Sears' Lampert Reaffirms Business Model Going Forward
HOFFMAN ESTATES, Ill.-Edward Lampert, chairman and CEO of Sears Holdings, said the company will continue progressing in its Shop Your Way member-centric and integrated-retail business model in 2014.
In a letter to shareholders issued after Sears Holdings released its results for fiscal 2013, Shop Your Way members and sales associates at Sears and Kmart stores, Lampert said the model's two key platforms, Shop Your Way and Integrated Retail, "continue to become more prominent both in how we run the company and how we serve our members." He added that certain key metrics have demonstrated that the member-centric strategy is bearing fruit. Shop Your Way Members comprised 69 percent of the company's 2013 sales, up from 59 percent in 2012. For last year's fourth quarter, Shop Your Way members accounted for 72 percent of total sales, up from 58 percent from the prior year's fourth quarter.
This year will see further evolution in both platforms, Lampert said. One example is the recent launch of in-vehicle pickup, by which Shop Your Way members can notify the Sears or Kmart store through the membership program's mobile application that they have arrived at the store. Their purchases can then be delivered directly to their cars.
Also in 2014, Lampert said Sears Holdings will continue evaluating the possible spinoff of its Lands' End business. The company will also continue considering "strategic alternatives" for the Sears Auto Center business.
"Our strategy has evolved further as the retail industry has changed and our ability to compete--with fewer stores, with less space per store and with a marketplace of products--has become more clear," Lampert said. "It is up to us to executive on this strategy and to restore profitability to the company."