumed operations. Not long after, another store reopened in Union Gap, Washington.

According to CNN, the new Sears still holds echoes of its past, a relic from an era when department stores dominated the American shopping scene. The store was organized and well-maintained, but customers were scarce. The newly reopened Burbank store seemed similar to a classic Sears store of 2005 when Eddie Lampert, a hedge fund operator, acquired the chain for $11 billion and merged it with Kmart, another retailer under his control. Back then, the two brands boasted 3,500 stores across the U.S., employing over 300,000 employees.

Lampert’s acquisition of Sears was seen by many as a move in the real estate market. What he plans to do with the brand in the future is somewhat of a mystery. The brand is now managed under a holding company known as Transformco, which didn’t respond to multiple calls and emails from CNN.

The revived Sears in Burbank is nothing out of the ordinary in terms of American department stores. The ground floor is filled with mattresses, appliances, and various home goods. An escalator ride takes you to a floor filled with clothing, bags, and accessories. Another ride upward leads to a third floor, but it is currently inaccessible, “with signs promising something would be coming soon.”

A year after this iconic retailer filed for bankruptcy, Lampert’s hedge fund purchased the remnants of Sears, renaming the parent entity to Transformco. Sears emerged from bankruptcy with 223 stores and 202 Kmarts across the nation under its ambit, but most of these outlets have shut down in the past four years.

Sears has seen a tumultuous journey in recent years. Post Lampert’s takeover, sales started to slow down, and this can be attributed to multiple factors, including a delayed foray into e-commerce, increased competition, and a lack of store investment. 

While the future of Sears remains uncertain, Simeon Siegel, a retail analyst at BMO Capital Markets, believes in the potential for a powerful brand like Sears to bounce back, even in the digital age. According to Siegel, big stores offering a wide array of curated products can still thrive.