Moving their premier tool lines to China while still charging Made In USA premium prices was an even bigger mistake especially since the Chinese tool quality was obviously worse. Also, it was K-Mart that bought Sears in an attempt to keep K-Mart afloat.
I noticed that about ten or so years ago. Same little compressor, Sears name on one, Harbor freight version was about half the price. Same for air nailers.
But in HF you didn’t have one programmed sales Associate after another nagging you to buy an extended warranty, like HH Gregg salesman stalking you around the store: “No. For the third time, I’m just looking. But when I’m ready to buy it won’t be you writing it up.”
The sellout to K-Mart was the big play for the Sears Board of Directors to get out from the Defined Pension Plan. Once they sold out the new company didn't have to honor the plan and the funds were absorbed back and given out to the voting stock holders, which, of course, were the Board members.
My sister worked for Sears for 30 years and lost her Defined Pension then and had to start over at that point with a 401K. There was another sellout to a holding company (owned by the Board) that gutted that 401K so when my sister retired she was offered either $100 per month or $50K. That's it...for 30 years of work.