Here's how you finally fix Sears, says Jim Cramer

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.'"

Shoppers at a Sears store
Scott Mlyn | CNBC
Shoppers at a Sears store

Sears CEO Edward Lampert called the company's second quarter performance "unacceptable" and said steps were being taken to correct the situation.

"That has been a common issue to say 'unacceptable,'" Cramer said. "He just keeps saying 'challenges, challenges.'"

Read MoreSears posts loss for ninth straight quarter

Until Sears makes real changes, Cramer said it will be hard to have even a single bullish thought about the company.

"I don't have anything good to say. I want to say something good. I don't," he said. "It's also the one store that I do not shop at."

We want to hear from you. How can Sears turn things around? Leave your comment below.

—By CNBC's Drew Sandholm.

DISCLOSURE: When this story was published, Cramer's charitable trust did not own Sears, Target, or Wal-Mart.