Sears

Sears, Roebuck and Co.
	File:Sears logo.svg Logo used since 2016
Company type	Subsidiary
Industry	Retail (department store, e-commerce)
Founded	1892; 134 years ago
Founder	Richard Warren Sears, Alvah Curtis Roebuck
Headquarters	Hoffman Estates, Illinois, United States
Area served	United States
Products	Apparel, footwear, bedding, furniture, jewelry, beauty products, electronics, home appliances, housewares, tools, toys, automotive repair services
Parent	Transformco
Website	www.sears.com

Sears, Roebuck and Co., widely recognized simply as Sears ( ), is a prominent American department store chain and e-commerce retailer established in 1892 by Richard Warren Sears alongside Alvah Curtis Roebuck. The business was reorganized in 1906 under the leadership of Richard Sears and Julius Rosenwald, transitioning from its origins as a mail-order catalog enterprise to launching physical retail outlets beginning in 1925, with the inaugural store located in Chicago. Throughout the 1980s, Sears held the position as the largest retailer within the United States.

In 2005, a major transformation occurred when Sears merged with Kmart to create Sears Holdings, signaling a pivotal change in its operational strategy. By 2018, the company was ranked as the 31st-largest retailer across the U.S. Following years marked by declining revenue, Sears Holdings filed for Chapter 11 bankruptcy protection on October 15, 2018. After a bankruptcy auction held in January 2019, Sears announced plans to maintain operations with a streamlined portfolio of 425 stores, which included 223 Sears-branded locations.

The company is headquartered in Hoffman Estates, Illinois, having previously occupied offices in Chicago’s iconic Willis Tower from 1973 until relocating in 1992. On December 12, 2022, Sears Authorized Hometown Stores, LLC along with its affiliate debtor Sears Hometown, Inc. filed for Chapter 11 bankruptcy, initiating liquidation proceedings for its remaining network of 115 owner-operated Hometown stores.

Business Profile

Sears offers a diverse range of products including apparel, footwear, bedding, furniture, jewelry, beauty items, electronics, home appliances, housewares, tools, toys, and automotive repair services. In 2016, the company generated revenues amounting to US$13.8 billion but reported an operating loss of $1.448 billion.

Since becoming a subsidiary of Transformco in 2019, Sears continues to operate predominantly within the United States with eight stores as of 2025. The company’s strategic focus remains on preserving essential retail functions while adjusting to shifting consumer preferences and intensifying market competition.

Founders and Leadership

Founded by businessman Richard Warren Sears and inventor Alvah Curtis Roebuck, Sears expanded significantly under influential executives such as Julius Rosenwald. The corporate framework evolved through various mergers and acquisitions designed to navigate industry challenges. Leadership throughout its history has prioritized innovation in retail formats and catalog sales during periods of expansion.

Market Impact and Competitive Edge

Once a dominant force in retail innovation, Sears capitalized on its mail-order catalog as a key competitive strength. Nevertheless, evolving consumer preferences and heightened rivalry have influenced its financial results and international presence. The company remains committed to serving specialized market segments and sustaining brand significance through focused investments.

Financial Results and Expansion Efforts

Although Sears Holdings and its affiliates faced financial difficulties leading to bankruptcy proceedings, ongoing restructuring efforts seek to stabilize income and enhance operational efficiency. The company’s investment approach emphasizes prudent asset management and strategic store closures aimed at boosting profitability while safeguarding essential brand elements.

Organizational Framework and Affiliates

Sears has evolved from an autonomous retailer into a subsidiary under larger corporate holdings. Its portfolio includes entities such as Sears Authorized Hometown Stores LLC, among others. These subsidiaries illustrate attempts to broaden business activities while addressing liabilities amid restructuring processes.

Industry Acclaim and Executive Strategy

Sears earned recognition for its innovative retail practices and catalog marketing techniques that influenced the sector. Leadership has concentrated on managing economic challenges through restructuring measures and leveraging the brand’s heritage to retain customer loyalty.

Origins

Richard Warren Sears, born in 1863 in Stewartville, Minnesota, started his professional life as a railroad station agent. After buying undelivered watches and reselling them for profit, he established the R.W. Sears Watch Company in Minneapolis in 1886. In 1887, he partnered with watch repair expert Alvah Curtis Roebuck, relocating the enterprise to Chicago where they introduced their inaugural mail-order catalog featuring watches, diamonds, and jewelry.

