The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (2024)

Table of Contents
Richard W. Sears founded the R.W. Sears Watch Company in 1886 in Minneapolis, Minnesota. In 1895, Richard W. Sears began planning and writing the soon-to-be-famous Sears catalogs. The popular catalogs offered discounts on many items. Three years after Sears held its IPO — becoming the first major US retailer to do so — clothing mogul Julius Rosenwald took over as president. But at the end of World War I, farmers were hit with a severe depression, and Sears fell into "dire" financial shape. In 1925, the first Sears retail store opened in Chicago under the direction of business executive General Robert E. Wood. As the automobile became increasingly popular, Wood reasoned that customers could travel from near and far to visit Sears' department stores. In 1945, Sears reported $1 billion in sales — the equivalent of over $16 billion today. Sears stores were extremely popular, and the company's catalogs and "Wish Books" continued to bring in sales. Consumers loved Sears' signature low prices, and soon Sears' main market shifted from urban to suburban consumers. In 1951, the company released its newest mail-order automobile, the "Allstate," named after the Sears-owned insurance company. Sears reached new heights in 1969 by breaking ground on the Sears Tower in Chicago. From the end of World War II into the 1970s, Sears sales were at an all-time high. As malls grew in popularity throughout the 1980s, Sears became an anchor store in many plazas. However, the business was shifting. Changes came to the store floors, too. In 1986, Sears expanded into financial services with the launch of the Discover Card through Dean Witter Financial Services Group, a subsidiary of Sears. In 1990, Sears lost its spot to Walmart as America's biggest retailer. In the early 2000s, Kmart acquired Sears to form a new major company, Sears Holdings Corporation. In 2015, Sears' revenue fell from $36.2 billion two years prior to $25.1 billion. Many stores were left empty after employees were cut and the company's Shop Your Way rewards program began to flounder. As sales fell even further, Sears had no choice but to close many of its locations. In October 2018, the company officially filed for Chapter 11 bankruptcy. Sears took legal action against Lampert. The settlement cleared the way for Sears to emerge from bankruptcy. Since then, the company has slashed the number of stores nationwide.

US Markets Loading... h m s

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Homepage

Newsletters

Subscribe

Retail

Erin McDowell and Avery Hartmans

Updated

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (1)

  • Sears was once the largest retailer in the world, with a sky-scraping headquarters and legacy brand status.
  • What started as a humble mail-order watch and jewelry service in 1886 soon shot to popularity through its affordable catalogs.
  • But changes in consumer behavior and the retail landscape led to dropping sales and shuttered stores. Here is a timeline of the rise and fall of Sears.

Advertisem*nt

Richard W. Sears founded the R.W. Sears Watch Company in 1886 in Minneapolis, Minnesota.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (2)

Sears, a railroad station agent, started the mail-order watch and jewelry company as a way to supplement his income.

Sears relocated his business to Chicago in 1887 and, shortly after, hired Alvah C. Roebuck as a watch repairman. Sears sold his watch business in 1889.

In 1893, he founded another mail-order service with Roebuck, which the two named Sears, Roebuck and Company.

Advertisem*nt

In 1895, Richard W. Sears began planning and writing the soon-to-be-famous Sears catalogs.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (3)

After being purchased and reorganized by clothing manufacturing mogul Julius Rosenwald, the company began to grow exponentially.

The company specialized in selling low-cost merchandise to rural areas that did not have access to stores. These would-be customers would receive the Sears catalog in the mail. The catalogs shot the company to stratospheric popularity — today, many compare its rise to fame to that of Amazon.

Advertisem*nt

The popular catalogs offered discounts on many items.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (4)

Similar to a "no money down" offer, customers could send their Sears catalog ads to a company, receive the product, and pay for it once it arrived and they had inspected it.

Advertisem*nt

Three years after Sears held its IPO — becoming the first major US retailer to do so — clothing mogul Julius Rosenwald took over as president.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (5)

In 1906, Sears became the first major US retailer to sell its stock in an initial public offering. Goldman Sachshandled the IPO at the time. Preferred stock traded at $97.50 a share.

That year, Sears also opened its catalog plant and the Sears Merchandise Building Tower in Chicago.

In 1909, Rosenwald took over as president of the company.

See Also
THE DOWNFALL OF SEARS: 5 KEY REASONS WHY THE RETAIL GIANT WENT UNDER | InsightsWhen the Sears Catalog Sold Everything from Houses to Hubcaps | HISTORYSears to close Pasadena, Downey stores, leaving just 2 in Southern CaliforniaIs former retail giant Sears making a comeback?

Advertisem*nt

But at the end of World War I, farmers were hit with a severe depression, and Sears fell into "dire" financial shape.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (6)

Rosenwald was able to save Sears from the brink of bankruptcy by pledging $21 million of his personal fortune and other assets to save the company. By 1922, Sears had regained financial stability.

