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The rise and fall of Sears, once the largest and most powerful retailer in the world
The rise and fall of Sears, once the largest and most powerful retailer in the world
Jan 25, 2020, 00:19 IST
Richard W. Sears founded the R. W. Sears Watch Company in 1886 in Minneapolis, Minnesota.
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In 1895, Richard W. Sears began planning and writing the soon-to-be-famous Sears catalogs.
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The popular catalogs offered discounts on many items.
Three years after Sears held its IPO — becoming the first major US retailer to do so — clothing mogul Julius Rosenwald took over as president.
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But at the end of World War I, farmers were hit with a severe depression, and Sears fell into "dire" financial shape.
In 1925, the first Sears retail store opened in Chicago under the direction of business executive General Robert E. Wood.
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As the automobile became increasingly popular, Wood reasoned that customers could travel from near and far to visit Sears' department stores.
In 1945, Sears made $1 billion in sales — the equivalent of $13 billion today.
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Sears stores were extremely popular, and the company's catalogs and "Wish Books" continued to bring in sales.
Consumers loved Sears' signature low prices, and soon Sears' main market shifted from urban to suburban consumers.
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In 1951, the company released its newest mail-order automobile, the "Allstate," named after the Sears-owned insurance company.
Sears reached new heights in 1969 by breaking ground on the Sears Tower in Chicago.
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From the end of World War II into the 1970s, Sears sales were at an all-time high.
As malls grew in popularity throughout the 1980s, Sears became an anchor store in many plazas.
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In the early 1980s, Sears employees were informed they would no longer receive commissions from sales.
In 1986, Sears expanded into financial services with the launch of the Discover Card through Dean Witter Financial Services Group, a subsidiary of Sears.
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In 1990, Sears lost its spot to Walmart as America's biggest retailer.
In the early 2000s, Kmart acquired Sears to form a new major company, Sears Holdings Corporation.
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In 2007, Sears' stock hit an all-time high at $195.18 per share.
In 2015, Sears' revenue fell from $36.2 billion two years prior to $25.1 billion.
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Many stores were left empty after employees were cut and the company's Shop Your Way rewards program began to flounder.
As sales fell even further, Sears had no choice but to close many of its locations.
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In October 2018, the company officially filed for Chapter 11 bankruptcy.
Sears proceeded to take legal action against Lampert.
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Store closures and corporate layoffs have continued for the once-great retailer.