Walmart and Meijer simply have better stores than what Kmart and Sears ever had. Neglecting to remodel any of their stores or coming up with a new image is part of what killed them.
If Eddie hadn't been in the picture things could have probably been a lot better.
One of the biggest issues was Sears not having enough off-mall locations that are more convenient to customers. They needed to aggressively add more freestanding/strip mall stores as well as gradually spin off the low traffic Class B and C mall stores into freestanding locations.
Around here, I find the malls to be more convenient than many of the strip malls and freestanding stores, which are often out of the way relative to the interstates or have weird access restrictions (one, for example, is a simple right to get in but a right and two lefts to eventually go back the way you came; another is two miles down a congested arterial road; meanwhile, one mall is right off the freeway and the other is adjacent to an interchange).
Seems to me that the real advantage to off-mall locations is the lower rent, not convenient access for customers. Which makes sense - older development got their first and therefore gets the most convenient access, while newer development is stuck with what's left.