While Sears in the United States has faced significant challenges, including store closures and financial struggles, Sears Mexico presents a starkly different picture. Stepping into a Sears store in Mexico is often described as a surprisingly positive experience, a world away from the narrative surrounding its northern counterpart. From the welcoming “bienvenidos” floor mat to the courteous “buen día” from store personnel, the atmosphere immediately signals a retailer in tune with its market and customers.
The divergence in fortunes between Sears US and Sears Mexico is striking. In the US, the once-iconic department store chain has seen a considerable decline, battling falling sales and store closures. Despite efforts to restructure and avoid complete liquidation, the American Sears has visibly suffered from underinvestment, leading to reduced staff, limited inventory, and a general lack of store maintenance in many locations. Chairman Eddie Lampert attributed Sears US’s woes to shifting consumer spending habits and the rise of e-commerce, factors that seemingly haven’t hampered Sears Mexico to the same extent.
The key to Sears Mexico’s resilience and continued growth lies in its ownership. Since 1997, Sears Mexico has been under the umbrella of Grupo Sanborns, a retail holding company controlled by Carlos Slim Helú, one of Mexico’s wealthiest individuals. Slim’s Grupo Sanborns currently holds a commanding 99% stake in Sears Mexico. Operating in Mexico since 1947, Sears has thrived under Slim’s business acumen, becoming part of a diverse portfolio that includes finance, telecommunications, construction, and real estate ventures. Under Grupo Sanborns’ management, Sears Mexico boasts nearly 100 stores across the country, many of which have undergone renovations, with even new locations opening. This investment is reflected in Sears Mexico’s sales figures, which have shown consistent year-over-year growth, including a notable 3.4% increase in 2017.
While Sears Mexico may not dominate the entire Mexican retail landscape, its steady expansion and positive performance stand in sharp contrast to the contraction and struggles of Sears US. The contrasting experiences highlight the impact of regional market dynamics and strategic management in the retail sector. A visit to Sears stores in both the US and Mexico reveals significant differences in store appearance, product offerings, staffing levels, and overall upkeep, underscoring the separate trajectories of these two retail entities operating under the same iconic brand name.
