While Sears has been struggling to survive in the US, the retail chain thrives in Mexico. And when we visited stores in both countries, it was easy to see why.

Advertisement
While Sears has been struggling to survive in the US, the retail chain thrives in Mexico. And when we visited stores in both countries, it was easy to see why.

Sears Mexico

Toya Sarno Jordan/Business Insider

At a Sears store in Mexico, these toddler mannequins look sharp.

Advertisement

Greeted with a floor mat reading "bienvenidos" and a pleasant "buen día" from a guard as you walk into the store, it's instantly clear by its appearance and appeal that Sears Mexico is heading down a far different path than its American counterpart.

As Sears US struggles to keep its head above water, Sears Mexico has as much of a solid footing in the country's retail market as any of its competitors.

In efforts to avoid liquidation, Sears' chairman Eddie Lampert successfully proposed a bid via his hedge fund, ESL Investments, to buy $5.2 billion in assets, including 425 stores. This could potentially save up to 45,000 jobs.

The iconic retailer's once strong presence in the US has thinned significantly in recent years, with its sales falling significantly since 2014.

Advertisement

This lack of financial support has visibly eroded the stores' allure on many levels, including a shortage of staff, stock, and upkeep in many location.

Lampert blames Sears' descent on a shift in consumer spending and e-commerce, factors that haven't yet affected Mexican retail sales.

The key to Mexico's success? His name is Carlos Slim Helú. The richest man in Mexico, Slim purchased Sears Holdings through his retail holding Grupo Sanborns, which presently owns 99% of Sears Mexico.

Sears has operated in Mexico since 1947, and in 1997 Slim added Sears to his list of profitable business ventures, which include financial companies, a mobile phone empire, as well as businesses in construction and real estate.

Nearly 100 stores throughout Mexico operate under Sanborns, many of which are being remodeled, and three of these are even brand new. Sears Mexico's total sales have also been growing year over year, with 3.4% positive growth in 2017.

Advertisement

Although it can't be said that Sears Mexico is dominating the country's retail market, its growth is in sharp contrast to the rapidly deteriorating reality Sears US is facing.

We visited Sears stores both in the US and in Mexico to get a sense of how they are doing in terms of appearance, products, staff, and general upkeep - and we saw some major differences.

{{}}

There are about 100 Sears stores in Mexico.

There are about 100 Sears stores in Mexico.

Source: Bloomberg

When Sears filed for bankruptcy in mid-October, it had 687 stores, though it has closed many since then. Lampert's plan is to cut the store fleet down to 425 in the US.

When Sears filed for bankruptcy in mid-October, it had 687 stores, though it has closed many since then. Lampert's plan is to cut the store fleet down to 425 in the US.

Source: Bloomberg, Business Insider, Business Insider

Advertisement

We visited different Sears stores in Mexico City, the first located in the prestigious World Trade Center in south-central Mexico City, where Sears and Sanborns are the main tenants.

We visited different Sears stores in Mexico City, the first located in the prestigious World Trade Center in south-central Mexico City, where Sears and Sanborns are the main tenants.

Inside, the store had a tidy, well-kept appearance.

Inside, the store had a tidy, well-kept appearance.
Advertisement

In another three-story location in Mexico City, we were greeted by a colorful mannequin display.

In another three-story location in Mexico City, we were greeted by a colorful mannequin display.

We've also visited US Sears stores in Jersey City, New Jersey, Woodbridge, New Jersey, and in the Richmond area of Virginia. At a Jersey City location, the store appeared to be in good shape at first glance as we walked in …

We've also visited US Sears stores in Jersey City, New Jersey, Woodbridge, New Jersey, and in the Richmond area of Virginia. At a Jersey City location, the store appeared to be in good shape at first glance as we walked in …

Source: Business Insider

Advertisement

… but as we dug deeper, we found that some sections were a bit of a mess.

… but as we dug deeper, we found that some sections were a bit of a mess.

Source: Business Insider

In the Jersey City, New Jersey, store, there was a small men's section on the ground level that continued on the first level …

In the Jersey City, New Jersey, store, there was a small men's section on the ground level that continued on the first level …

Source: Business Insider

Advertisement

… while in Mexico the men's section occupied a good part of the ground and first floor.

… while in Mexico the men's section occupied a good part of the ground and first floor.

Sears Mexico's departments appeared fully stocked throughout all sections.

Sears Mexico's departments appeared fully stocked throughout all sections.
Advertisement

However, in the US, entire sections of the store in Woodbridge, New Jersey, looked empty.

However, in the US, entire sections of the store in Woodbridge, New Jersey, looked empty.

Source: Business Insider

The furniture and appliances department was where I found the most customers in Mexico.

