As bankrupt Sears Holdings inches toward liquidation, Amazon on Monday became the most valuable public company in the world, surpassing Microsoft.
Many people consider Sears to have been the Amazon of its day. It was the so-called everything store. Shoppers could order items through Sears’ print catalogs and later pick them up in stores, a service that many retailers are just now starting to incorporate with their websites today. In many ways, Sears set the bar for retailers such as Walmart and Target to follow. And it’s those companies, including Amazon, that ultimately sped Sears’ demise.
Sears shares hit an all-time high of $195.18 in April 2007, when Amazon’s stock was hovering around just $60. Over the years, Sears’ market cap has tumbled from roughly $30 billion to under $100 million, as the company has struggled with sales declines and failed to invest in its stores. Meantime, Amazon’s growth has accelerated as its online business has flourished.
And — to Sears’ detriment — Amazon has other valuable divisions outside of retail, like Amazon Web Services. In 2017, Amazon’s total business reported $178 billion in sales compared with Sears’ $16.7 billion. While Amazon doesn’t break out retail sales, eMarketer estimated in July Amazon’s e-commerce sales in the U.S. would amount to $258.2 billion in 2018.
In September, Sears’ stock breached the $1 mark for the first time, as Amazon shares had just hit $2,000. That was right before the department store chain filed for Chapter 11 bankruptcy protection on Oct. 15. For the past few months, Sears Chairman Eddie Lampert has been trying to push through a bid that would salvage some of the company’s remaining assets. Now, he has until 4 p.m. Wednesday to pay a $120 million deposit to allow for his deal — to keep 425 Sears and Kmart stores open — in play.
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