Sears Canada

Sears Canada Inc.
Company type	Public
Industry	Retail
Founded	September 18, 1952; 74 years ago
Defunct	January 14, 2018
Fate	Liquidation
Headquarters	Toronto, Ontario, Canada
Area served	Canada
Key people	Calvin McDonald (CEO, from 2011)
Products	Department stores, mail order catalogue, online retail
Number of employees	11,240 (at liquidation) (2017)
Parent	Sears Holdings (10% ownership from 2014 onward)

Sears Canada Inc. was a Canadian retail company publicly traded and connected to the American Sears brand. Its operations spanned from September 18, 1952, until January 14, 2018, with its headquarters located in Toronto, Ontario. The company originated as Simpsons-Sears, a collaborative venture between the Canadian Simpsons and the U.S.-based Sears, focusing on a nationwide mail order business alongside co-branded retail outlets modeled after Sears’ American format. Following the acquisition of Simpsons by the Hudson's Bay Company in 1978, the joint venture shares were sold to Sears, which gained full ownership by 1984 and subsequently renamed the entity Sears Canada Inc.. In 1999, Sears Canada purchased the assets and storefronts of the historic Canadian retailer Eaton's. From 2014 onward, Sears Holdings maintained a 10% ownership stake in the company.

At its height, Sears Canada operated 125 comprehensive department stores. By 2016, its network had expanded to include 140 corporate locations—comprising full-line stores, Sears Home outlets, and Outlet stores—along with 71 Hometown stores, more than 900 catalogue and online merchandise collection points, 69 Sears Travel offices, and an extensive repair service network nationwide. The company continued to publish a general merchandise catalogue until late 2016 and maintained an online shopping platform at sears.ca until October 19, 2017.

Following its filing for creditor protection in June 2017, Sears Canada announced plans to close 20 full-line stores, 15 Home stores, 10 Outlet stores, and 14 Hometown locations, leading to roughly 2,900 job losses. These closures were finalized on October 1, 2017. In September of the same year, an additional ten store closures were revealed. On October 10, 2017, Sears Canada applied for court authorization to liquidate all remaining outlets and lay off its remaining workforce of approximately 11,240 employees. The Ontario Superior Court granted approval for liquidation on October 13, 2017.

Clearance sales commenced on October 19, 2017; all remaining stores ceased operations by January 14, 2018. The sale of store fixtures and equipment continued until January 26, 2018.

Simpsons-Sears

The origins of Sears Canada trace back to Simpsons-Sears Limited, a catalogue-based and mid-tier retail business established as an equal partnership between Canada's Robert Simpson Company Limited and the American firm Sears, Roebuck and Co. In 1952, General Robert E. Wood, then Chairman of Sears, proposed this alliance as a strategy to enter the Canadian market. Both parties invested $20 million each and shared governance equally through board representation. The venture’s objective was to expand Simpson’s mail-order operations while introducing retail stores modeled after Sears' U.S. concept across Canada.

An important agreement prevented Simpsons-Sears from opening retail locations within a radius of 25 miles from existing Simpsons stores in Toronto, Montreal, Halifax, Regina, and London; in return, Simpsons refrained from establishing stores beyond those cities. Nevertheless, Simpsons-Sears was permitted to operate mail-order services and credit operations throughout Canada.

The inaugural Simpsons-Sears catalogue was released in early 1953, followed by the first brick-and-mortar store opening in Stratford, Ontario that September. By the following year, Simpsons-Sears inaugurated Canada's first major suburban department store in Burnaby, British Columbia—adopting Sears’ contemporary retail format.

In 1955, the company introduced its slogan “We Service What We Sell,” highlighting its commitment to after-sales support provided by skilled technicians.

The first full-line store under Simpsons-Sears opened in Quebec City’s Fleur de Lys shopping centre in 1963.

On April 5, 1965, Simpsons-Sears became publicly traded on both Toronto and Montreal stock exchanges through Class “A” non-voting shares issuance. That same year marked the beginning of Sears' enduring partnership with Boys and Girls Clubs of Canada.

