Sears posted a wider-than-expected loss for the second quarter on Thursday, with revenue falling short of estimates, much to the dismay of CNBC's Jim Cramer.
Though "retail is about growth," the department store chain has been stubbornly sluggish, Cramer said on "Squawk on the Street."
"This is the exact opposite from what we're seeing from almost every other major retailer," Cramer said. "I am surprised that a Wal-Mart or Target just doesn't say, 'let's go put them out of business.'"
Read MoreSears 2Q loss widens on sluggish sales
To Cramer, Sears' loss and revenue decline is a serious concern that needs to be addressed.
"It is just bleeding. Sears Canada is now bleeding. I don't know what you do," Cramer said. "If I were running it, I would come in, I would pay the leases. I would say 'Listen, we have all this credit, let's break all these leases. Let's pay them off. Let's get it down to a core group of stores. Let's figure out which Kmart is not doing well.'"