In the past couple days, there have been two indications that Sears Holdings (NYSE: SHLD) chairman Eddie Lampert realizes that his strategy to turnaround the company is failing, or at least flailing. First, CEO Aylwin Lewis resigned with the treads of Lampert's shoes implanted firmly on his backside.
Now, Lampert is giving up his own role in the day-to-day operations of the company, a sign that he is now aware of what most people have been aware of for a long time -- what the New York Times calls his "prickly personality and a hands-on management style" are not good for the company, especially given his utter lack of retail experience.
But the problem for Sears is two-fold: First, any real turnaround for the retail operations will require Lampert to loosen the purse-strings. Secondly, Sears needs better managerial talent.
As Herb Greenberg pointed out yesterday, "Lewis is being replaced by Bruce Johnson, who is head of the company's supply chain and operations. That Lewis is being replaced, even on a temporary basis, by someone with a background in supply management, and not a merchant, shows how shallow the depths are within Sears of true merchants/retailers."
Perhaps Lampert's decision to step aside from the management of the company will help lure in elite retail executives. Lewis's departure and Lampert's reduced role have to be seen as big positive for for Sears shareholders. Now all they need is for Lampert to spend the money to modernize an aging store base.
Lampert shrinks his role at Sears
Posted Jan 29th 2008 10:46AM by Zac Bissonnette
Filed under: Management, Sears Holdings (SHLD)
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Reader Comments (Page 1 of 1)
1-29-2008 @ 11:23AM
Bill Dollar said...
Ed Lambert is a very smart guy and Jim Cramer can't say enought nice things about Ed. But, Ed is not a retail expert, and his stepping back just might save the ship from sinking. But only if he spends tons of money to improve operations, and he probably won't do that!
1-29-2008 @ 11:51AM
MIKE said...
I ALWAYS THOUGHT THAT LAMBERT/SEARS WAS A REAL ESTATE PLAY???? WHAT HAPPENED??
1-29-2008 @ 12:51PM
prashant said...
the big problem is eddie lambert. His expertise is in hedge funds. He is not a retail expert. He did not have retail experts running the ship.
He is also a micromanager. Micromanaging is not needed on his level. He should have gotten retail experts to run his ship, and then hold them accountable.
Finally, eddie lambert's problem is eddie lambert. He seems to be so ego driven, he couldnt see what was in front of him.
He has to move fast, and get retail veterans who are very good at their jobs, and LET THEM DO THEIR WORK. He should not second guess his experts.
1-30-2008 @ 8:28PM
Larry said...
Eddie got envolved for only one reason"REAL ESTATE"
3-01-2008 @ 1:22AM
wnbyf said...
Guys, this is what needs to happen. I told Eddie weeks ago and he just didn't listen. Poor old Arthur Blank is having a tough time with the Falcon's. He can't get the high caliber talent he wants to make a team. Basically, he's a great retailer but not a good football owner. Eddie on the other hand, loves Bilicheck (or rather Bilicheat), You could say they are thick as thives. And now we know he loves Eli Manning. Just what the Falcon's need Belicheat and Manning. Eddie can't run Sears but he can make it happen and in the meantime Arthur can take the reigns of Sears. It's a WIN WIN situatution!! Touchdown,boys!