A Star In The Gloom At Sears

Philip J. Purcell is not the kind of guy to boast. Having launched his career as a consultant at McKinsey & Co., he learned early that tooting your own horn doesn't always win you applause. Purcell lets the facts speak for themselves when it comes to his company, Dean Witter Financial Services -- the brokerage and credit-card arm of Sears, Roebuck & Co. The trouble is, those facts lead to the only question that can really make him squirm: Given his sterling performance at Dean Witter -- and the sorry state of Sears' retail operations -- why isn't Phil Purcell running the show at Chicago's Sears Tower?

Purcell's answer is predictable: "I have the best job at Sears, Roebuck & Co.," he says. "I'm very happy doing what I'm doing." But the reality of Sears today begs the question. If you include profits from the Sears credit card and Allstate Insurance, virtually all of the giant company's earnings have come from financial services since 1985. In terms of earnings growth, Dean Witter and the Discover Card have been the sole bright lights. The venerable retailing business, until recently run directly by Sears Chairman Edward A. Brennan, has defied all efforts to stem its decade-long decline. And as he struggles with a company that seems increasingly out of control, Brennan's leadership has been the subject of several disruptive proxy fights and repeated sniping by institutional shareholders.