Marcus & Millichap

Special Report

Second Half 2018 Sears Bankruptcy

Special Research Report

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Redevelopment Opportunities Abound as Transformation Of Sector Spurs Bankruptcy of Historic Powerhouse

Modern retail climate drives adaptive strategies. Like several other high-profile retailers in recent years, Sears Holding Corp. failed to evolve with the changing retail landscape and took on an unsustainable level of debt. Consequently, it filed for Chapter 11 bankruptcy, announcing the closure of 142 locations in the process. The company’s minimal reinvestment into existing operations contributed to its downfall as it was unable to provide an experiential space, a characteristic that has proved to be essential for modern consumers. Additionally, its limited online infrastructure allowed companies such as Amazon and Walmart to steal market share, further diminishing Sears’ relevance as e-commerce became a larger part of the consumer shopping experience. Though the company is attempting to develop a restructuring plan in which it keeps some locations open, a full liquidation is certainly possible, which would significantly impact markets with large Sears footprints.

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