In 1889, Sears sold the company for $100,000 and briefly entered the banking sector before returning to Chicago in 1892 to launch a new mail-order business with Roebuck. By September 1893, the firm was renamed Sears, Roebuck, and Co. and broadened its merchandise beyond timepieces.

Sears transformed rural retail by providing an extensive range of products at fixed prices through catalogs, challenging local general stores that depended on credit sales and price negotiation. This method also enhanced fair access to goods for underserved communities during the Jim Crow period.

By 1894, the catalog had expanded to 322 pages, offering items such as sewing machines, bicycles, sporting equipment, and automobiles manufactured by Lincoln Motor Car Works (1905–1915). Sales increased from $400,000 in 1893 to more than $750,000 by 1895. By 1896, the catalog included dolls, stoves, and grocery items.

The economic downturn triggered by the Panic of 1893 led to financial difficulties and excess inventory. Co-founder Roebuck left the company in 1895. Sears sold Roebuck’s stake to businessman Aaron Nusbaum, who involved his brother-in-law Julius Rosenwald, a creditor of Sears. They purchased Roebuck’s share for $75,000 and restructured the company with $150,000 in capital stock. This transaction marked a significant change in leadership and corporate structure that propelled future growth.

Early 20th century

Following their acquisition of Nusbaum's stake for $1.3 million in 1903, Sears and Rosenwald broadened the mail-order enterprise to include a wide variety of goods such as dry merchandise, durable consumer products, pharmaceuticals, hardware, and furniture designed specifically for agricultural families.

This expansion culminated in a $40 million initial public offering in 1906, resulting in the formation of Sears, Roebuck and Company incorporated in New York. The IPO was a significant event in retail history, representing a major financial achievement within the consumer industry. Sears traded on the stock exchange under the symbol S and was included in the Dow Jones Industrial Average from 1924 until 1999.

In 1906, the company inaugurated its catalog plant along with the Merchandise Building Tower on Chicago’s West Side. This facility became the corporate headquarters for nearly seven decades until 1973 and continued to support mail-order operations until 1995, occupying a 40-acre site.

By 1907, under Rosenwald’s guidance as vice president and treasurer, annual revenues had climbed to about $50 million. Sears stepped down as president in 1908 due to health complications, after which Rosenwald took over full leadership as president and chairman.

The acquisition of the David Bradley Plow Company in 1910 marked Sears' entry into manufacturing riding mowers, chainsaws, and tillers at Bradley’s Illinois factory.

The company encountered significant difficulties during the post-World War I economic downturn (1919–21), leading Rosenwald to personally inject $21 million in 1921 to restore financial stability. By 1922, Sears had returned to sound fiscal footing.

Brick and mortar

Rosenwald redirected the company’s focus toward urban markets and appointed Robert E. Wood to spearhead this initiative. Wood managed the planning and construction of Sears' first department store within the Sears, Roebuck, and Company Complex, which opened its doors in 1925. Rosenwald resigned as president in 1924 but kept his role as chairman until his death in 1932 to devote more time to philanthropic efforts.

The first store debuted on February 2, 1925, in Chicago’s North Lawndale neighborhood. Although it was situated outside the city center, its success prompted numerous additional openings across the country, typically near mail-order facilities. These stores targeted working-class and lower-middle-class communities rather than traditional downtown shopping districts. This strategy capitalized on extensive streetcar routes and growing automobile ownership to attract shoppers.

Sears stores distinguished themselves by establishing locations away from central business areas while embracing modern architectural designs by George C. Nimmons that emphasized merchandising efficiency. They offered an unusual product assortment and featured generous free parking alongside a strong corporate brand presence. During the 1930s, Sears introduced fully air-conditioned stores without windows—such as the 1939 Sears-Pico in Los Angeles—the first with an open-plan sales floor.

The retailer also broke new ground by creating department stores that served men and women equally, combining hardware and building supplies with practical apparel lines. Customers were encouraged to shop independently, reflecting a transition toward self-service retail models.

