Sears Holdings

On Tuesday, Sears Holdings announced it would close as many as 120 Sears and Kmart stores after a holiday sales season in which it fell flat on its face. What Sears really needs is a new image -- an idea that will lure shoppers back. Could "Made in the USA" be it?

Shares of Sears Holdings fell 27% Tuesday on news that the retailer would close as many as 120 poorly performing Sears and Kmart stores -- an unusually harsh response to a cost-cutting measure. Clearly, investors are concerned that the problems run much deeper -- and they're right to worry.

Sears Holdings on Tuesday reported a sharp drop in holiday sales compared to a year ago, and said the results will force it to close 100 to 120 Sears and Kmart stores. The company said the stores to be closed have yet to be identified.

It's going to be another interesting holiday shopping season as retailers jockey for position for the seasonal spending sprees. Where will buyers go? What will they buy? Let me go out on a limb and predict a few things.

When Sears and Kmart were merged into Sears Holdings by Eddie Lampert, it looked like he had a reasonable plan to reinvigorate the two battered retailers. What went wrong? Just about everything.

Millions of holiday shoppers aiming to avoid the crowds are headed online. But not all retailers do e-commerce with ease -- especially if you have questions and need help from a customer service representative. Which chains respond fast -- and which don't? We have the answers.

That's what retailers anxious to lure holiday shoppers are hoping to find out with their latest innovation: Walmart, Kmart, Sears and eBay are all testing versions of the "real" online store.