What’s killing Sears and Kmart?

Many of its woes are self-inflicted

Sears, the iconic department store chain that reigned over the retail landscape for generations, may be on the verge of going out of business.

And if it fades away, it will take Kmart, the big-box rival it merged with in 2004, with it.

Some of the company’s woes mirror those of other oldschool retailers who are struggling to keep pace in the digital age. But some are self-inflicted.

Here are four things that are killing Sears and Kmart.

1 Dwindling sales: Traditional retailers are losing shoppers who can buy goods ranging from shoes to soap by tapping their smartphones. But Sears is doing worse than many others. The sales dip at Sears stores was the worst among the top 250 retailers tracked by eMarketer as of November.

2 Undone by the Inter

net: The ability to go to Sears and buy everything from a blouse to a blow torch under one roof once had great appeal. But no brick-andmortar shop can offer more variety than the Internet, making traditional department stores increasingly obsolete. And if you want to browse for an end- less array of particular products, such as electronics or garden tools, specialized retailers such as Best Buy and Home Depot have multiplied in recent decades. 3 Out of step, out of style: The 131-year-old company is seen as outdated, failing to keep up with the changing tastes and habits of shoppers.

4 Two wrongs don’t

make a right: In November 2004, Sears merged with Kmart, bringing together two struggling chains.

The move to team with Kmart followed Sears’ decision the previous year to sell its lucrative credit portfolio, which was worth more than $30 billion.