The History of Sears & Its Transition to a Marketplace Model

From Mail-Order Giant to Digital Marketplace: The Complete History of Sears

by

For over a century, the name Sears was synonymous with American retail. From its revolutionary mail-order catalog that connected rural America to the world, to its sprawling department stores that anchored suburban malls, the story of Sears is a story of innovation, dominance, and dramatic transformation. But in recent decades, headlines have shifted from triumph to trouble, leaving many to ask: what happened to sears?

This comprehensive guide explores the incredible history of Sears, from its humble beginnings to its reinvention as a modern digital marketplace. We will delve into the rise and fall of Sears, examine its groundbreaking business models, and uncover the sears current business status to answer the question, "does sears still exist?" Join us as we unpack the legacy of an American icon.

Table of Contents

The Dawn of an Empire: Who Was Sears and Roebuck?

The sprawling sears company history begins not in a grand department store, but with a simple side hustle. In 1886, a young Minnesota railway station agent named Richard W. Sears came into possession of a shipment of unwanted gold watches. He purchased them himself and sold them to other agents up and down the line for a tidy profit. This success sparked an idea, and he founded the R.W. Sears Watch Company.

Recognizing the need for a skilled watchmaker, Sears placed an ad and hired Alvah Curtis Roebuck in 1887. While their partnership was not immediate, this collaboration laid the foundation for one of America’s greatest retail empires. The answer to "who founded sears?" points directly to these two pioneers. In 1893, they officially incorporated their venture, and the iconic Sears, Roebuck and Company was born.

The Catalogue That Built America

To truly understand the history of Sears and Roebuck, one must understand the power of its most famous innovation: the sears catalogue. In an era before paved roads, shopping malls, and the internet, the catalogue was a lifeline for millions of Americans, particularly those in rural communities. So, what does sears create that revolutionizes america? It created a store in every home.

The catalogue brought the world to the consumer’s doorstep. It offered everything from clothing and tools to furniture and farming equipment at fixed, transparent prices. This was what was sears revolutionary business model: direct-to-consumer sales on a massive scale, backed by a "satisfaction guaranteed or your money back" promise that built unwavering trust. The annual holiday edition, affectionately known as the sears wishbook, became a cultural touchstone for generations of families. The sears brand became a symbol of quality, value, and accessibility for the American consumer.

The Golden Age: From Mail-Order to Main Street

While the catalogue was the foundation, the sears company did not rest on its laurels. In 1925, Sears opened its first physical retail store, a strategic move that coincided with America’s shift from rural to suburban life. These stores became anchors in communities and shopping malls across the nation, cementing Sears’s dominance.

This era saw the rise of legendary house brands like Craftsman tools, Kenmore appliances, and DieHard batteries. The company’s innovation even extended to housing. Between 1908 and 1940, Sears sold over 70,000 kit homes through its catalogue, known today as sears houses. These mail-order homes offered quality construction at an affordable price, further weaving the company into the fabric of American life. For decades, the sears market share was immense, making it the largest retailer in the United States. Its success was reflected in the sears stock, which was a blue-chip investment for many years.

The Slow Decline: Unpacking Why Sears Failed

The question of how sears failed is complex, with no single cause. The decline was a gradual process spanning several decades. As the retail landscape evolved, the sears corporation struggled to adapt.

  • Rise of Competition: Big-box retailers like Walmart and Target began to dominate on price, while specialty stores like The Home Depot chipped away at Sears’s market for hardware and appliances. The company found itself stuck in the middle, no longer the cheapest option and no longer seen as the highest quality.
  • Failure to Innovate: While Sears pioneered direct-to-consumer sales, it was slow to embrace the internet and e-commerce. As Amazon rose to prominence, Sears’s catalogue model became antiquated, and its online presence failed to capture a significant audience.
  • Loss of Identity: A series of mergers and acquisitions, most notably the 2005 merger with Kmart to form the Sears Holding Company, diluted the brand’s focus. The company began selling off valuable assets and brands, and critics argued that leadership under CEO Eddie Lampert prioritized financial engineering over retail fundamentals, which many analysts believe accelerated the decline.

The once-mighty retailer saw its sears market cap and sears stock value plummet, a stark contrast to its glory days. The once-robust sears stock history turned into a cautionary tale.

Bankruptcy, Restructuring, and the Modern Sears

The long decline culminated in October 2018, when the Sears Holding Company filed for Chapter 11 bankruptcy. This event is often cited when people ask when sears went out of business, although it was technically a restructuring, not a complete liquidation.

In 2019, a new entity called Transformco (an affiliate of Eddie Lampert’s hedge fund) successfully bid to acquire the core assets of Sears, including several hundred retail stores. This is the answer to "who bought sears?" and "who owns sears now?". The old company’s stock, trading under the ticker shldq stock, became largely worthless as the new, private company, Transformco Sears, took over operations.

Since the acquisition, the number of physical stores has continued to shrink dramatically. While a handful remain, the question "are any sears store still open?" has become common, with the answer changing frequently as more locations close.

The Digital Pivot: What Is Sears Marketplace?

In its current form, the sears business model has shifted dramatically from physical retail to e-commerce. The company is now heavily focused on the sears.com direct to consumer business model. A central component of this strategy is the Sears Marketplace.

So, what is sears marketplace? It is an sears online marketplace that allows third-party merchants to sell on sears marketplace. Much like Amazon or Walmart Marketplace, this platform allows any approved sears seller to list their products on Sears.com, vastly expanding the site’s inventory without Sears having to own the products itself. This sears model leverages the brand’s remaining name recognition to create a new revenue stream focused on e-commerce. The sears market of today is a digital ecosystem, a far cry from the mail-order giant it once was.

Frequently Asked Questions

What happened to Sears Roebuck?
Sears, Roebuck and Company, after merging with Kmart to become the Sears Holding Company, faced decades of declining sales and mounting debt due to intense competition and a failure to adapt to modern retail. This ultimately led to its bankruptcy in 2018 and the subsequent sale of its remaining assets to Transformco.

Is Sears still in business?
Yes, is sears still in business is a common question. A much smaller version of the company exists today, owned by Transformco. It operates a handful of retail stores and focuses primarily on its online business, including the Sears Marketplace.

Will Sears ever come back?
While questions like "is sears coming back?" and "will sears ever come back?" are popular, a return to its former glory as a dominant, nationwide physical retailer is considered highly unlikely by most industry analysts. The company’s current focus is on a smaller, digitally-focused business model.

What are Sears?
Historically, what are sears could be answered as America’s largest department store and mail-order retailer. Today, Sears is a smaller retail company primarily focused on e-commerce through its website and the Sears Marketplace, with a very limited number of physical department stores.

How can I see my sears purchase history?
Customers can typically view their sears purchase history by logging into their account on the Sears.com website. The account dashboard usually contains a section for past orders and receipts.

What was the Sears historical stock price?
The sears historical stock price varied greatly over its long history. It was a strong blue-chip stock for many decades but experienced a severe and prolonged decline in the 2000s and 2010s, eventually falling to under a dollar per share before the bankruptcy of its parent company.