Hoffman Estates, IL, Mar. 11--Sears, Roebuck and Co. cut its work force by 17% in 2003, but turnover in its executive suite was twice that rate.
Sears eliminated about 40,000 jobs in 2003, ending the year with 201,000 workers worldwide, according to the company's annual report, filed Wednesday with the Securities and Exchange Commission.
But among the top 15 officers at the retailer, six were new in 2003. The turnover comes as Sears is in the midst of a corporate review that will likely lead to more layoffs. Sears is trying to reduce costs to better compete against retailers such as Wal-Mart Stores Inc. and Target Corp. that are stealing shoppers for everyday goods. At the same time, Home Depot Inc. and Lowe's Corp. are stealing share from Sears' key categories such as appliances.
Since making the decision that Sears would sell its credit card division last year, Chief Executive Alan Lacy has insisted that the company can compete as a pure retailer.
Of the 40,000 jobs lost at Sears last year, about 8,300 were eliminated through the sale of the credit business. About 3,500 more left when Sears sold its National Tire and Battery unit.
But the bulk of the losses came from a restructuring of store operations, a process expected to continue this year.
The revolving door also is likely to keep turning in Sears' top management ranks.
Mark Millman, a Maryland-based executive recruiter, said he has received many resumes lately from Sears' executives.
"There's a lot of uncertainty," he said.
Turnover in one-third of the top posts within a year is "extremely high," Millman said. He added: "And of the other two-thirds who haven't left, you've got to think that some have feelers out."
Only two of Sears' 15 executive officers had the same jobs when Lacy became CEO in October 2000.
The broader work force reductions reflect Sears' efforts to become more efficient and better positioned to grow, spokesman Chris Brathwaite said.
He acknowledged that some employees may feel uneasy about the future.
"That's natural in a time of change," he said.
As for the executive turnover, Brathwaite said, "Alan was filling out his team" and was able to attract executives from outside the company.
It's not surprising that some of the executives departed.
David Dyer joined Sears' management team after the retailer purchased Lands' End in 2002. He had been Lands' End's chief executive but had not been expected to stay long after the acquisition. He left to run Tommy Hilfiger.
Other departures, however, were unexpected.
Kathryn Bufano, who was executive vice president for soft lines, was let go last April despite the strong start of the Covington clothing brand she helped launch. Sales for Covington were impressive and reached about $500 million in 2003, topping sales for Sears' proprietary Die Hard battery line.
Bufano was replaced by Mindy Meads, another former Lands' End executive.
Six of the Sears' top officers are new in the executive suite, and several are new to Sears.
Gwendolyn Manto joined Sears as executive vice president of apparel last year. She had been chief merchandising officer at off-price retailer Stein Mart.
Robert O'Leary is senior vice president of public relations. He had been a senior vice president for Goodyear Tire & Rubber Co.
General counsel Andrea Zopp also joined Sears in 2003. She had been deputy general counsel for Sara Lee Corp.
The other new executives include longtime Sears manager William White, now executive vice president of full-line stores; Lucinda Baier, senior vice president of credit and financial products, who joined Sears in 2000 as vice president of tax; and Meads.
Besides Dyer and Bufano, departing executives include those from key retailing categories.
Mary Conway, formerly executive vice president for full-line store operations, was replaced last April by White.
Paul Liska, former president of credit and financial products, left at the end of 2003 after Sears sold its credit card division.
He had previously served as Sears' chief financial officer but replaced the then-ousted head of the credit card unit in October 2002.
Lyle Heidemann left as executive vice president of hard lines. He retired, at 58, last year after a long Sears career.
And Steven Cook, who was deputy general counsel and acting general counsel, took another post at Sears after Zopp's arrival.
