The encyclopedia · Strategy & Leadership · Strategic decision · 1993
Sears killed its iconic catalog in 1993 — just before the internet reinvented mail order
For a century the Sears catalog was America's 'everything store' by mail. In 1993, bleeding money, Sears killed it — just as the internet made mail-order huge.
Sears · 1993-01-25
What happened
For about a century, the Sears, Roebuck catalog — the famous 'big book' and the Christmas 'Wish Book' — was the closest thing America had to an everything store you could order by mail. It sold everything from clothes to tools to kit houses, and it was how Sears built its empire and its direct relationship with American shoppers.
By the early 1990s, the big book had become a money-loser. Printing and mailing thousands of pages was expensive, sales and profits had declined, and in 1992 Sears posted a $3.9 billion loss — then the largest in the history of North American retailing. On January 25, 1993, Sears announced it would close 113 stores, cut 50,000 jobs, and discontinue the general merchandise catalog.
The decision made financial sense on its own terms — but it landed just as a new technology was about to reinvent mail order: the internet. The company that had invented remote shopping, and owned the deepest direct relationship with American consumers, walked away from the category right before it moved online. Sears never built a dominant e-commerce business; it lingered for decades and filed for bankruptcy in 2018, while Amazon — an online catalog of everything — took the crown Sears had invented.
Why it happened
- The catalog had become unprofitable, so Sears treated it as a cost to cut rather than a customer relationship and a capability to migrate online.
- Sears saw the catalog as a printing-and-mailing operation, not as the prototype of the remote retail the internet was about to supercharge.
- The company was in financial distress (a record $3.9B loss in 1992), which pushed it toward cost-cutting rather than investing in a new channel.
- No one inside Sears connected 'we are ending mail order' with 'we should be the ones to build online order.'
The lesson
Sears invented remote shopping a century before Amazon, then abandoned it just as it was being reborn online. Killing a loss-making channel can be right — but not the customer relationship behind it.
Aftermath
Sears's retreat from the catalog is taught as one of the great missed pivots in retail history: the company that literally invented the everything store gave up the category on the eve of its reinvention. Sears lingered for years, merged with Kmart, and filed for bankruptcy in 2018, while Amazon — which started as an online catalog of books — took the 'everything store' crown.
Sources
- Sears — Wikipedia (1993 discontinuation of the 'big book' catalog, 1992 $3.9B loss)
- Sears was the Amazon.com of the 20th century — Chicago Tribune (May 2017)
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