Sears and other retailers - especially low-end ones - are hurting their own bottom lines by under-investing in their stores and employees, says Zeynep Ton, author of the "The Good Jobs Strategy". Ton, an MIT professor, explains how Costco improved its profits by reducing the number of brands on its shelves and increasing its worker's paychecks in relation to its competitors. Ton also says the formula for "The Good Jobs Strategy" applies not just to low-end retail but to manufacturing and industrial jobs as well.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

More from Video

Listen: Will Smart Technologies Woo Millennials Back to Motorcycle Riding?

Listen: Will Smart Technologies Woo Millennials Back to Motorcycle Riding?

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Gold Is Plagued By Disinterest - U.K. Top Fund Manager

Gold Is Plagued By Disinterest - U.K. Top Fund Manager