What: Sears is negotiating rent concessions for its few remaining stores as it grapples with a challenging retail environment dominated by online shopping.

Why it is important: This move underscores the difficulties faced by traditional retailers like Sears in adapting to the digital age and maintaining physical store operations.

Sears, once a dominant force in U.S. retail, is now seeking rent relief for its last-standing stores. The retailer, which has dwindled to less than a dozen locations, is working with Huron Consulting Group to negotiate concessions from landlords. Sears' decline began after its acquisition by Kmart in 2005, leading to store closures and financial struggles, culminating in bankruptcy in 2018. Despite exiting bankruptcy in 2022 with 22 stores, Sears now operates only 11 locations across the U.S. and Puerto Rico. The shift towards online shopping, accelerated by the pandemic, has further challenged big-box retailers like Sears, highlighting the ongoing transformation of the retail landscape.

Sears seeks rent relief for remaining stores