Catalog

In 1933, Sears introduced its first Christmas catalog called the Sears Wishbook, which focused on toys and gift items separate from its traditional annual Christmas Catalog. Between 1908 and 1940, Sears also offered ready-to-assemble Sears Catalog Home kit houses through its catalogs.

Americas

In 1942, Sears inaugurated a store in Downtown Havana, Cuba, followed by its initial Mexican location in Mexico City in 1947. The Mexican division eventually became Sears Mexico, now under the ownership of billionaire Carlos Slim's Grupo Sanborns, operating more than 75 outlets as of 2020. By 1953, Sears had reported sales totaling US$78 million across various international markets and had expanded its presence into Brazil, Colombia, Cuba, Ecuador, Peru, Puerto Rico, Venezuela, and Central America. As of 2024, the company's operations are concentrated mainly in Mexico, Guatemala, El Salvador, and Puerto Rico.

Expansion

From the 1920s through the 1950s, Sears established numerous urban department stores throughout the U.S., Canada, and Mexico, gradually transitioning its emphasis from mail-order catalogs to physical retail locations. Following World War II, the company extended its reach into suburban shopping malls and founded the Homart Development Company in 1959 to oversee mall development projects. Early diversification included launching Allstate Insurance Company in 1931 and incorporating Allstate insurance services within Sears stores by 1934.

Sears cultivated a robust market position through nationally recognized brands such as Kenmore, Craftsman, DieHard, Silvertone, Supertone, and Toughskins apparel. The company extensively utilized private label branding strategies, including rebranding items like the Sears Archer 600 typewriter.

The popularity of Sears' outdoor equipment attracted antitrust attention. The acquisition of David Bradley enhanced its production of farm and lawn machinery; however, by 1962 it divested half of this operation after surpassing John Deere in plow sales. This manufacturing facility was subsequently purchased by Roper Industries.

1970s pinnacle

The 1970s marked Sears' zenith. In 1974, it completed construction of the Sears Tower in Chicago—a 110-story skyscraper that became the tallest building worldwide at the time, overtaking New York's Twin Towers. Although Sears sold the tower in 1988, it retained naming rights until 2003; the building continued to bear the Sears name until 2009 when Willis Group Holdings acquired naming rights to attract tenants. Between 1993 and 1995, Sears relocated its corporate headquarters to Prairie Stone Business Park located in Hoffman Estates, Illinois. Adjacent to this site is the Sears Centre Arena (renamed NOW Arena in 2020), a multi-purpose venue with seating for 10,001 spectators.

Mail order

The Sears catalog—often referred to as "the Consumers' Bible"—was fundamental to the company's business strategy and market dominance. Post-World War II, it expanded international sales through orders from occupied regions such as Greenland and the Philippines. This catalog provided a crucial retail outlet for rural customers, notably African-Americans living in segregated areas, offering an alternative to discriminatory local merchants. However, as urbanization increased and competition from city department stores intensified, along with a decline in rural populations and spending capacity, the catalog's market share steadily diminished.

Decline

Throughout the 1980s, Sears diversified beyond retail by acquiring Dean Witter and Coldwell Banker in 1981, launching the Prodigy internet service jointly with IBM in 1984, and introducing the Discover credit card in 1985. These initiatives diverted management’s focus away from core retail operations, enabling competitors such as Walmart to surpass Sears as America's largest retailer by 1990.

During the 1990s, Sears divested numerous non-retail assets to enhance financial performance: it spun off its financial services divisions including Dean Witter Reynolds and Discover Card and sold its mall management arm Homart in 1995. The company acquired hardware retailer Orchard Supply Hardware in 1996 and launched The Great Indoors home improvement stores in 1997.

Due to declining profits and sales, Sears discontinued its costly general merchandise catalog in 1993, resulting in a workforce reduction of approximately 50,000 employees. In 1992, Sears recorded a $3.9 billion loss—the largest ever reported by an American retailer at that time.

Legal challenges also affected Sears: California filed suit against the company for fraudulent auto repairs in 1992, culminating in criminal charges by 1997. In 1998, Sears divested Western Auto’s remaining assets to Advance Auto Parts, becoming a significant shareholder with a 40% stake while integrating store networks. In 1997, it sold an 85% interest in its Mexico affiliate to Grupo Carso. Sears maintained specialty catalogs and reintroduced a smaller Holiday Wish Book edition in 2007.

