Righto - I'm from New Zealand and don't really know Sears, other than what I may have seen in movies or other media.

If people are not sitting at the heart of an organisation it's because dollars and profits are taking up too much room.

How do management expect people to engage with an intangible if that object hasn't been imbued with either personality or innovation?

I don't see a problem with selling Sears branded products in other stores - but only as long as there is something else, something extra that pulls consumers into a Sears store or gets them to buy it online. There has to be an additional benefit to purchasing directly through Sears. 

Where they need to focus on is:

1. Brand proposition
2. People and values
3. Product innovation