I don't know exactly how Sears should have changed to stay alive and vibrant...but whatever it needed to do, it didn't.
Illegals want higher discounts, working families could rarely find school and boy scout uniforms, much less actual work clothes, and what was a staple for mechanics and homeowners became a useless paltry selection.
So then they went through a very expensive re-imaging campaign where they ripped apart half their stores for months at a time only to re-open with even worse merchandise selections.
All along they took a very successful mail order company and basically shut it down, only later to start it up again at much more cost as a website. Simultaneous to that they went to on time shipping for stores, meaning that most stores were always out of popular products with customers being told to ‘shop for it online.’
All that said, I think some stores are back on track. The only question is if there's still enough of a company to survive, and I sincerely doubt that.