In a pioneering move in 1968, it became the first Canadian retailer to procure merchandise from Mainland China.

The company relocated its head office to a new facility at 222 Jarvis Street in Toronto in 1971.

In 1972, both Simpsons and Simpsons-Sears mutually agreed to remove their previous restriction limiting store openings within a 25-mile radius of each other’s locations—paving the way for nationwide expansion. The following year saw rebranding efforts where retail outlets adopted the "Sears" nameplate to minimize customer confusion; however, the corporate entity retained the name Simpsons-Sears Limited. That year also marked Sears surpassing $1 billion in sales revenue.

In 1974, Sears launched a store at Hillcrest Mall in Richmond Hill, Ontario—its initial mall-based location coexisting alongside an existing Simpsons store nearby.

Divestiture by Simpsons

In 1978, a proposed merger between Simpsons and Simpsons-Sears required authorization from the Foreign Investment Review Agency, as Sears, Roebuck was set to become the principal shareholder. Prior to receiving this approval, the Hudson's Bay Company intervened by acquiring Simpsons Limited. Subsequently, Simpsons' stake in Simpsons-Sears, which had been taken over by The Bay, was eventually sold back to Sears, Roebuck. To highlight its autonomy, the company was renamed Sears Canada Inc. in 1984.

By 1991, Hudson's Bay integrated its remaining Simpsons stores in Greater Toronto into its The Bay division, thereby retiring the Simpsons brand. Sears Canada then assumed control of eight former Simpsons and Bay locations, establishing a significant presence in Greater Toronto—a market it had not accessed since 1952. These stores featured a revised merchandise mix emphasizing 60% fashion and 40% hard goods, alongside boutique-style shops showcasing brands such as Le Chateau, Sung, and Rouie.

In 1983, Sears introduced "The Store of the Future," an extensive initiative aimed at revamping store design with a focus on product offerings and customer experience. The first updated location debuted in Mississauga in 1985, with renovations completed over a three-year period.

The Sears Catalogue Club loyalty program launched in 1986 and was renamed "Sears Club" in 1987 to encompass all sales platforms. The program ceased point accumulation on June 22, 2017.

Acquisition of Eaton's

In 1999, Sears Canada purchased assets and the trademark of the bankrupt The T. Eaton Company Limited, securing leases for prime downtown sites in Toronto (Eaton Centre), Vancouver, Victoria, Winnipeg, Ottawa, and Calgary. This acquisition enabled Sears Canada to enter key urban markets historically dominated by The Bay and Eaton's. Although Sears considered acquiring Eaton's flagship store in downtown Montreal, it was ultimately acquired by Quebec retailer Les Ailes de la Mode.

Operations during 21st century

Sears reintroduced "Eatons" (using a lowercase "e" logo) in November 2000 as a seven-store upscale mini-chain located in Vancouver, Victoria, Calgary, Winnipeg, Toronto (Eaton Centre and Yorkdale), and Ottawa—sites that were former Eaton flagship stores. At Yorkdale and Winnipeg’s Polo Park, Sears temporarily operated two anchor stores (Eatons and Sears). This venture failed to succeed, leading Sears to revert Eatons stores back to the Sears brand by 2002. Observers noted that Eatons' positioning as an upscale brand with dispersed locations hindered profitability amid a retail environment shifting toward big-box formats and specialty retailers, which pressured traditional department stores.

In 2005, Sears outsourced its Card financial services to JPMorgan Chase for C$3 billion but maintained control over the Sears Club points program. CEO Brent Hollister explained this move enabled Sears to concentrate on retail operations. However, Sears Canada ended its credit card partnership with JPMorgan Chase in November 2015.

