Business
Storied retailers limp through 2020
When is the last time you shopped at a Sears department store?
Most Americans probably can’t recall their most recent shopping trip to the legendary retailer. Formerly the biggest retailer in the country, the company that owns Sears and Kmart, is on life support after the retailers emerged from bankruptcy two years ago, according to CNN Business.
Transformco, the private entity that acquired Sears and Kmart after Sears Holdings entered bankruptcy in 2019, is likely biding its time until new tenants can be located to fill its valuable real estate while the company continues to sell off other valuable assets. Advance Auto Parts purchased the DieHard automotive brand, while Stanley Black and Decker purchased the Craftsman tool brand. The Kenmore appliance brand is also up for sale, according to the CNN report.
While Sears and Kmart are widely considered terminal, the situation is mixed with other retailers. According to USA Today, department, specialty, off-price, and apparel retailers suffered the most in 2020, with high-profile liquidations of the Stein Mart and Pier 1 Imports chains.
Legacy retailers, including Sears, have suffered the most as the retail landscape continues to transform, especially as Americans turned to online shopping. According to the Harvard Business Review, these companies struggle to run the company while implementing necessary changes for survival. Legendary department store Lord & Taylor did not survive 2020, while household names like JC Penney and Neiman Marcus both filed for bankruptcy.
Not all retailers are experiencing the same catastrophic fallout, however, ‚ mega-retailers Walmart, Costco, Target, Dick’s Sporting Goods, Home Depot, and Lowe’s all finished 2020 in a strong growth position as they adapt more quickly to customer needs and the changing marketplace, according to Barron’s.
The biggest winner in 2020? Online retail giant Amazon, which increased its stock price by 78 percent.
