Will the Sears department stores survive the Canadian invasion of other U.S. chains?

Sears has been told to shape up or prepare to ship out of the Canadian market.

The chain came under fire this week after a report from Dejardins Securities flagged showed how its market share has declined precipitously since 2005.

With competition for its hardware and appliance departments from Home Depot, Lowe's and Rona and Canadian Tire's purchase of the Foranzi Group's sporting goods and apparel business, fewer product categories remain available for Sears Canada to dominate as before.

And a further threat is expected to come from the other American stores that have recently planned northern expansions.

The potential disruption comes some 60 years after Sears first crossed the border. Now, the likes of Target and J. Crew have confirmed their first Canadian locations, with Macy's rumoured to follow.

Compared to competitors which have promised a specific vision for their new markets, the Chicago-based parent company has been criticized for heeding little attention to Canada.

The story might have different had Sears' attempt to revive the Eaton's name been more successful. Sears, acquired the bankrupt brand in 1999 and then tried to revive it as a more trendy mini-chain in large Canadian markets. But the experiment failed by 2002 and downtown Sears locations became relatively indistinguishable from ones found in suburbia.

A new president and chief executive recruited from rebounding Loblaw and a new merchandising vice-president from now-defunct Linens 'n Things were presumably appointed with some expectation that they can apply some of their secrets to success

But the turnaround prospects for Sears, in its current form, are still considered a long shot due to the unshakable perception that all middle-class department stores have generally lost their appeal.

More choice for Canadian shoppers will also mean that the most complacent retailers will soon be shoved out of the way.