In January 2006, parent company Sears Holdings attempted to take Sears Canada private by acquiring outstanding shares but encountered resistance from some board members. An August 2006 decision by the Ontario Securities Commission impeded privatization efforts by disqualifying votes from three major shareholder groups due to special rights granted by Sears Holdings. Consequently, a shareholder vote in November 2006 rejected the $17.97 per share buyout offer. As of March 31, 2005, Sears Holdings held 73.1% of Sears Canada shares, Pershing Square Capital owned 17.3%, with remaining shares publicly traded on the Toronto Stock Exchange.

On September 26, 2007, Sears Canada sold its headquarters at 222 Jarvis Street to the Government of Ontario and moved its corporate offices into surplus space within its flagship store at Toronto Eaton Centre.

Decline

In 2010, same-store sales fell by 4%, an improvement compared to the 6.8% decline experienced in 2009. Following disappointing holiday sales in December 2011, Sears reduced its head office workforce by 70 employees after reporting a quarterly loss nearing $47 million. From 2003 through 2011, the company experienced a cumulative revenue loss of $1.6 billion.

Calvin McDonald, formerly with Loblaw Companies, assumed the roles of president and CEO in June 2011 and launched a three-year turnaround strategy aimed at addressing competitive pressures and economic difficulties. His approach prioritized a return to the retailer’s foundational strengths, concentrating on categories such as appliances, dresses, children’s apparel, and mattresses, while also introducing a more inviting store design. By the third quarter of 2011, losses had decreased from $44.1 million in 2010 to $21.9 million. In 2012, Sears divested three prominent stores located in Calgary, Ottawa, and Vancouver back to Cadillac Fairview for $170 million and sold additional properties in Calgary and the Toronto region. Sears Holdings lowered its ownership stake to 51%, with chairman Edward Lampert retaining a 27% share. In April 2013, Sears Canada eliminated product categories including electronics and window coverings and shifted toy sales exclusively online.

Douglas C. Campbell was appointed chief operating officer in September 2013. Shortly thereafter, the company announced plans to close five key urban stores—including its flagship site at Toronto Eaton Centre—returning these properties to landlords as part of an asset optimization strategy. Campbell departed in October 2014, succeeded by Ronald Boire until June 2015. Brandon Stranzl took over as executive chairman and CEO in July 2015, with Carrie Kirkman serving as president and chief merchant until July 2016.

In late 2013, SHS Services Management, a contracted provider managing home improvement warranties for Sears Canada, entered receivership; Sears committed to fulfilling warranty obligations through SHS services.

On August 24, 2016, Sears Canada unveiled a refreshed corporate logo featuring a black wordmark accompanied by a red maple leaf outline, replacing the previous blue striped logo inspired by U.S. branding to convey boldness and renewed confidence.

During the second quarter of 2016, Sears announced the development of "Sears 2.0," a new retail format trialed at select locations. This concept launched at Promenade and Mapleview Centre in September 2016 with an open-plan design emphasizing adaptability and self-service departments such as footwear. Executive chairman Stranzl described this initiative as incorporating leading retail best practices with a renewed focus on competitive pricing. The format was further rolled out during renovations at Stone Road Mall in Guelph.

In December 2016, Sears Canada disclosed plans to introduce grocery sections—mainly featuring organic and value-oriented products integrated with e-commerce—in three to five remodeled stores throughout 2017.

Bankruptcy and liquidation

On June 13, 2017, Sears Canada announced it had engaged advisors to explore restructuring or sale opportunities amid "material uncertainties" regarding cash flow and "significant doubt" about its ability to continue operating as a going concern. On June 22, the company sought court protection under the Companies' Creditors Arrangement Act and initiated restructuring measures that included closing 59 locations (20 department stores, 15 Sears Home outlets, 14 Sears Hometown stores, and 10 Sears Outlet shops), resulting in approximately 2,900 job cuts. The retailer had been shifting its merchandise focus toward fashion and home décor while reducing emphasis on automotive products, electronics, and tools. It reported improved same-store sales over the prior two quarters.

