The Truth Behind Why Sears Will Have a Bad Holiday Season

Remember Sears? Not many do, as evidenced by this year's financial results. Sears domestic lost $514 million year-to-date as of August 2. Using an adjusted profit number from Sears for its domestic business, the segment has still lost $269 million. Here is why Sears is unlikely to escape its downward financial spiral during the holidays. J.C. Penney is back as a relevant place for shoppers, offering eye-catching promotions on private label and national brands like Nike. J.C. Penney is also in better stock for basic apparel compared to a year ago, while Sears is continuing to cut inventory. The likes of Macy's, J.C. Penney, and Best Buy are all offering ship-merchandise-from-store programs to satisfy online orders, limiting the online sales potential of Sears.com. TheStreet's Brian Sozzi reports.