The furniture and appliances department was where I found the most customers in Mexico.
Advertisement

Although there seemed to be more customers in Mexico than we found in the US…

Although there seemed to be more customers in Mexico than we found in the US…

Source: Business Insider

…it felt like there was more staff than customers in Sears Mexico, often with multiple employees working in one department.

…it felt like there was more staff than customers in Sears Mexico, often with multiple employees working in one department.
Advertisement

Sears Mexico had a strong kitchen appliances selection.

Sears Mexico had a strong kitchen appliances selection.

The electronic appliances department also had a good variety of products and brands…

The electronic appliances department also had a good variety of products and brands…
Advertisement

…as well as an ample luggage section.

…as well as an ample luggage section.

Everything seemed in place throughout the store in Mexico…

Everything seemed in place throughout the store in Mexico…
Advertisement

…but we did find a pile of bricks in the middle of the floor in Jersey City…

…but we did find a pile of bricks in the middle of the floor in Jersey City…

Source: Business Insider

…and a fridge among the furniture, instead of in the appliances section.

…and a fridge among the furniture, instead of in the appliances section.

Source: Business Insider

Advertisement

Even during holiday sales season in Mexico, clothes and items on sale were packed in a mostly tidy fashion.

Even during holiday sales season in Mexico, clothes and items on sale were packed in a mostly tidy fashion.

The few items in the US store's clearance department were spread out to make it seem like there were more products.

The few items in the US store's clearance department were spread out to make it seem like there were more products.

Source: Business Insider

Advertisement

The children's section was large in Mexico, filled with an abundant variety of toys and clothes.

The children's section was large in Mexico, filled with an abundant variety of toys and clothes.

The children's section also took up a large section of one floor in the US…

The children's section also took up a large section of one floor in the US…

Source: Business Insider

Advertisement

…but Mexico Sears provided displays with a higher-scale appearance all round, even in the kid's department.

…but Mexico Sears provided displays with a higher-scale appearance all round, even in the kid's department.

Most signs we found at a Sears in the Richmond, Virginia area were handwritten.

Most signs we found at a Sears in the Richmond, Virginia area were handwritten.

Source: Business Insider

Advertisement

But in Mexico, all the signs we saw were printed or laminated throughout the store.

But in Mexico, all the signs we saw were printed or laminated throughout the store.

We also found many folding tables used for display in the US.

We also found many folding tables used for display in the US.

Source: Business Insider

Advertisement

Whereas in Mexico, stores had all displays on sturdy tables…

Whereas in Mexico, stores had all displays on sturdy tables…

…and this was consistent through every department.

…and this was consistent through every department.
Advertisement

Sloppy mannequin displays were left leaning against the wall rather than propped upright in Jersey City, New Jersey.

Sloppy mannequin displays were left leaning against the wall rather than propped upright in Jersey City, New Jersey.

Source: Business Insider

Mexican mannequins had a very different mood — they were elegantly dressed and displayed the latest collections…

Mexican mannequins had a very different mood — they were elegantly dressed and displayed the latest collections…
Advertisement

…and many of them were striking lively poses.

…and many of them were striking lively poses.

Some of them were placed in stands with lights around them…

Some of them were placed in stands with lights around them…
Advertisement

…and even the toddler mannequins were looking sharp.

…and even the toddler mannequins were looking sharp.

We found accessory racks in Jersey City, New Jersey, that were half empty.

We found accessory racks in Jersey City, New Jersey, that were half empty.

Source: Business Insider

Advertisement

Some displays had barely anything in them at all, such as in the jewelry section…

Some displays had barely anything in them at all, such as in the jewelry section…

Source: Business Insider

…and this sock display in the Richmond, Virginia area.

…and this sock display in the Richmond, Virginia area.

Source: Business Insider

Advertisement

In Mexico, racks were mostly full in areas surrounded by other racks displaying similar items.

In Mexico, racks were mostly full in areas surrounded by other racks displaying similar items.

Products were displayed in a visible effort to make them appealing.

Products were displayed in a visible effort to make them appealing.
Advertisement

The women's accessories department was one of the most cluttered departments in Mexico, but it was still orderly.

The women's accessories department was one of the most cluttered departments in Mexico, but it was still orderly.

We even found a motorcycle section in Mexico.

We even found a motorcycle section in Mexico.
Advertisement

Even from the outside you notice a stark contrast between some Sears US and Sears Mexico stores.

Even from the outside you notice a stark contrast between some Sears US and Sears Mexico stores.

In Mexico, you get the impression that the stores are being well maintained.

In Mexico, you get the impression that the stores are being well maintained.
Advertisement

Whereas your first impression at some locations in the US is one of decline ...

Whereas your first impression at some locations in the US is one of decline ...

... and ruin.

... and ruin.
Advertisement