Rosenwald stepped down as Sears president in 1924, after which he dedicated his life to philanthropy. He donated millions of dollars to public schools, colleges, universities, museums, Jewish charities, and black institutions.

In 1925, the first Sears retail store opened in Chicago under the direction of business executive General Robert E. Wood.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (7)

In 1928, Wood officially became president of Sears, Roebuck and Company. He would stay on at the company in various high-level positions until his retirement in 1954.

Advertisem*nt

As the automobile became increasingly popular, Wood reasoned that customers could travel from near and far to visit Sears' department stores.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (8)

The first retail location set off a massive chain reaction of store openings. Seven more storesopened in 1925 alone, and by 1931, in-store sales had topped mail-order sales.

Sears also founded its Allstate Insurance Company in 1931 as a response to the rise in automobile ownership.

Advertisem*nt

In 1945, Sears reported $1 billion in sales — the equivalent of over $16 billion today.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (9)

Sears, relatively unfazed by the crash of 1929 and the subsequent Great Depression, saw its sales continued to hold steady.

Its sales in 1945 equate to about $16.4 billion today.

Advertisem*nt

Sears stores were extremely popular, and the company's catalogs and "Wish Books" continued to bring in sales.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (10)

Sears was one of the first department stores to cater to both men and women, as well as sell household goods and appliances.

Advertisem*nt

Consumers loved Sears' signature low prices, and soon Sears' main market shifted from urban to suburban consumers.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (11)

The Sears name soon became "synonymous with the suburban shopping experience."

With an increased focus on suburban living, Sears began to pay more attention to its automobile ventures.

Advertisem*nt

In 1951, the company released its newest mail-order automobile, the "Allstate," named after the Sears-owned insurance company.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (12)

The company had been selling cars as far back as 1909, but this stylish ride was certainly an upgrade from its motor buggy.

Advertisem*nt

Sears reached new heights in 1969 by breaking ground on the Sears Tower in Chicago.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (13)

The 110-story building cost $100 million to build. Upon its completion in 1973, it was the tallest building in the world — it would hold this title for more than two decades.

The Sears Tower, which was renamed the Willis Tower 36 years later, was used as an office for Sears' main merchandising group and company headquarters. Space in the building was also rented to outside tenants.

Advertisem*nt

From the end of World War II into the 1970s, Sears sales were at an all-time high.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (14)

By the middle of the century, Sears had over 350,000 employees in its ranks and was able to provide many of them a clear path to the middle class.

Employees were paid well, and the company's benefits allowed them to retire comfortably, according to The New York Times.

As malls grew in popularity throughout the 1980s, Sears became an anchor store in many plazas. However, the business was shifting.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (15)

In the early 1980s, Sears employees were informed they would no longer receive commissions from sales — this included sales of items like vacuum cleaners, cordless drills, and ready-to-wear clothing.

Advertisem*nt

Changes came to the store floors, too.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (16)

Before, store managers could choose which items they stocked in their stores. However, in an effort to make Sears stores more uniform, this option was taken away.

Many store managers felt slighted by this, as they could no longer stock more of the items they knew their customers wanted, according to CNBC.

Advertisem*nt

In 1986, Sears expanded into financial services with the launch of the Discover Card through Dean Witter Financial Services Group, a subsidiary of Sears.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (17)

Early versions of the Discover Card included small pictures of the Sears Tower.

According to the company, the first purchase made with a Discover Card was on September 17, 1985, by an employee at a Sears store in Atlanta, Georgia. The purchase was for $26.77.

Advertisem*nt

In 1990, Sears lost its spot to Walmart as America's biggest retailer.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (18)

That year, Walmart's sales rose to $32.6 billion, up 26%. Sears' sales, on the other hand, only rose 1.2%. However, the company's sales for 1990 still landed at $31.9 billion, according to CNBC.

In 1993, Sears discontinued its famous catalog to focus on in-store retail operations. Two years later, in 1995, the company spun out its largest subsidiary, the Allstate Corporation, which had grown from the insurance company Sears founded in 1931.

In an effort to attract more customers, the company also began offering car and electronic repair services in addition to its regular inventory of home goods, clothing, and appliances.

Advertisem*nt

In the early 2000s, Kmart acquired Sears to form a new major company, Sears Holdings Corporation.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (19)

Several changes were afoot in the early 2000s. In 2002, Sears purchased clothing company Lands' End for $2 billion. The next year, Sears sold its credit-card business to Citigroup in order to focus exclusively on its retail operations. At the time, the credit-card business was outpacing retail and accounted for 60% of Sears' annual profits.

In 2005, Sears completed its merger with Kmart, which had surpassed Sears to become the second-largest retailer in the United States, behind Walmart.

