Sears simply can't reduce its cost structure fast enough to keep paces with its decline in sales. Killing stores certainly doesn't help. since those stores generate enough revenue to pay for a lot of the fixed costs that Sears requires to run its business. The number of buyers needed, contracts, IT services, legal, distribution channels, advertising required, and other functions does not decline in a linear fashion with the number of stores.
If Sears were actually serious about stemming losses, they would entirely exit lines of business, and focus solely on the profitable ones. That might mean eliminating the retail stores entirely, and channeling all resources into Home Services, delivery, and branded goods. If it is not too late. Build smaller, focused stores, and close out the big, general merchandise retail channels. Sears has not been competitive in that arena in decades.
Excellent point by @QxaJOOA-ojo. And while a lot of jobs would be lost like this, plenty more would be created.