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Sears Puerto Rico

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Sears de Puerto Rico
Company typeSubsidiary
IndustryRetail
Founded15 September 1937
Defunct31 August 2025
FateBankruptcy and liquidation
Headquarters
San Juan
,
Puerto Rico
Number of locations
0 (By August 2025)
Area served
Puerto Rico, United States Virgin Islands
RevenueTemplate:US$350,000,000+ (2006)
Total assetsTemplate:US$19,982,740.00 (2019)
Total equityTemplate:US$25,064,719.00 (2019)
Number of employees
3,000+ (2006)
ParentSears Roebuck and Company
Websitesearspr.com

Sears Roebuck de Puerto Rico, Inc., commonly known as Sears de Puerto Rico, functioned as a branch of Sears operating within Puerto Rico and the United States Virgin Islands. Established in 1961 as a subsidiary of the primary company Sears Roebuck and Company, this division specialized in retailing a broad assortment of apparel including suits, coats, dresses, alongside home furnishings.[1] The presence of Sears Roebuck and Company in Puerto Rico dates back to 1937 with the launch of a catalogue store. During its prime, the chain operated more than ten stores island-wide. As of July 2025, the sole remaining Sears outlet at the Plaza Las Américas mall was scheduled to cease operations in August.[2]

Origins

On August 3, 1937, it was announced that A. W. McClosay and R. E. Paonessa had arrived on the island accompanied by their spouses. These individuals held senior executive roles within Sears Roebuck and Company in the United States and were tasked with establishing an office and showroom to present a wide range of products sold through the company's catalogue business at that time. This initiative aimed to enhance connections with customers residing on the island.[3]

The inaugural Sears Roebuck and Company catalogue store in Puerto Rico opened its doors on September 15, 1937, in San Juan, the island's capital.[4] By the 1940s, additional catalogue stores had been launched in Ponce, Mayagüez, and Fajardo.[5]

On January 18, 1951, a new catalogue store was inaugurated in Caguas. The event attracted approximately two thousand attendees to the location on Muñoz Rivera Street where various household product demonstrations took place. Representatives from the company's Philadelphia headquarters expressed satisfaction with public interest during these demonstrations, noting numerous orders placed by attendees.[6]

It was reported on May 30, 1951, that Río Piedras would receive a new catalogue store opening in June to commemorate the company's sixty-fifth anniversary of operations. According to Antonio Franco, who served as Sears' local administrator at that time, this establishment would be considered the most sophisticated among all Sears catalogue stores on the island.[7]

On August 7, 1954, Sears announced it would open a new branch in Vega Baja's Puerto Nuevo area.[8] By the late 1950s, additional locations had been established in Santurce and Caparra Terrace within San Juan.[9]

Incorporation, growth, and achievements

File:Sears Puerto Rico.jpg
Logo utilized from 1966 through 1984

On January 31, 1961, Sears Roebuck and Company declared the establishment of a new wholly owned subsidiary in Latin America, named Sears Roebuck de Puerto Rico, Inc.,[10] which initially managed six stores—five located in Puerto Rico and one in St. Thomas, Virgin Islands.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name

The first comprehensive Sears department store on the island officially opened on November 1, 1962, in San Juan, Hato Rey. The facility attracted full occupancy of its 2,500 parking spaces upon opening.Cite error: The opening <ref> tag is malformed or has a bad name This flagship location featured 77,000 square feet dedicated to retail space and stood as the largest among the eight retail outlets operated by Sears Roebuck de Puerto Rico, Inc. at that time.Cite error: The opening <ref> tag is malformed or has a bad name Throughout the 1960s, the company pursued expansion by inaugurating stores in Ponce (1964), Caguas (1966), Arecibo (1967),Cite error: The opening <ref> tag is malformed or has a bad name and Bayamón (1968) within the Santa Rosa Plaza shopping complex.[11]

On October 4, 1972, Sears launched a new store at the Mayagüez Mall in Mayagüez. Reports highlighted that this location was among the mall's initial tenants and achieved record-breaking sales figures.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name

