Management Shakeup Begins at Sears
Hoffman Estates, Ill., Four Sears, Roebuck and Co. executives were terminated, according to a report in the Chicago Sun-Times. The shakeup comes a week after Kmart’s $12.3 billion takeover of Sears was approved.
The terminated employees include:
• Bill Bass, senior VP of e-commerce at Lands’ End and the head of Sears’ online and catalog operations. He will be replaced by Kmart’s Chris Shimojima, who becomes general manager of online and catalog sales.
• Gary Kelly, Sears CIO. Kmart’s Karen Austin will replace him as CIO.
• Bob O’Leary, head of public relations and government affairs. He will be replaced by Sears’ Edgar “Ted” McDougal.
• Greg Lee, head of human resources. He will be replaced by Sears’ Bob Luse.
In addition to these executive changes, Sears executive VP of store operations William White III will retire. Also, Catherine David, who leads Sears’ Great Indoors concept, will take additional responsibility for the Sears Essentials and Sears Grand formats, and Rob Lynch will become general manager of the Orchard Supply hardware chain.
Walgreen 2Q Profits Up
Deerfield, Ill., Walgreen Co. reported second-quarter profit of $490.9 million, or 48? per share, up from $431.6 million, or 42? per share, a year earlier. Sales increased 12.3% to $11 billion from $9.78 billion a year ago, while comp-store sales rose 7.7% for the quarter.
“Our results benefited from continued solid execution at our stores, especially during the important holiday selling season,” said chairman and CEO Dave Bernauer in a statement. “Although the cold and flu season peaked later this year than the previous year, the overall effect on the quarter was fairly comparable.”
Former Penney Exec to Lead Mervyn’s
Dallas, Former J.C. Penney Co. executive Vanessa Castagna has joined private-equity firm Cerberus Capital Management, the New York-based company that is part of the investment group that acquired Mervyn’s Department Stores from Target Corp. last year. As a senior member of the Cerberus operations team, Castagna will take the helm of the Mervyn’s chain and will be charged with engineering the same turnaround for Mervyn’s as she did with J.C. Penney.
Castagna resigned from Plano, Texas-based J.C. Penney last November when she was passed over for the top job in the company in favor of Mike Ullman, who replaced retiring CEO and chairman Allen Questrom.
Castagna was credited with helping turn J.C. Penney around by bringing in new brands and leading marketing campaigns that helped the chain win back customers from rival chains.
Castagna has held senior executive positions with Wal-Mart Stores, Target Corp. and Federated Department Stores.