Uh. No. Sears suffered from a steady decline and never really adjusted with the times. The Kmart takeover (and it was really Kmart) made it worse. In the past 40 years they've made some really bad decisions.
However, department stores are still a dying breed. Sears suffered from the same hubris that Kodak did. They didn't change with the times, fearing that they would lose their bread and butter. Kodak invented digital photography but didn't commercially develop it fearing it would damage their film business. Sears was late to the internet sales game. Even then, I could sense a decline in the late 80s. They had made a lot of expensive investments and acquisitions such as Dean Witter that they hoped to attract customers. They eventually divested themselves of these, including Allstate and Prodigy.
But not selling Disney merchandise? Is this some kind of satire? The biggest issue for Sears was competition from
Walmart and Target.