By June 10, 1975, Sears management announced intentions to open two additional stores in Puerto Rico by 1978. Robert B. Gibson, then president of Sears Roebuck de Puerto Rico, Inc., revealed ongoing negotiations with Plaza Las Americas, Inc., owners of the Plaza Las Américas mall in Hato Rey. The planned store would mirror the size of existing locations in Hato Rey and Bayamón and be situated on an expansion area toward the mall’s northern side. This new outlet was projected to encompass approximately 300,000 square feet combining sales, office, and warehouse areas, with about 135,000 square feet dedicated to retail space. The second prospective store was to be located at the forthcoming Plaza Carolina shopping center near Villa Fontana Urbanization along 65 Infantería Avenue in Carolina. This location would be smaller relative to other island stores but positioned within what was expected to become Puerto Rico’s largest shopping mall. Gibson noted that investment figures for these developments were not yet finalized but confirmed advanced discussions regarding the Plaza Las Américas site.Cite error: The opening <ref> tag is malformed or has a bad name

On February 11, 1978, it was announced that San Juan’s Mayor Dr. Hernán Padilla would officiate the ribbon-cutting ceremony for the new Sears store at Plaza Las Américas on Monday morning, February 12 at 9:30 am. This new store represented a significant departure from the original Hato Rey location operational since 1962. Situated at the mall's northern end with a total area near 240,000 square feet—making it roughly 80% larger than its predecessor—the facility featured architectural design by Eduardo Molinari y Asociados. The expansive parking facilities included a main lot accommodating 6,000 vehicles plus an additional structure with space for 800 cars connected directly to the store’s second floor for customer convenience. Access to the store was available both from inside the mall and via parking areas. The store housed over fifty merchandising departments alongside amenities such as a restaurant; a Customer Service Center offering traveler's checks and bill payment services; gift wrapping; catalog ordering; key cutting; watch repair; photography studio; optical services; beauty salon; and pharmacy. A notable highlight was its automotive center spanning approximately 40,000 square feet, capable of servicing up to thirty vehicles simultaneously.Cite error: The opening <ref> tag is malformed or has a bad name Later that year on October 9, 1978, Sears officially opened its store within the Plaza Carolina shopping mall.Cite error: The opening <ref> tag is malformed or has a bad name

On December 28, 1978, R. B. Gibson—then president of Sears Roebuck de Puerto Rico—announced commencement of the permanent closure process for the Hato Rey location. Gibson explained that all merchandise would be sold off rather than transferred to the new Plaza Las Américas store. The liquidation encompassed inventory as well as shelving units, office furnishings, and decorative elements. He acknowledged that closing Hato Rey was a challenging decision given its historical success but emphasized that growing sales necessitated moving to Plaza Las Américas where approximately fifty percent more retail space would be available to better serve customers.[11]

On November 27, 1981, Sears inaugurated another new outlet at the Arecibo Mall located in Arecibo city.Cite error: The opening <ref> tag is malformed or has a bad name

Growth and Achievements: "The Store of the Future"

On September 15, 1985, it was announced that the Sears location at Plaza Las Américas had completed an extensive renovation and adopted a new merchandising layout. Paul Brierre, the store manager at the time, indicated that following six months of refurbishment, this Sears store became part of an expanding group of Sears outlets featuring the innovative "Store of the Future" design. According to Mr. Brierre, the 1985 initiative marked the second year in a five-year plan to remodel and enlarge 600 existing stores while building 62 new ones, involving a total capital outlay of $1.7 billion. He further explained that Sears aimed to establish a pioneering retail environment encouraging shoppers to explore and purchase a wider variety of products, including enhanced selections in apparel, sporting goods, and casual wear. "The outcomes so far have been very positive," he remarked. "Customer feedback has been outstanding."

By June 17, 1990, Sears Roebuck de Puerto Rico revealed plans to launch Sears Brand Central, a fresh retail concept with intentions to open multiple outlets across the island.

On November 9, 1992, a new Sears store commenced operations at the Plaza del Caribe mall in Ponce. That same year also saw the inauguration of another Sears location at Plaza del Norte in Hatillo.