In 2003, Sears sold its U.S. retail credit card business to Citibank, followed by selling its Canadian credit card operations to JPMorgan Chase in 2005. That same year saw the launch of Sears Grand stores—larger-format outlets featuring an expanded product assortment.

On November 17, 2004, following Kmart's bankruptcy proceedings, Kmart Holdings acquired Sears for $11 billion to form Sears Holdings Corporation (NASDAQ: SHLD). This newly created entity managed both Sears and Kmart brands. Some Kmart locations were renovated into Sears Essentials stores and later converted into Sears Grands. Combined profits peaked at $1.5 billion during 2006.

By the start of the next decade profitability deteriorated significantly; between 2011 and 2016 Sears incurred losses totaling $10.4 billion. Its debt load ($4.2 billion early in 2017) exceeded market valuation ($974 million), while store count shrank dramatically from over 3,500 locations in 2010 to just 695 by 2017. Sales declined by more than 10% during late 2016 compared with the prior year.

In efforts to mitigate losses, Sears divested assets including Lands' End and its stake in Sears Canada—an e-commerce leader with Can$505 million revenue in 2015—aiming for a more technology-focused model. CEO and principal shareholder Eddie Lampert utilized these funds to support transformation initiatives. The company introduced a loyalty program called Shop Your Way designed to enhance customer retention.

Lampert also negotiated selling the Craftsman brand to Stanley Black & Decker for approximately $900 million. In October 2017, Sears ended its long-standing collaboration with appliance manufacturer Whirlpool Corporation, although Whirlpool continued supplying Kenmore appliances. By May 2018, Sears had established a committee tasked with evaluating potential sales of the Kenmore brand.

Bankruptcy and Current Operations

On September 24, 2018, the CEO of Sears cautioned that the company was approaching a critical deadline to salvage its business. Sears Holdings proceeded to file for Chapter 11 bankruptcy protection on October 15, 2018, just before a $134 million debt obligation was due. By November 23, 2018, Sears Holdings had put up for sale 505 retail locations, including 266 Sears stores, while planning to liquidate others.

On January 16, 2019, it was announced that Sears would continue operations after CEO Eddie Lampert succeeded in a bankruptcy auction to maintain around 400 stores. A bankruptcy court approved a $5.2 billion restructuring plan on February 7, which preserved approximately 425 outlets—including 223 Sears stores—and retained about 45,000 employees.

In April 2019, Sears introduced three new compact-format outlets branded as Sears Home & Life. That same month witnessed store closures at Windward Mall in Hawaii and Oakbrook Center in Illinois—the first shutdowns following ESL’s acquisition.

On June 3, 2019, Transform Holdco declared intentions to acquire Sears Hometown & Outlet Stores but indicated that divestiture of Sears Outlet might be necessary for regulatory approval. By August 2019, Sears revealed plans to shutter 26 stores by October—including its final locations in Alabama and West Virginia—while simultaneously accelerating the rollout of smaller store formats such as Home & Life and Sears Hometown. An additional 92 closures were scheduled by the end of the year.

Towards the end of 2019, Sears divested its DieHard brand to Advance Auto Parts for $200 million. By December of that year, another hundred stores had ceased operations; February 2020 saw the closure of an additional 51 Sears locations. The trend of store shutdowns persisted throughout 2020 and into 2021, including the closure of the last store in Maine at The Maine Mall.

As of September 2021, only 35 Sears stores remained open. That month included announcements of further closures—among them the last store in New York City—which closed by November with possible redevelopment plans underway. In December, Transformco disclosed intentions to sell the company’s headquarters and surrounding property in Hoffman Estates.

On January 19, 2022, all remaining Sears Auto Centers across the United States were shut down. In May of that year, roughly 100 more Sears Hometown stores—including Michigan’s final four—were announced for permanent closure. Later in December 2022, Sears Hometown filed for Chapter 11 bankruptcy and subsequently liquidated all remaining outlets.

Currently, eight Sears stores remain operational—seven located within the continental U.S. and one in Puerto Rico—with the corporate website still functioning for online sales. The most recent store closure took place on December 15, 2024, in Tukwila, Washington.

