ChristmasSales

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.

The Bush Bust has resulted in shoppers abandoning mall retailers in favor of Wal-Mart and other deep discounters. The largest company in the world isn't taking this new business for granted, though. It has announced a new sales promotion, Operation Main Street, which it claims will save customers...