What appears to be working:
The recent updates to the Shop Your Way rewards website look great. They are moving in the right direction with the website changes.
The apparel and overall merchandise presentation at Sears has greatly improved. The clothes are no longer just for the obese/elderly.
What still needs work:
The credit card scanners on the iPads do not work. Even after typing in my credit card manually, the employee had to run across the sales floor to the storage room to grab a copy of receipt off a desktop printer. I laughed quietly while he proudly handed me the receipt on 8 1/2 X 12 pieces of paper. The Target cash registers lined up at the door are far more efficient than employees running around with iPads and probably better at reducing theft.
Kmart needs direction. Right now, they are ineffectively competing against Target and Walmart. I get the sense that most Kmarts are just waiting their turn to be closed.
The mygofer project is a good idea to differentiate from Walmart and Target. However, most shoppers who can afford to pay for delivery are higher end shoppers unlikely to be found in your local Kmart (think Whole Foods grocery shoppers).
Sears dominates the appliance market. Why not link home appliances such as refrigerators to online sales? When the fridge detects that I am low on butter, it could add butter to my grocery list for delivery via mygofer. Mygofer could suggest weekly meal plans based number of people in my family and the fact that I am trying to lose 5lbs on a diet. There has to be some of benefit other than "it's online".
Develop competitive advantages in logistics versus Amazon and Walmart. For instance, announce a partnership or merger with a shipping company like DHL to create a better logistics network.
The enemy of your enemy is your friend. Can Sears partner or work with Google to beat Amazon? Are there any relationships with either Apple, Best Buy, or Radio Shack that could turn around the electronics department within Sears?