Sears is struggling hard to retain their market position and improve their financial positions by increasing their sales revenue and profits in this highly competitive market. This forced them to close down hundreds of their retail outlets in last few years. The introduction of online market and competitors added to the problems and Sears was put in further trouble due to inability to recover at least their operational cost of many retail outlets. The situation is worse for Sears after the announcement made by J.C. Penny about targeting their business and outlets after they registered a successful profitable position and registered an increase of 30 percent in their sales during the holiday period of November and December. Although J.C. Penny stayed away from the appliance business for more than three decades and returned two years ago, they managed to register an appreciable growth in this sector till date. CEO Marvin Ellison also stated that they would be going hard on their fellow competitor Sears which is struggling hard in the appliance market to generate sufficient cash to efficiently execute the operational activities in many retail outlets.

The critical conditions of Sears are also clearly visible in their annual report which highlights poor financial conditions and the recent announcement about closer of 64 Kmart and 39 Sears stores in near future raises questions about their existence in the long term in this competitive market. J.C.Penny is avoiding relying simply on the appliance business in many of their stores and hence added mattresses and bolsters to their category in order to benefit from the complete home sector and regain their lost position in the market and improve their profits from this sector. Sears retained their market leader position in the selling of appliances for a long time in the past in the US but is currently not able to recover their initial investments in retail outlets from their sales. The primary intention of targeting their fellow competitor is to increase their market share and regain their market leader position in the appliance market at the cost of failure of Sears. Last quarter before the holiday season began, Sears announced the decline in their sales nearly up to 17 percent and last year they made strategic decision to start the sales of their Kenmore appliance brand to be done through the medium of Amazon.

The overall decline in the number of visitors visiting the shopping retail outlet of Sears is benefitting their competitors like J.C.Penny and Macy’s since the crowd is diverted to them after the closure of these retail outlets in many shopping malls.