Hail Mary

Sears Holdings, which also operates franchises your mom used to shop at like Kmart and Lands’ End, has been in a "death spiral" for some time now, a classic victim of disruption, first from big-box discounters like Wal-Mart and then from the web. Sears’ most recent and representative quarterly report last week showed declining margin rates, net losses of $279 million and a financial performance the company's CEO called "unacceptable."

To say J.C. Penney has been struggling is a vast understatement. Last month, the department store reported horrific holiday-quarter results, with the most drastic decline in sales in its 111-year history of operation. In addition, former J.C. Penney CEO Allen Questrom delivered a brutal takedown of the department store's current status in an interview to CNBC, stating it "can't continue with the same leadership." But, with Johnson's recent announcement that he "has no plans of retiring," the retailer is forced to rely on a new strategy other than the CEO's departure. Enter: Joe Fresh.