The economy is doing better. Homes are being built again, house prices are up, hiring is up. However, just because the economy is good doesn't mean brick and mortar retail will see huge gains. Most will see a some kind of increase but whether or not a specific company does or doesn't depends on how they are managing their stores. Sears isn't seeing an increase in sales, because, why? They aren't being managed correctly, and Sears should be seeing big gains in hardlines since the country is entering into a housing boom.
Now, more people are buying online. People are shopping less in stores. No traffic or parking to deal with, no dings in cars due to carelessness with the shopping carts, no uncomfortable or crowded stores, no screaming kids and their oblivious parents, no annoying music, no running around town for something that's not in stock, no checkout lines, no searching for help, no putting up with apathetic employees. It's just so convenient and easier to get a better deal.
I am one of many who shop online and let me tell you, once you do it there's no going back unless you like the old-school "touch and see" and interaction. I can't wait to be able to order groceries since I hate shopping for them. Once they start delivering to rural areas, I'm going to be as happy as a clam.