Fair points, but it is extraordinarily rare for management to direct consumer behavior. (This is one of the ways Steve Jobs was so unique.) The ability to understand customers and direct an organization around those customers' needs and desires is the most fundamental role of an executive. So yes, management failed, but they failed to understand how consumers had changed. Most consumers no longer drive to centralized shopping centers. They buy online or they go to a place nearby or one that is convenient to their commute. Driving across town just to go to the mall (where Sears usually is) just is not common enough anymore.
Their website is still one of the worst I've ever seen. At least they have improved the ability to see if you're looking at a product that Sears actually carries versus 3rd parties selling through their site. They indeed have been trying to be Amazon, but without letting go of the physical stores; you can not excel in both worlds, at least not when you're the size of Sears in the realm of physical stores or aspiring to be the size of Amazon online.
You don't have to agree that fault lies with consumers. Most consumers (who have ever even taken 2 seconds to consider the matter) don't agree with that statement. That's why it isn't going to change any time soon.