Amazon changed the game fundamentally. The only two effective strategies are to challenge them directly (Wal-Mart and their logistics and their free 2 day shipping/no membership website competitor) or to effectively blend the store/online experience with a huge push towards mobile ordering and curbside pickup or gig-style personal shopping delivery.
I'm not sure why Sears thought they could half-ass this transition and kind of do nothing to compete in today's market. Last time I was in a Sears, it was eerie and quiet, it smelled old, the prices were NOT GREAT and I ultimately priced the tools I wanted on Amazon for a good discount. Not like the old Sears Craftsman name and warranty mean much anymore anyway.