On July 18, 2017, court authorization was granted for Sears Canada to commence inventory liquidation at closing stores starting July 21; Gordon Brothers and Merchant Retail Solutions were appointed to oversee this process. Marketing efforts for these sales deliberately avoided language such as "bankruptcy" or "going out of business." Franchisees managing Hometown store liquidations criticized the closures since many locations remained profitable and they faced loss of contractually guaranteed compensation.

During restructuring, Sears Canada faced public backlash for awarding $7.6 million in retention bonuses to 43 executives and $1.6 million to senior store staff while not providing severance packages to terminated employees. This sparked social media criticism and calls for boycotts; the company defended these payments as customary measures intended to retain essential personnel during insolvency proceedings.

On August 15, 2017, Sears Canada requested court approval to reallocate $500,000 from retention bonuses into an "Employee Hardship Fund" designed for eligible former workers; however, this fund was not regarded as a full replacement for severance payments.

By October 2, Sears Canada planned to seek an extension of bankruptcy protection while announcing an additional closure of eleven stores. An acquisition attempt led by executive chairman Brandon Stranzl failed to secure a buyer for the company. On October 10, it was announced that no viable purchaser had emerged; consequently, court approval was sought on October 13 to liquidate roughly 130 remaining outlets. The Ontario Superior Court granted this request on October 13; liquidation commenced on October 19 with an expected duration of ten to fourteen weeks.

The complete shutdown resulted in nearly 12,000 job losses—approximately three-quarters being part-time positions—and left the pension plan underfunded by close to $270 million. As a result, annual benefits for about 17,000 pension plan members were anticipated to decrease. A judicial order froze payments to other creditors until pension-related issues were resolved. While Ontario provides financial assistance under its Pension Benefits Act for such circumstances, no other Canadian province offers comparable support.

Comprehensive Department Stores

Simpsons-Sears launched its full-line department stores in 1953, categorizing them based on size, sales volume, and product assortment. The initial classification system reflected that of its American parent company, Sears, Roebuck, and Co.: 'A' Stores represented large-scale full-line outlets, 'B' Stores catered to medium-sized markets, and 'D' Stores served smaller communities with a focus on hard goods, home departments, and catalogue services. The 'D' Store format was discontinued in the early 1960s. During the 1980s, smaller 'S.S.' stores took over similar market roles previously held by the 'D' stores. Subsequent classifications incorporated labels such as 'Select,' 'Core,' and 'Small.' Hometown Dealer Stores offered assortments comparable to the original 'D' Store model.

Clearance Centres and Outlet Locations

The first "Clearance Centre" was established by Simpsons-Sears in 1971 beside its Kenmore Catalogue Service Centre in Toronto, designed to sell out-of-season and discounted catalogue inventory. This concept expanded across Canada, providing customers with discounted in-house and brand-name merchandise. In the 2000s, these centres were rebranded as "Outlet Stores" to represent a wider product range that included channel-specific items. Some full-line stores transitioned to this outlet format starting in 2014. By the autumn of 2016, Sears Canada operated 17 outlet sites; however, by June 2017, it announced plans to close the remaining 10 outlets.

Hometown (Dealer) Stores

Introduced in 1994 with the inaugural location in Pembroke, Ontario, Hometown Dealer Stores focused on smaller markets by combining major merchandise offerings with local Catalogue counters. These stores primarily functioned through partnerships with community-based franchisees to serve regions lacking larger Sears locations or other retail competitors.

Home Specialty Stores

In 1995, Sears Canada debuted "Sears Whole Home," specialty outlets dedicated to home furnishings situated mainly within power centres. The format was renamed "Sears Furniture and Appliances" in 1999 to incorporate major appliances and later rebranded as "Sears Home" in 2003 to highlight a comprehensive home decor shopping experience. The product selection grew to include installed home items such as floor coverings and window treatments.

By 2004, Sears expanded its home-focused retail formats beyond malls with the addition of Sears Appliances and Mattresses stores as well as Sears (Floor) Coverings Stores to broaden its range of home-related specialty shops.

