What’s Killing Sears?
Sears have been experiencing internal disputes that have negatively affected their
operations. However, the primary shareholder and CEO, Eddie Lambert, has a different idea; he
accuses the retirees of the company for all their misfortunes. The pension plans arrears that the
company has for their retired employees, according to Lambert, which amounts to billions of
dollars which they own their former employees is draining the company financially. He further
indicates that in the past five years, the company has managed to pay its former employees their
pension plans sums that exceed $2 billion (Isidore, 2018). Since their merger with Kmart in
2005, they have been paying an extra $300 million annually.
If sears would have reinvested all that money in other operations, the company would be
having a better competitive power to wrestle with other retail companies which they used to beat
in the past but are now outperforming them. Large pension plans have been the cause of the
decline that the company is experiencing, and it would take time for the company to recover.
However, analysts have a different approach to the situation. Lambert has been pointed at for
being the one bringing misfortunes to Sears and hides in the guise of large pension plans to cover
up for his mistakes. His bad decisions about marketing played a significant role in the decline of
the company. Lambert failed to invest enough in the stores and was unable to exploit online
selling, which their competitors were doing so well at. Even though it is undeniable that the
traditional pension’s plans of the organization have a hand in the decline, he also failed in his
THE DECLINE OF SEARS 3
Isidore C. (2018). What's killing Sears? Its own retirees, the CEO says. Retrieved from