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Something Is Missing From Sears’ Turnaround Plan

There has perhaps been no bigger disappointment in the world of retail than Sears Holdings Corporation (SHLD). It’s been quite a fall from grace for Sears, which was at one point the biggest U.S. retailer by revenue. Once known as an American icon with its namesake catalogs that could have been found in nearly every home, Sears is now a shell of itself. Its Sears and Kmart stores are worn-down, and sales are falling off a cliff.

Sears lost $159 million just last quarter. Sales collapsed 23% in the fourth quarter, which included the holiday season, normally a critical quarter for retailers. Going forward, Sears’ biggest plan is to raise cash. It spun off Lands’ End (LE) last year, and is converting its real estate properties into REITs. This conversion should raise about $2 billion, but the core problem hasn’t been fixed: People simply don’t go to Sears or Kmart anymore.