Pasadena – Sears: Downsizing an Icon?

The old Sears logo was briefly uncovered during the facade renovation.

The old Sears logo was briefly uncovered during the facade renovation.

It is no secret that Sears has been struggling, having lost 19% of its stock value in the last year ($48.04 to $38.90). But this is something I didn’t expect to see, the subleasing of space in its Pasadena store to Home Goods, a subsidiary of TJ Maxx which has seen their stock price rise in the same period from $58.34 to $78.34, a nearly 26% increase.

I estimate that approximately a third of the bottom floor is now taken up by Home Goods, while the balance of the 216,000 square foot building is still occupied by Sears. The Home Goods portion opened on May 18, 2014.

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Home Goods sells “one-of-a-kind handcrafted merchandise, high-end designer goods found in department stores and specialty stores at significant discounts.” Home Goods, which opened in 1992, has approximately 400 stores with long range plans for between 750 and 825.

Sears, the once dominate department store in the United States, is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. (Sears) and 500 full-line and specialty retail stores in Canada operating through Sears Canada Inc. (Sears Canada), a 95%-owned subsidiary.

Home Goods now occupies the eastern portion of the bottom floor of the Pasadena Sear.

Home Goods now occupies the eastern portion of the bottom floor of the Pasadena Sear.