After Sears was purchased for a whopping $11 billion, both companies became subsidiaries of the newly formed Sears Holdings Corporation, with hedge fund manager Eddie Lampert as its chairman.

Advertisem*nt

Advertisem*nt

In 2015, Sears' revenue fell from $36.2 billion two years prior to $25.1 billion.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (20)

Increased competition with other big-box retailers and the rise of Amazon and online shopping took a bite out of Sears' profits.

Within the company, tensions were brewing between lower-level management, employees, and Eddie Lampert. In an effort to cut costs and turn the company around, Lampert began ordering underperforming stores nationwide to close.

In 2016, based on employee reviews from Glassdoor, 24/7 Wall St reported that Lampert was the most hated CEO in the US.

Advertisem*nt

Many stores were left empty after employees were cut and the company's Shop Your Way rewards program began to flounder.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (21)

Employees blamed deteriorating stores and employee shortages on Lampert.

"There are so many people running for the door not just because the ship is sinking, but because the captain of the ship is screaming at them, blaming it on them, and telling them it's their fault," one former vice presidenttold Insider in 2016.

Advertisem*nt

As sales fell even further, Sears had no choice but to close many of its locations.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (22)

In 2010, the company operated more than 3,500 Kmart and Sears stores. However, more than 3,000 locations have since closed.

Sears sales had tumbled from $43 billion in 2010 to less than $17 billion in 2017.

Advertisem*nt

In October 2018, the company officially filed for Chapter 11 bankruptcy.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (23)

At the time of the bankruptcy filing, Sears reported that fewer than 700 stores were still open and 68,000 employees remained.

Lampert stepped down as CEO after the company filed for bankruptcy but stayed on as chairman to oversee the bankruptcy proceedings.

In an effort to save the company from closing all of its stores, Lampert purchased the company out of bankruptcy four months later. The $5 billion deal preserved around 45,000 jobs from termination and meant that roughly 425 Sears and Kmart stores would remain open.

Advertisem*nt

Sears took legal action against Lampert.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (24)

In April 2019, Sears sued the former CEO and others, including former board members, claiming they had stolen billions of dollars from the retailer.

Lampert had turned down a $1.6 billion offer from Tommy Hilfiger to buy Lands' End, and Sears accused him of doing so to protect his hedge fund's equity stake in Lands' End. The suit also accused Lampert of having "reaped at least $490 million from a spinoff of Lands' End that did not benefit Sears."

"Altogether, Lampert caused more than $2 billion of assets to be transferred to himself and Sears' other shareholders and beyond the reach of Sears' creditors," the lawsuit alleged. In a statement at the time, Lampert's ESL Investments called the allegations "misleading or just flat wrong."

The suit wasn't settled until 2022, when a court approved an agreement to resolve the litigation. Sears agreed to a $175 million settlement in which Lampert and the other defendants did not admit to any wrongdoing, according to Retail Dive.

Advertisem*nt

The settlement cleared the way for Sears to emerge from bankruptcy. Since then, the company has slashed the number of stores nationwide.

The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (25)

What was once America's largest retailer now operates just 15 full-line stores in the US — Kmart has only three, down from over 2,000.

And in December, Sears Hometown, a home goods division that spun out of Sears in 2012, filed for Chapter 11 bankruptcy protection.

After managing to survive two World Wars and the Great Depression, Sears has no doubt fallen victim to what's been dubbed"the retail apocalypse."

Read next

Retail

Advertisem*nt
The rise and fall of Sears. Once the world's largest retailer, it now has just 15 stores left. Here's how changing consumer habits took down a one-time powerhouse. (2024)
Top Articles
How a Model Scout Can Tell If You're the Next Big Thing
The Best Foods to Eat Before Bed, According to Nutritionists
D Train Stops | NYC Metro D Train Schedule
D Train (6 Avenue Express) Line Map
Page 1826 – Epic Dope
The History of the “Forbidden” Fruit
Age of War – Kapitel 4 ist da! Jhebbal Sag ruft! - Conan Exiles
Server Settings Explained For Conan Exiles
Papyrus Boss Fight Simulator
My Dog Has Google Feud Answers – Vet Explains Pets
How The Last Kingdom Season 5 Ending Sets Up the Movie
The Last Kingdom Recap: What You Need to Know Before Seven Kings Must Die
Latest Posts
To determine the effect of wearing shoe covers by medical staff and visitors on infection rates, mortality and length of stay in Intensive Care Unit
What Is the Meaning of Mass Market?
Article information

Author: Kelle Weber

Last Updated:

Views: 5893

Rating: 4.2 / 5 (73 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Kelle Weber

Birthday: 2000-08-05

Address: 6796 Juan Square, Markfort, MN 58988

Phone: +8215934114615

Job: Hospitality Director

Hobby: tabletop games, Foreign language learning, Leather crafting, Horseback riding, Swimming, Knapping, Handball

Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.