The final Sears in the New York area, located in Jersey City, is closing its doors, marking the end of the 138-year-old department store's legacy. (Sears Jersey City/ Facebook)
The final Sears store in the New York area is set to close its doors, marking the end of an era for the 138-year-old department store chain. Once a global retail giant with around 4,000 locations worldwide in 2011, Sears has experienced a significant decline over the years. By 2014, the number of Sears locations had more than halved, and the Illinois-based company now operates merely a dozen stores across the United States, along with one in Puerto Rico.
The last remaining Sears in New Jersey, located in Jersey City's Newport Centre Mall, is preparing to shut down. Recent displays at the store feature "Blowout Event" posters and signs offering discounts of up to 70%, signaling the closure of the establishment. The specific closing date remains unclear, as representatives from Transformco, the company that acquired 425 Sears and Kmart stores in 2019, did not respond to inquiries.
After the closure of the Jersey City location, the nearest Sears for New York and New Jersey residents will be in Braintree, Massachusetts, over 225 miles away. The vacated space at Newport Centre Mall is reportedly making way for new tenants, including the popular arcade and sports bar Dave & Buster's and the affordable clothing retailer Primark.
Sears has been grappling with financial challenges since filing for bankruptcy in October 2018. Despite emerging from Chapter 11 proceedings in 2022 and implementing a reorganization plan, the company has been forced to undergo a liquidation process for its remaining assets. The heyday of Sears, once proudly advertised as "Where America Shops," featured merchandise lines from notable figures like supermodel Cheryl Tiegs and "Charlie's Angels" star Jaclyn Smith.
At its peak, Sears, formally known as Sears, Roebuck & Co., held the title of the world's largest retailer, boasting nearly 3,500 stores, including both Sears and Kmart locations. The company featured a portfolio of well-known brands and operating businesses such as Kenmore, DieHard, Craftsman, Sears Home Services, Sears Auto Centers, and Innovel.
The decline of Sears contrasts sharply with the success of retail rival Walmart, which currently operates just over 3,000 stores. When Sears was acquired by Edward Lampert, former chair of Kmart Holding, in 2005 for $11 billion, the newly formed entity, Transformco, had annual revenues of $55 billion. This was a fifth of Walmart's fiscal 2004 total of $256 billion. Since then, Walmart has continued to thrive, ending 2023 with total revenues reaching a staggering $611 billion.
While Walmart's success has been sustained, Sears' story serves as a cautionary tale of the challenges faced by traditional brick-and-mortar retailers in the evolving landscape of e-commerce dominated by giants like Amazon. In 2005, Amazon reported annual revenue of $2.54 billion, and it has since become the world's largest online retailer, generating $554 billion in revenue in 2023, marking a more than 10% year-over-year increase. Transformco, now a privately-held company, does not disclose its financial results.
