The right idea, but probably too late.
Walmart has spent billions on automation and strategic planning to shave every last penny off their cost of goods - there is no real way for any competitor to match them strictly on price. Competitors have to bring the same approach by putting smaller stores in "underserved" markets where people might not notice that the prices are a dollar or two higher than Walmart. Sears and JCP are big box stores that tend to be located in Walmart neighborhoods, already - places where they also have Kohl's and Target to deal with.
It's understandable that JCP tried to go up instead of down, but the middle class is shrinking so fast there isn't much "up" left to chase. Ron Johnson's plan might have worked in 2004 - but he failed to understand that the actions and attitudes of Obama and his 60's radical cohorts have slammed the door on upwardly mobile people.
The reason I think it’s not too late for Sears is that they already own K-Mart and their brand is viewed as more quality than Wal-Mart.
Honest to goodness, I was looking for shirts in Wal-Mart the other day, and every shirt on the rack was made in an Arabic country...Pakistan, Jordan,etc. I’m not lying.
There is NO WAY I’m sending those folks one dime of my money. Period.
Sears could out-quality Wal-Mart and they’re positioned to do it.