Demolition work on the former Hoffman Estates headquarters commenced in August 2024.

The Sears outlets situated in Whittier and Burbank, California, along with San Juan, Puerto Rico, are slated to close during summer 2025; following these closures, only five Sears locations will continue operating.

Sponsorships

Before entering bankruptcy proceedings, Sears held naming rights from 2006 until 2020 to an 11,000-seat multi-purpose venue in Hoffman Estates known as the Now Arena. The company also sponsored television programs such as Extreme Makeover: Home Edition and supported Mister Rogers' Neighborhood through The Sears-Roebuck Foundation from its debut in 1968 until 1992.

Via its Sears Auto Centers division, the company backed various motorsport events including sponsoring the Formula Drift Darren McNamara Sears/Falken Saturn Sky drift car. The Craftsman brand served as title sponsor for the NASCAR Truck Series from its launch in 1995 through the conclusion of the 2008 season. Additionally, Sears Auto Center sponsored the #10 Gillett Evernham Motorsports vehicle during a NASCAR race in 2007. In 2016, Craftsman became the title sponsor for the World Racing Group’s World of Outlaws Sprint Car series.

Employee Relations

Sears has continually encountered difficulties in managing its workforce relations. In 1992, the company transitioned from a tenure-based hourly wage system to a structure featuring a base pay—commonly ranging from US$3.50 to $6 per hour—augmented by commissions varying between 0.5% and 11%. This adjustment led to salary reductions as high as 40%, which Sears defended as essential for maintaining market competitiveness.

By 2007, commission percentages were lowered in select departments to a range of 0.5% to 4%, while base wages were standardized across the Home Improvement and Electronics divisions. Additional reductions followed: electronics commissions on standard products were cut to 1% in 2009, and in 2011, commissions on non-standard items decreased by 2%. As of 2017, full commission compensation remained exclusive to the appliances sector; other areas adopted a hybrid model combining base pay with often minimal commissions.

In March 2019, Sears discontinued life insurance coverage for an unspecified segment of its roughly 90,000 retirees—a benefit that many valued between $5,000 and $15,000. This decision came shortly after the distribution of more than $25 million in bonuses to company executives.

In May 2019, Eddie Lampert, former chairman and CEO of Sears Holdings who had acquired the company’s remaining assets, threatened to withhold $43 million in pension payments owed to retired employees and former workers. This sparked apprehension about potential pension losses, particularly since Steven Mnuchin, then serving as Secretary of the Treasury and previously a Sears board member, was involved with the Pension Benefit Guaranty Corporation responsible for overseeing such pensions.

2017

From September 26 through October 12, 2017, malicious software was implanted on systems managed by a third-party service provider supporting sears.com and kmart.com. This breach exposed credit card details belonging to approximately 100,000 customers through a harmful script. The incident was publicly revealed in April 2018.

2021

During June 3–15, 2021, unauthorized intrusions into Transformco’s servers compromised payroll and healthcare information for both current and former employees of Sears and Transformco.

President

Richard W. Sears, 1886–1908
Julius Rosenwald, 1908–1924
Charles M. Kittle, 1924–1928
Robert E. Wood, 1928–1939
Thomas J. Carney, 1939–1942
Arthur S. Barrows, 1942–1946
Fowler B. McConnell, 1946–1958
Charles H. Kellstadt, 1958–1960
Crowdus Baker, 1960–1968
Arthur M. Wood, 1968–1973
A. Dean Swift, 1973–1981
Edward R. Telling, 1981–1982
Archie Boe, 1982–1986
Richard M. Jones, from 1986 onward

Chairman of the Board

Julius Rosenwald, 1924–1932
Lessing Rosenwald, 1932–1939
Robert E. Wood, 1939–1954
Theodore V. Houser, 1954–1958
Fowler B. McConnell, 1958–1960
Charles H. Kellstadt, 1960–1962
Austin T. Cushman, 1962–1967
Gordon M. Metcalf, 1967–1973
Arthur M. Wood, 1973–1978
Edward R. Telling, 1978–1981
Edward A. Brennan, 1981–1982
Edward R. Telling, 1982–1986
Edward A. Brennan, 1986–1995

External links