Sears, Roebuck and Co.
Sears was once America's largest retailer, dominating the retail landscape for over a century through mail-order catalogs and department stores. The company filed for bankruptcy in 2018 after years of declining sales, store closures, and inability to compete with e-commerce and big-box retailers.
JCPenney (J. C. Penney Company, Inc.)
JCPenney, once America's largest department store chain, filed for bankruptcy in 2020 after decades of declining sales and failed turnaround attempts. The company emerged from bankruptcy as a much smaller retailer with about 650 stores, down from over 1,100 at its peak.
📊Key Statistics
| Metric | Sears, Roebuck and Co. | JCPenney (J. C. Penney Company, Inc.) |
|---|---|---|
| Peak store count | 3,500+ stores | Over 1,100 stores |
| Stores remaining (2023) | Under 30 stores | — |
| Bankruptcy filing date | October 15, 2018 | May 15, 2020 |
| Peak revenue year | $53 billion (2006) | — |
| Employees at bankruptcy | 68,000 | — |
| Current store count | — | ~650 stores |
| Peak annual revenue | — | $19.9 billion (2007) |
| Debt at bankruptcy | — | $4+ billion |
| Founded | — | 1902 |
⚡Quick Answers
Sears, Roebuck and Co.
Sears filed for Chapter 11 bankruptcy in October 2018 and was later acquired by Transform Holdco LLC, controlled by former CEO Eddie Lampert. The company went from over 3,500 stores at its peak to fewer than 30 locations by 2023. Poor management decisions, failure to adapt to e-commerce, and competition from Amazon and Walmart led to its dramatic collapse from America's retail giant to a shadow of its former self.
JCPenney (J. C. Penney Company, Inc.)
JCPenney filed for Chapter 11 bankruptcy in May 2020 after years of financial struggles, store closures, and declining sales that were accelerated by the COVID-19 pandemic. The company emerged from bankruptcy in December 2020 under new ownership by Simon Property Group and Brookfield Asset Management, but as a significantly smaller retailer. Today, JCPenney operates approximately 650 stores compared to over 1,100 at its height, focusing on its core middle-market customer base while continuing to face challenges in the competitive retail landscape.
📅Combined Timeline
All 29 events from 2 stories, chronologically ordered
Sears Founded
Richard Warren Sears and Alvah Curtis Roebuck establish Sears, Roebuck and Co. The company begins as a mail-order catalog business selling watches and jewelry.
JCPenney Founded
James Cash Penney opens his first store in Kemmerer, Wyoming, called 'The Golden Rule.' The store focused on providing quality merchandise at fair prices with honest service.
First Retail Store Opens
Sears opens its first retail store in Chicago, beginning its transition from catalog-only to brick-and-mortar retail. This marked the beginning of Sears' dominance in American retail.
Peak Store Count Era Begins
JCPenney becomes the largest department store chain in America. The company would eventually operate over 2,000 locations nationwide at its absolute peak.
Sears Tower Opens
Sears completes construction of the Sears Tower (now Willis Tower) in Chicago, symbolizing the company's position as America's largest retailer and demonstrating its financial power.
Walmart Surpasses Sears
Walmart overtakes Sears as America's largest retailer. This marked the beginning of Sears' long decline as discount retailers and big-box stores gained market share.
Competition Intensifies
Walmart, Target, and other discount retailers begin taking market share from traditional department stores. JCPenney starts feeling pressure on its core middle-market customers.
E-commerce Challenge Emerges
Online shopping begins to impact brick-and-mortar retail. JCPenney launches jcp.com but struggles to compete effectively with pure-play online retailers.
Attempted Recovery
Under Ullman and later Marvin Ellison, JCPenney tries to win back customers by restoring sales and coupons. However, many customers had already shifted to competitors permanently.
Kmart Acquires Sears
Kmart, led by Eddie Lampert, acquires Sears for $11 billion, creating Sears Holdings Corporation. The merger was supposed to create synergies but instead accelerated both companies' decline.
Store Closures Begin
Sears begins closing underperforming stores at an accelerated pace. The company closes over 100 stores this year as sales continue to decline and online competition intensifies.
Ron Johnson Becomes CEO
Former Apple retail executive Ron Johnson is hired as CEO with a mandate to transform JCPenney. His appointment initially boosts investor confidence and stock price.
Pricing Strategy Overhaul
Johnson eliminates JCPenney's traditional sales, coupons, and promotional pricing in favor of 'everyday low prices.' The change confuses and alienates longtime customers.
Lampert Becomes CEO
Eddie Lampert takes over as CEO of Sears Holdings, implementing aggressive cost-cutting measures and asset sales while reducing investment in stores and technology.
Ron Johnson Fired
After sales plummet 25% in 2012, Johnson is fired after just 17 months. Former CEO Mike Ullman returns to try to repair relationships with customers and suppliers.
Craftsman Brand Sold
Sears sells its iconic Craftsman tool brand to Stanley Black & Decker for $900 million. This sale of valuable intellectual property highlighted the company's desperate financial situation.
Kenmore and DieHard Sold
Continuing asset sales, Sears sells its Kenmore appliance brand rights and DieHard battery brand to raise cash and pay down debt as bankruptcy loomed.
Store Closure Acceleration
JCPenney announces plans to close 140 stores as part of cost-cutting measures. The company continues to struggle with declining mall traffic and online competition.
Jill Soltau Becomes CEO
Former Joann Fabrics CEO Jill Soltau takes over JCPenney, becoming the company's fourth CEO in six years. She focuses on improving the customer experience and inventory management.
Doubt About Survival
Sears' auditor raises substantial doubt about the company's ability to continue as a going concern. The company warns it may not survive another year without significant changes.