Evan...Sears had the right model it just did not convert the catalogue system to online had they done so they would have still been hampered as the bean counters had eliminated most of the catalogue warehouses and wiped out the meat and potatoes of the business like hardware and home goods. Had the internet blossomed in the 70's both Sears and Eatons could have been the dominant merchants today as both had home delivery systems substantial distribution facilities. 
Sears issue is more the mix of merchandise and decades of bad corporate management. Sears only solution now is to convert it's Vancouver and Toronto stores to condos and sale them to foreign buyers.