E-Commerce

Sears Canada launched its website, www.sears.ca, in August 1996, allowing customers to purchase products featured in Sears catalogues online.

In 2016, the company initiated Initium, a project aimed at modernizing legacy systems into an integrated and flexible online retail platform. This upgrade provided omni-channel order fulfillment capabilities, streamlined logistics integration, and improved search and checkout experiences. Simultaneously, Sears Canada entered into a decade-long partnership with CGI Group to overhaul technology platforms with goals of cost reduction and operational efficiency enhancement. Following October 19, 2017, the website discontinued online sales and redirected visitors to physical stores undergoing liquidation. The site fully ceased operations after December 13, 2018; although social media links remain available, no activity has occurred since business closure.

For Canadian consumers shopping cross-border, Sears offered the option to purchase from the US website with pickup available at US store locations; however, international shipping was not provided.

Corbeil Appliances

Established in 1949, Corbeil Électrique Inc., known as Corbeil Appliances, became part of Sears Canada in 2005. While maintaining 26 stores across Quebec, the company shut down its four outlets located in Toronto and Ottawa. Amid bankruptcy procedures, Corbeil was acquired by Am-Cam Électroménagers Inc., a Montreal-based parent company of Distinctive Appliances, for an undisclosed amount. This acquisition was finalized in December 2017.

Corporate affairs

Sears Canada's headquarters were situated in Downtown Toronto, within an eight-story building that also contained the flagship Sears store at the Toronto Eaton Centre until 2014. The corporate offices relocated there following the sale of their former premises at 222 Jarvis Street in 2007. Retail operations occupied the lower levels, including a Nordstrom outlet that opened in fall 2016, while the upper floors functioned as the company’s administrative center until Sears Canada's liquidation on January 14, 2018.

After closure, the board of directors continued to operate with four members managing the disposition of remaining real estate holdings.

Sears house brands

Sears Canada upheld several notable private-label brands, each adhering to strict vendor policies banning child labor.

Craftsman represented the line for hardware, outdoor equipment, and work apparel, earning recognition as a leading hand tool brand by Popular Mechanics in 2009. Originating in 1927, Craftsman was introduced to Canadian consumers through Simpsons-Sears in 1953. Sears implemented a tiered pricing model: entry-level tools under the Sears brand, mid-range Craftsman products, and premium Craftsman Professional/Industrial lines. The tool range also included Companion and Evolv' brands before concentrating on do-it-yourself enthusiasts.

Kenmore served as Sears Canada's flagship household appliance brand since its debut in 1953. It featured upscale Elite and professional-grade Kenmore Pro lines and remained a cornerstone of the appliance sector.

Silvertone identified home entertainment devices and musical instruments from 1953 through 1972 in Canada. Particularly noted for entry-level guitars favored by famous musicians, Silvertone guitars have become collectible items.

Coldspot was a brand for refrigerators and cooling appliances active between 1928 and 1976. Initially distributed through Eaton's stores in Canada, it later transitioned to Simpsons-Sears following its establishment.

Jessica was Sears Canada's premier women's apparel label from 1987 until it was rebranded as Jess near the company's end.

Attitude targeted fashion-forward women and evolved into Attitude by Jay Manuel in 2010. A strategic partnership with ALDO Group in 2013 enhanced footwear design and manufacturing for both Attitude and Nevada collections.

Nevada functioned as the primary denim and casual wear brand catering to all age groups starting in 1987. It replaced the earlier "Toughskins" brand and collaborated with Buffalo International Inc. from 2013 onward for apparel design and production.

By 2016, Sears Canada streamlined most private labels under Sears Woman, Sears Man, Sears Kids, and Sears Home as part of its Sears 2.0 initiative.

In 2017, Canadian Tire reached an agreement to acquire rights to the Viking appliance brand; however, Canadian rights were secured by Viking Range LLC in January 2018. Meanwhile, Indigo Books and Music purchased the Calgary Distribution Centre, and SLH Transport was sold to Quebec-based C.A.T. Transport Inc.

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