File:Sears PDN.jpg
Entrance to the Sears store at Plaza del Norte in Hatillo, Puerto Rico, as seen in 2011

On October 25, 1995, it was reported that Pier 1 Imports had entered into an agreement with Sears Roebuck de Puerto Rico to establish six Pier 1 shops within existing Sears department stores on the island. These Pier 1 outlets were planned to occupy between 2,000 and 3,000 square feet of retail space each. The initial pair was scheduled to open in November of that year inside Sears at Plaza las Américas in San Juan and Sears Homelife within Galería Paseos mall in Cupey. At that time, Sears operated ten department stores throughout Puerto Rico. The collaboration between Sears and Pier 1 had introduced the store-within-a-store format earlier in 1993 within Sears Mexico locations.

Throughout the mid-to-late 1990s, Sears completed an expansion on the island with investments exceeding $21 million. This growth significantly increased its local presence and included reopening a Sears Brand Central at Plaza Las Américas in the former two-story Velasco building after Velasco's closure in 1995. Between 1993 and 1999, Sears expanded from four to ten stores on Puerto Rico and more than doubled its retail space.

On January 24, 1999, reports highlighted that the Sears outlet at Plaza las Américas led global sales performance among all Sears stores worldwide.

By August 7, 2003, Gary Salvatore, president of local operations, announced that both customer traffic and sales at Sears had increased by over 10% compared to the previous year. He noted that Puerto Rico's district—with its ten stores—achieved the highest overall performance among all sixty-three districts nationwide during 2002. Due to this success, Salvatore did not rule out additional store openings locally but emphasized that such decisions depended on available real estate opportunities. He also pointed out that Puerto Rico consistently ranked among the top-performing districts for several years and boasted one of the highest credit penetration rates within the chain. Additionally, customer satisfaction levels were reported as the highest across all districts. Salvatore attributed this success to Sears’ adaptability to local market preferences and consumer tastes—a crucial factor for thriving in a competitive environment like Puerto Rico’s. In 2001 alone, local operations generated approximately $400 million in gross sales.

On May 13, 2004, it was disclosed that Sears Roebuck de Puerto Rico planned a $1.5 million investment to convert three former Western Auto locations—in San Juan, Ponce, and Mayagüez—into Sears Automotive Centers set to reopen by mid-June of that year. Historically, Advance Auto Parts had acquired Western Auto from Sears in 1988 for $1.8 million cash plus a forty percent equity stake. By 1995, five out of six automotive centers previously operated by Sears were rebranded as Western Auto stores on the island. Gary Salvatore explained that after nearly a decade-long absence from this market segment locally, these new automotive centers would offer customers quality tires, leading battery brands like DieHard, and related services under the trusted Sears name. The first reopening was planned for Plaza Las Américas—a freestanding facility covering 26,000 square feet with an expanded retail area of 5,000 square feet and twenty-six service bays. The Ponce Plaza Caribe Mall location would feature a total of 14,000 square feet with a retail section of about 1,700 square feet and eleven service bays; meanwhile, Mayagüez Mall’s center would span approximately 16,000 square feet including a retail area of around 2,500 square feet alongside twelve service bays. Collectively these three centers were expected to employ roughly 130 staff members. These openings coincided with Salvatore’s upcoming promotion to vice president overseeing the southeast region from headquarters in Hoffman Estates, Illinois—a territory spanning Richmond to Miami.

By June 5, 2005, it was announced that following the $11 billion merger between Sears and Kmart, Puerto Rico would see introduction of Sears Essentials stores starting the next year. Ted Wells—then president of Sears Holding Co.’s Puerto Rico division—stated that eight to ten Kmart sites had been identified as candidates for conversion into this new format anticipated for spring 2006 implementation. Both Kmart and Sears outlets were expected to continue operating their existing formats for the time being since both brands enjoyed strong market positions locally; at that point Sears maintained ten stores generating $400 million in gross sales for 2003 while Kmart operated twenty-one locations with estimated sales reaching $350 million annually. Combined employment across both retailers exceeded four thousand workers according to data published by Caribbean Business.

