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This Tweet Explains Why Sears Continues to Fail

Stocks in this article: SHLD AMZN AAPL

That response might seem benign, but it's not. And I'll tell you why.

Sears -- from whomever runs its Twitter account to its delusional CEO Eddie Lampert -- operates from the most basic level of thought.

Because you can ALWAYS find (Sears) online the company seems to think it has addressed its problems. However, in all actuality, the comment and, more importantly, the innocent and well-intentioned sentiment that triggered it is the problem at Sears.

Catching up with the rest of the world, after a decade-long butt kicking by (AMZN), in no way indicates accomplishment at any level. In fact, each time I hear Sears or Best Buy (BBY) or J. C. Penney (JCP) mention a rise in online sales -- and hold it up as some sign of progress or, worse yet, success -- I get more pessimistic about their long-term prospects.

Amazon is not successful simply because it sells merchandise online. Amazon is successful because it provides a compelling proposition to consumers. For years it has visioned and effectively created a complete e-commerce ecosystem that lures people in to the cult of Amazon Prime.

If all you had to do to be a successful retailer is put your junk online, we'd all be CafePress (PRSS) millionaires.

Clearly, Sears doesn't understand this. It can't quite wrap its head around the gravity of the situation it's in.

That in one of the most highly-trafficked areas in the one of North America's most vibrant cities, it had to close its brick and mortar doors. The sidewalk outside of its now-shuttered flagship Canadian location carries thousands, if not millions of bodies per day. Yet Sears couldn't make this prime real estate work.

And we could talk about downtown Chicago as well as other failures.

Sears isn't closing these stores because its consumer moved online. If it thinks that's the trajectory it's working within, it's more delusional than even its Twitter account and Lampert's narcissistic public comments let on.

If it were that simple -- you can ALWAYS find us online -- Apple (AAPL), for example, would have no physical presence. But it does. And it continues to grow. Because Apple's a viable brand, selling products people want in environments they like to be in.

Apple's physical presence drives Apple's online success. And vice versa.

With its present leadership setting the tone, Sears will remain five to ten years behind the curve. It will chase what it thinks names such as and Apple have done to find otherworldly retail success. But it doesn't have anything beyond a horribly shallow understanding of what they did to achieve it.

--Written by Rocco Pendola in Toronto, Ontario, Canada

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.
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