The Losing Battle of Sears' Sun Tzu

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July 11 (Bloomberg) -- Bloomberg’s Mina Kimes reports on Eddie Lampert’s leadership style at Sears. She speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

The news is that eddie is the ceo, so we want to see how he is going to do it.

We found that thomas one, he has already's -- he has always been running the company.

He is chairman, he was not there, but he was calling the shots.

So you have looked inside his performance, at heckscher -- at how he runs the company.

It is fascinating, not your particular -- not your typical retailer.

Kind of like a hedge fund.

Instead of an integrated model, where all the different divisions are supposed to work together and under the same leaders.

They are almost like autonomous businesses.

Their own board of directors, too.

They have to meet constantly.

So it is not working.

Why is he doing it?

He believes it works.

He has had so much success in investing, so you can almost see why he thought the same approach would work in this industry.

I found it interesting what you said that he has always in there, but physically is not at the store.

He is running the company from his home office somewhere else, now florida.

He recently moved to a $30 million mansion in florida.

He only goes to the headquarters a couple times of year.

Who does he delegate leadership to?

Who does he delegate authority to?

To dozens of independent businesses.

They each have autonomy and are accountable for their own results.

So appliances, i go to sears to buy a washer and dryer, there is one separate business for that.

That it's is -- that is its own business, yes.

Within a typical sears, how many separate businesses are there?

Over 30. the knock on mr.

Lampert is he has no retail experience.

Has he hired people with retailers.

? he has attempted to at times, but oftentimes it has not worked out.

I find that he tends to get along with better -- get along better with people from the finance and technology world.

Give us an example of how running the businesses as autonomous businesses changes things up.

A classic thing for a big-box retailer is for some departments offer consumables to create loss leaders.

The profit margin benefits the whole store.

Adam parker, you cannot talk about individual securities, but your team is looking at management.

How unusual is the unusual in management?

Most companies run the same, don't they?

Sometimes the difference is great.

It is hard to tell if it is just that it doesn't matter that the boxes are not good, people do not want to go there and it is not the management style but something else.

It depends on the circumstance.

Normally people look at the numbers, the change in offering profit versus the capital employed, stock performance.

It probably will take more time to make a judgment call.

What is one thing that eddie lampert has done well?

What is he getting credit for?


He has been an early mover on technology, integrating their website with their stores.

The problem is that is a tiny fraction of overall sales.

We appreciate it.

This text has been automatically generated. It may not be 100% accurate.


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