Overview
Sears is one of America's oldest retail brands. Today, after the bankruptcy of Sears Holdings, it is mainly an online business at sears.com, with only a small number of stores left. It runs an online marketplace where third-party sellers can offer products, especially in home appliances, tools, home and lawn and garden. For most brands, Sears is a niche US channel with limited reach compared with its past.
Who is behind Sears
Sears Holdings, which owned Sears and Kmart, filed for Chapter 11 bankruptcy in October 2018, when it still had around 700 stores. In February 2019 Transform Holdco, known as Transformco and controlled by former Sears Holdings CEO Eddie Lampert through his investment fund ESL, bought the remaining Sears and Kmart stores, websites and other assets. Since then Transformco has closed most of the remaining stores. Sears and Kmart had nearly 3,500 stores at their peak, but only a small number of Sears stores are left. Transformco says it focuses on growing sears.com, its Shop Your Way rewards programme and Sears Home Services, which repairs appliances. Sears also owns the Kenmore appliance brand.
The Sears Marketplace
Sears Marketplace lets sellers offer products on sears.com, kmart.com, partner websites and apps. It covers around 20 major merchandise categories and lets sellers take part in sitewide marketing and merchandising. Sears has charged a monthly fee for marketplace sellers plus commissions that depend on the category. Integration partners such as Rithum connect sellers to the marketplace.
What a brand should think about
- Limited reach. Sears has far fewer customers than in the past, so expected sales are modest.
- Fit with categories where Sears still has a following, such as appliances, tools and home improvement.
- Financial health. Transformco is a private company that doesn't publish results, and some suppliers have reported late payments in the past, so brands should review terms carefully.
- Costs, including monthly fees and commissions, compared with expected sales.
Why Sears matters for brands
Sears remains a well-known name in US appliances and tools, and its marketplace offers a small, additional online channel in those categories. For most brands, larger US marketplaces will offer far more reach.
How eBrands looks at Sears
eBrands works with brands on marketplaces across Europe and North America and helps them focus on the channels that matter most. If you want to see whether Sears is worth adding to your US channel mix, we are happy to talk it through.
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