As of September 27, 2007, Sears de Puerto Rico managed ten company-owned stores including three dealer-operated locations in Aguadilla, Barranquitas and San Sebastián; one outlet store situated in Cupey; plus three Automotive Centers evolved from former Western Auto outlets located at Plaza Las Américas, Plaza del Caribe in Ponce and Mayagüez Mall. These dealer stores functioned similarly to licensed entities under the Sears brand name with merchandise assortments consistent with company standards albeit subject to physical space constraints. Collectively this network generated over $350 million annually while employing more than three thousand individuals—ranking consistently among the chain’s top three markets nationwide alongside Hawaii.

On February 5, 2009 it was reported that plans were underway for further expansion through establishment of Sears Hometown Stores in Cayey, Yauco and Humacao. Each franchise-style location would integrate seamlessly into Puerto Rico’s broader network while requiring initial investments estimated between $50,000 and $70,000 per site; each new store was projected to create approximately one hundred jobs locally. A regional development manager had been appointed specifically to promote these smaller-format stores which ranged from five thousand to eight thousand square feet—significantly smaller than traditional anchor tenants—and offered promising entrepreneurial opportunities due to lower startup costs. At this juncture—celebrating seventy years on the island—Sears Holdings operated fourteen full-sized stores alongside twenty-three Kmart locations throughout Puerto Rico.

Continuing its expansion trajectory on March 12, 2009 it was announced that a new dealer-operated Sears Hometown Store opened its doors in Toa Baja’s Candelaria neighborhood along Route 2; this outlet was part of a broader strategy encompassing multiple new openings across Puerto Rico designed to strengthen local market presence further.

Decline, downsizing, and current status

File:Damaged Sears sign, Puerto Rico.jpg
Damaged Sears sign in Puerto Rico, 2018, illustrating the decline

In July 2015, Sears Holdings transferred ownership of 235 properties, including all Sears and Kmart stores in Puerto Rico, into a newly formed REIT named Seritage Growth Properties.

By March 4, 2016, it was announced that Sears would close one of its island stores in May of that year. The affected location was the Sears at Galería Paseos in San Juan, a key anchor tenant of the mall. Dave Rodney, president of Sears and Kmart operations for Puerto Rico and the Virgin Islands, explained that the decision followed the expiration of the lease agreement and the company's choice not to renew it. While specific reasons were not disclosed, Rodney noted that factors such as business performance, landlord requests, and economic conditions were considered. The store officially shut its doors on May 31, with inventory clearance sales commencing as early as March 11. This store employed approximately 35 individuals.

On May 25, 2018, reports indicated that Sears planned to open a temporary outlet on the Santa Rosa Mall's first floor to serve Bayamón and nearby areas during reconstruction of its original store. This provisional location spanned 12,000 square feet and was expected to create about 20 jobs. The original store’s reopening was targeted for early 2019.

Following the bankruptcy filing in October 2018 by Sears Holdings, on November 24, 2018, a list of stores available for sale was released, encompassing all Puerto Rican locations. Economic analysts highlighted that inclusion on this list did not guarantee continued operation; closure remained a possibility. At that time, approximately 27 Sears and Kmart stores operated across Puerto Rico.

By April 23, 2019, concerns arose regarding the potential permanent closure of the Santa Rosa Mall Sears store in Bayamón. The location had remained shuttered since Hurricane Maria struck in 2017. Although $3 million had been invested in cleanup and roof repairs prior to halting work due to the parent company’s bankruptcy filing, the store was not among those saved by Edward Lampert’s intervention. Consequently, its reopening appeared uncertain.

On August 30, 2019, Transformco announced plans to close several Kmart and Sears outlets on the island, including the Sears Auto Center at Santa Rosa Mall. Liquidation sales were scheduled to begin mid-September with final closures expected by mid-December.

Further closures were confirmed on November 6, 2019, when Transformco declared eight Sears and Kmart locations across Puerto Rico would cease operations. Among these were Sears stores in Fajardo, Plaza del Caribe in Ponce, and Céntrico shopping mall in Guayama. Liquidation sales were set to start that November and continue through February.

By December 15, 2020, announcements confirmed two additional Sears stores would close: those located at Las Catalinas Mall in Caguas and Plaza Carolina Mall in Carolina. Both were slated to shut down by February 2021.

