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Sears struggling but gaining ground as back-to-school retailer

Sears may have had a rough second quarter, but a new retail shopping report reveals it’s still got some mojo in the back-to-school consumer season.

August 4, 2015

Sears may have had a rough second quarter, which led to its shares taking a big dip as July closed, but a new retail shopping report reveals it’s still got some mojo in the back-to-school consumer season.

For the past two to three years Sears’ footing as a powerhouse retailer has been weakening with Wal-Mart and Target taking leadership spots. On Monday Sears released insight that comparable store sales dipped sharply and its shares then followed, losing 8 percent and hitting a three-year low, according to a Reuters report. The company will report official second quarter financial earnings on Aug. 20. According to published reports Sears’ same-store sales were down 10.9 percent in the first quarter of this year, biggest drop in five years.

But company leaders are likely optimistic on second quarter news thanks to a real estate investment move, and also given a recent retail shopping report that reveals Sears may be on the rebound trail as back-to-school shopping gets into a full swing.

While Target, Old Navy and Wal-Mart are leading the charge Sears is beating out T.J. Maxx and Macy’s as a preferred shopping retailers. A new YouGov’s BrandIndex reveals Sears has made “significant strides” compared to a year ago and is even ahead of discount store Marshall’s.

As of this week more than half of back-to-school parent shoppers are first heading to Wal-Mart and Target (62 percent and 53 percent respectively) and then Old Navy. Then J.C. Penney and Kohl’s are next and doing just about the same as they did last year, according to the report.

But Sears, which has been shuttering stores, streamlining operations and losing sales quarter after quarters, is now right behind J.C. Penney and Kohl’s, a spot it hasn't been in for quite some time. In fact, the report lists Sears as the "top improver" of the back-to-school retail segment as it upped it score with shoppers by 8 percent this season.