Report: management turnover hurts Sears
A report from Cleveland Research points to significant management turnover at Sears, which has been linked to frustrations over inventory reduction aimed at improving cash flow.
The activity is nothing new for the struggling retailer, whose sales have dropped every year since 2007. Turnover has been a continued theme, with former CEO Louis D'Ambrosio exiting the scene in February and chairman Edward Lampert, who had no experience in retail, taking his place.
Most recently, Sears Canada CEO Calvin McDonald resigned from his position. Sources close to the situation said McDonald had butted heads with Sears Holdings Corp. and was dissatisfied with the retailer's progress. His move came in the midst of a three-year restructuring initiative, the timing of which some analysts believe will dampen Sears' progress.
Cleveland Research reported that apparel comps are currently negative. Additionally, shares are going down in the appliances segment, and Kmart suppliers are reducing their 2014 forecasts.