File:Sears Las Catalinas Mall 01.jpg
Entrance to Sears at Las Catalinas Mall in Caguas during liquidation in 2021

On February 3, 2021, reports revealed four more Sears stores on the island would be closing soon; this included locations at Plaza del Norte in Hatillo and Mayagüez Mall.

Two of the last remaining Sears stores in Puerto Rico—Mayagüez Mall and Plaza del Norte—officially closed their doors permanently on April 20, 2021. The Mayagüez Mall store ceased operations early afternoon before mall closing hours. At Plaza del Norte in Hatillo, customers arriving after 4:00 p.m. found the store empty and locked.

Following a Chapter 11 bankruptcy filing a month earlier, on January 5, 2023 it was reported that Sears Hometown would close all its remaining 115 outlets nationwide. Liquidation sales commenced at Puerto Rican locations included among these closures.

By July 27, 2023, efforts emerged for Sears to regain favor with consumers on the island. The two remaining stores within Plaza Las Américas planned to introduce new brands and products aimed at revitalizing customer interest. Ramón Márquez, TransformCo’s Head of Operations and Marketing—TransformCo having acquired Sears and Kmart assets in 2019—explained that strategic partnerships with prominent local brands were part of this transformation strategy to enhance customer engagement and expand offerings. The Sears Brand Central at Plaza Las Américas was set to feature an extensive range of premium appliances alongside well-known brands familiar to Puerto Rican shoppers. Additionally, an alliance with The Shack—a retailer specializing in beach products—would bring their merchandise into Brand Central. When questioned about relocating the furniture department reopened in 2022 into Brand Central or maintaining both spaces independently, Márquez confirmed furniture sales would remain on the main store’s third floor while both stores would operate concurrently with broader merchandise selections. Plans also included opening additional locations both locally and across the United States; TransformCo retained ownership of six properties on the island potentially available for future expansion—including the former Mayagüez Mall Sears site. A marketing campaign titled "Rediscover Sears" was scheduled to debut at Plaza las Américas’ Food Fest event that August.

On October 4, 2024 it was announced that the two-level Sears Brand Central & Home Improvement outlet occupying approximately 50,000 square feet within Plaza las Américas had closed following liquidation sales beginning October 1. Remaining inventory was transferred to the main Sears store at the mall.

Finally, on July 9, 2025 it was revealed that Puerto Rico’s last operating Sears store would close by August of that year. Edwin Tavárez—general manager of Plaza Las Américas mall—stated that Sears management had initiated discussions regarding transferring their department store space but preferred to communicate closure details directly out of respect for their longstanding tenant relationship exceeding four decades. Tavárez expressed regret over this development citing its impact on customers and employees while acknowledging this location as one of the chain’s final remaining outlets. He extended gratitude toward Sears for its patronage throughout many years.

Locations

Throughout its history, Sears Roebuck de Puerto Rico, Inc. operated a variety of retail formats across the island, including catalogue outlets, full-line department stores, smaller dealer shops, and additional types of locations. Below is an overview of these establishments:

Catalogue outlets

  • Viejo San Juan, Calle Luna at the corner of San Justo – (1937–unknown)
  • Fajardo – (dates unspecified)
  • Ponce, corner of Sol Street – (dates unspecified)
  • Mayagüez, Méndez Vigo at Luna intersection – (dates unspecified)
  • Caguas, Muñoz Rivera Street – (1951–unknown)
  • Río Piedras, Calle Georgetti – (1951–unknown)
  • Vega Baja, Puerto Nuevo, located on Ave. Central and Ave. San Fernando – (1954–unknown)
  • Santurce, Avenue Ponce de León – (dates unspecified)
  • Caparra Terrace, Bioque KA-2 – (dates unspecified)

Full-line department stores

Brand Central/Homelife locations

Sears Hometown

Other dealer formats

  • Arecibo, located in the Arecibo Mall – (1981–unknown)
  • Vega Alta, at Centro Gran Caribe – (dates unspecified)
  • Guaynabo operating Sears Parts & Service – (dates unspecified)
  • Cupey, Sears Outlet store – (dates unknown to 2019)

See also

References

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